NCDMB RAISES CONCERN OVER ENFORCEMENT OF 1% OIL FUND LEVY
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By: Muftau Fatimo
The Nigerian Content Development and Monitoring Board has reaffirmed that the remittance of the one per cent Nigerian Content Development Fund (NCDF) levy is compulsory for all operators, contractors, and service companies in the upstream oil and gas sector.
The Board cautioned that access to its regulatory services, approvals, and certifications will now be strictly contingent on presenting a valid Nigerian Content Development Fund Compliance Certificate.
In a statement issued on Wednesday from the Nigerian Content Tower, Executive Secretary Felix Ogbe emphasized that the levy is legally mandated and must be paid into accounts officially designated by the Board.
Ogbe further explained that the Nigerian Content Development Fund was established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010, as a dedicated fund to enhance indigenous participation in the oil and gas industry.
He stated that entities covered by the Act are required to remit one per cent of the value of every upstream contract, stressing that the Board has exclusive authority to manage and administer the fund.
Ogbe said, “Funds generated under the NCDF are deployed to support indigenous oil and gas contractors and service companies, to finance capacity development and training in the industry, to enable access to affordable finance for indigenous participation, and to drive sustainable growth across the oil and gas value chain.
“The NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly,” adding that it is “not classified as Federal Government revenue payable into the Consolidated Revenue Fund and its collection and administration are expressly governed by Section 104 of the NOGICD Act.
“All remittances of the one per cent (1%) NCDF levy must be made strictly into the accounts officially designated by the NCDMB, pointing out that “any remittance made outside the accounts formally designated by the NCDMB “shall not be recognised as a valid payment of the one per cent (1%) NCDF Levy under the Act.
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