Yenagoa, Nigeria – The Nigerian Content Development and Monitoring Board (NCDMB) has renewed its directive to operators in the upstream oil and gas sector to strictly comply with the mandatory one per cent deduction for the Nigerian Content Development Fund on all qualifying contracts, warning that failure could affect access to regulatory approvals.
Okay News reports that the reminder was contained in a statement issued on Wednesday by the board’s General Manager of Corporate Communications, Dr. Obinna Ezeobi. Executive Secretary Felix Omatsola-Ogbe stated that the fund was established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010, as a dedicated pool to enhance indigenous participation across the oil and gas value chain. He emphasised that the law makes it compulsory for all entities engaged in upstream petroleum operations to remit one per cent of the value of every contract into the fund, which is exclusively managed by the board.
The Nigerian Oil and Gas Industry Content Development Act was introduced in 2010 to address the limited participation of indigenous firms in the sector. Prior to its passage, much of the industry’s technical expertise, financing, and procurement were dominated by foreign companies. The Act created the Nigerian Content Development Fund as a ring-fenced intervention fund to finance local content capacity development initiatives. Over the years, the fund has become a central tool in building technical expertise, strengthening indigenous companies, and reducing reliance on foreign service providers.
The fund plays a pivotal role in strengthening Nigerian participation in the energy sector. Proceeds are channelled into training initiatives, technical development schemes, and affordable financing support for Nigerian firms seeking to execute large-scale projects. The fund supports training in specialised oil and gas skills, promotes technology transfer, and enables in-country value creation. The board stressed that the fund is legally ring-fenced and distinct from general government revenues, underscoring that all remittances must be paid strictly into accounts officially designated by the NCDMB to be recognised as valid compliance.
The board has now made the Nigerian Content Development Fund Compliance Certificate a mandatory requirement for accessing several of its regulatory services. Without a valid compliance certificate, companies may be denied access to regulatory documents, certifications, approvals, and operational clearances. Only remittances paid into officially designated NCDMB accounts will be recognised as valid fulfilment of obligations. In February 2025, the board insisted that international oil companies must patronise local firms in executing their projects, in line with the Nigerian Oil and Gas Industry Content Development Act. The fund has reportedly grown into a major industry intervention pool exceeding 300 million dollars, positioning it as a key financial instrument for driving local content enforcement and indigenous enterprise growth.
 has renewed its directive to operators in the upstream oil and gas sector to strictly comply with the mandatory one per cent deduction for the Nigerian Content Development Fund on all qualifying contracts, warning that failure could affect access to regulatory approvals.){kind=link}