The Nigerian Content Development and Monitoring Board (NCDMB) has threatened to impose regulatory sanctions on oil and gas companies that fail to remit statutory contributions to the Nigerian Content Development Fund (NCDF), warning that it would no longer tolerate delays or non-remittance of payments.

The warning came as the Board unveiled fresh measures to deepen indigenous participation in Nigeria’s oil and gas sector, including a nationwide industry capacity audit, vendor development programme and workforce training initiatives, while calling for faster project approvals to unlock investments.

Speaking at the 25th Nigeria Oil and Gas (NOG) Energy Week Conference and Exhibition in Abuja, the Executive Secretary of NCDMB, Felix Ogbe, said compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act remained non-negotiable, describing the NCDF as a critical financing mechanism for sustaining local content development.

“As we chart the next phase of local content growth, I must also reiterate the importance of full compliance with statutory obligations under the NOGICD Act 2010. The Nigerian Content Development Fund remains a critical vehicle for financing capacity development and other strategic interventions that sustain the growth of our industry.

“It is therefore unacceptable for any company to withhold, delay or fail to remit its statutory contributions to the Nigerian Content Development Fund,” Ogbe said.

He warned that the Board would intensify enforcement against defaulting companies.
Ogbe also cautioned operators, contractors and service providers that compliance with statutory obligations would increasingly determine their eligibility to participate in opportunities across the oil and gas industry.

“I wish to remind all operators, contractors and service providers that possession of a valid NCDF Compliance Certificate is increasingly becoming an important requirement for participation in industry opportunities and regulatory engagements.

“Companies that benefit from the opportunities created by the Nigerian content framework must also fulfil their obligations to support its continued success. Compliance with the NCDF has far-reaching implications, positively influencing the growth, resilience and overall development of the Nigerian economy,” he added.

Beyond the compliance warning, the NCDMB boss said Nigeria had recorded significant progress in local content implementation since the enactment of the NOGICD Act in 2010, with indigenous participation in the oil and gas industry increasing from less than five per cent to 61 per cent.

Ogbe, however, stressed that the next phase of local content development should move beyond compliance and focus on industrialisation, manufacturing, capacity expansion, innovation and global competitiveness.

“Over the last 15 years, Nigeria’s local content journey has become a remarkable success story.

Through the implementation of the NOGICD Act of 2010, we have transformed local participation in the oil and gas industry from marginal levels of less than five per cent to 61 per cent, where Nigerians now own assets, provide services, execute projects and contribute significantly across the oil and gas value chain.

“The next phase of local content growth must go beyond participation and compliance. It must focus on capacity expansion, industrialisation, manufacturing, sustainability and global competitiveness,” he said.

As part of efforts to strengthen indigenous capacity, Ogbe announced that the Board would commence a joint industry capacity audit in the third quarter of the year following the development of a harmonised framework by key regulators and industry stakeholders.

Ogbe further disclosed that the harmonised framework had introduced a five-tier classification system for service providers, with the lower categories designed to nurture emerging indigenous firms into manufacturers and original equipment manufacturers.

“It is important to note that while the capacity audit will identify service providers capable of supporting major capital projects such as the seven deepwater projects, the industry has adopted five classes of service providers that also recognise new entrants requiring targeted support.

“Class Four and Class Five tagged ‘Emerging Players’ and ‘Essential Vendors’, will form the foundation of a robust vendor development programme designed to support their evolution into manufacturers and original equipment manufacturers,” he explained.

Ogbe added that the Board had introduced the Nigerian Content Trainers Registration Certificate in collaboration with the Oil and Gas Trainers Association of Nigeria to standardise training and strengthen workforce development.

Despite the progress recorded in local content implementation, Ogbe maintained that sustained growth would ultimately depend on increased investment and faster approval of oil and gas projects.