Monitoring & Evaluation FAQ
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RESEARCH AND DEVELOPMENT IMPLEMENTATION
Sections 36, 37, 38, 39 and the Schedule to the Act
Every company operating in the Nigerian Oil and Gas Industry
No. Operators carry out Research and Development on their project as agreed in their Nigerian Content Plan; however, a revolving 3-5-year Research and Development implementation is a Statutory requirement for all companies.
There is no specific budget for the revolving 3-5year Research and Development plan.
The Research and Development Plan and Quarterly Statutory Report.
It outlines a revolving 3-5year Plan for Oil and Gas related Research and Development Initiatives to be undertaken in Nigeria, together with a breakdown of the expected expenditures that will be made in implementing the Research and Development Plan.
The Benchmark declarations contained therein, describes the minimum requirements which each Research Centre in the Nigerian Oil and Gas sector is to achieve in order to meet the goals of Nigerian Oil and Gas Industry Content Development Act (2010). Individual Research Centers may modify the Benchmark provided they do not go below the minimum benchmark.
There are four Thematic Areas for Research and Development provided by the NOGICD Act, 2010: 1. Engineering Studies, Reservoir Studies, Facilities and Drilling 2. Geological and Geophysical Studies 3. Safety and Environment Studies 4. Local Substitution Studies |
NIGERIAN CONTENT NON COMPLIANCE REMEDIATION (NCNC-REM)
NOGICD Act, Sections:
Section 68. An operator, contractor or sub-contractor who carries out any project contrary to the provisions of this Act, commits an offence and is liable upon conviction to a fine of five per cent of the project sum for each project in which the offence is committed or cancellation of the project.
Section 4. The Nigerian Content Development and Monitoring Board (“the “Board”) established in accordance with this Act shall make procedure that will guide, monitor, coordinate and implement the provisions of this Act.
Section 70 (i). The Board shall make procedures to guide the implementation of this Act and ensure compliance with all the provisions of this Act;
Facilitating company has three (3) activity options to carry out as remediation:
(i) NCNC-Rem training
(ii) NCNC-Rem Capacity Development Initiative (CDI)
(iii) NCNC-Rem Research and Development (R and D)
NCDMB nominates candidates for NCNC-Rem training programme from the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS) portal at www.nogicjqs.gov.ng. Nigerians of all levels academic qualifications are encouraged to apply.
Results of candidates’ selection exercise are being signed off by facilitating company and NCDMB, and communicated to candidates by facilitating company via email and text messages.
No, NCNC-Rem training programme is structured to bridge the skills gap between employer and academia. At the end of the training programme and upon availability of projects and slots, NCDMB encourages facilitating companies and training providers on employment of trainees with appreciable performance in learning and character.
At the end of training programme and upon availability of projects and slots, NCDMB encourages facilitating companies and training providers on employment of trainees with appreciable performance in learning and character. NCDMB includes Entrepreneurship module in NCNC-Rem training programme to teach trainees on how to become entrepreneurs and employers of labor.
No, NCDMB does not charge any fee from candidates at any level of its NCNC-Rem training programme. The training programme is fully sponsored by facilitating company.
No, minimum monthly stipend paid to trainee by facilitating company is not taxable and cannot be delayed beyond the end of calendar month.
Minimum monthly stipend paid to trainee and other welfare package of the training programme are contained in the approved training plan and shared with all trainees during training kick off meeting.
Trainee minimum level of behavior and code of conduct are contained in the trainees’ handbook (code of conduct and indemnity clause), administer by the Board, sign off by each trainee during training kick off session and witnessed by guardian of the trainee.
No, facilitating company shall be responsible for capital development of its staff. NCNC-Rem training is designed for unemployed Nigerians and to bridge the skills gap between the industry and academia.
Minimum duration of NCDMB NCNC-Rem training programme is twelve (12) months. Consisting of classroom and on the job training sessions.
No, Certifications issued to trainees at the end of training programme must be internationally recognized and acceptable in the oil and gas industry.
No, this is punishable under trainee’s code of conduct.
No, trainee can only run one training programme at a time.
Upon recommendation by NCDMB, trainee can be enrolled in advanced training programme.
This is for recommendation of trainees for advance training programme or employment opportunities in the oil and gas industry.
For NCNC-Rem training to be completed, facilitating company MUST ensure complete implementation of the approved training plan. NCDMB shall finally participate in the training close out ceremony organized by facilitating company and declare the training programme closed.
No, CSR is a sole responsibility of facilitating company and cannot be substituted with NCNC-Rem CDI.
NIGERIAN CONTENT EQUIPMENT CERTIFICATE (NCEC) MONITORING
The NOGICD Act mandates the Board to directly develop capacity of the local supply and to also develop procedure and put in place enablers that will simulate investment and assure utilization of locally made goods by the industry.
NOGICD Act, Sections:
Section 4. The Nigerian Content Development and Monitoring Board (“the “Board”) established in accordance with this Act shall make procedure that will guide, monitor, coordinate and implement the provisions of this Act.
Section 70 (i). The Board shall make procedures to guide the implementation of this Act and ensure compliance with all the provisions of this Act;
NCEC application (fresh or renewal) is through the NOGICJQS portal at www.nogicjqs.gov.ng. Company shall login to its NOGICJQS portal account and apply. NCEC process is automated on the NOGICJQS portal at www.nogicjqs.gov.ng from application stage to issuance of the NCEC
Requirements for NCEC categories are contained in the Equipment Component Manufacturing Initiative (ECMI) and NCEC implementation procedure downloadable on the NCDMB website www.ncdmb.gov.ng
The Board shall make a determination on NCEC applications submitted to it within thirty (30) working days of the receipt of the application. However, if it is unable to determine on an application within 30 working days, it shall inform the applicant the reasons for the delay and give a definite time within which a determination shall be made. The extended period shall not be more than 15 days after the expiration of the initial 30-day period
Company can track its NCEC application status through the NOGICJQS portal account at www.nogicjqs.gov.ng
During the period of processing of the NCEC, if any applicant is required to present NCEC for a tender, the applicant may present evidence of submission of application to the Board for the purpose of tender documentation. However, after the 45 days’ period it is expected that the applicant will present the certificate to the operator.
SERVICE UTILISATION (LEGAL, INSURANCE AND FINANCE) REVIEW MEETINGS WITH EXTERNAL
ection 49, 51& 52 of the NOGICD Act 2010
Section 52 (f) of the NOGICD act requires that your revenue retained should be a minimum of a 10% of your Total Revenue. That means that the Revenue Retention, captures your financial transactions/revenue for the previous 6 months versus the revenue retained in the Nigerian economy as required by the Act: Furthermore, revenue retention means Total revenue that accrued to your company within the past 6 months for the period under review (evidence of bank details which the revenue was paid into).
Revenue retention requires that the company is expected to indicate the portion of that revenue that was retained in Nigeria (I.e. subtract any transfers, or payments made directly to a foreign bank or company for any service, procurement, loan… from your total revenue for the period). If no foreign payment was made during the period, your revenue retention is 100%, hence you will indicate the same value as your total revenue retained in the past six months within the reporting period.
The Board has the prerogative to request for financial statement in line with Section 64 & 65.
Section 64. For the purposes of assessment and verification, all operators and contractors shall provide the Board or its designated agent with access to their facilities and all documentation and information required for substantiating the Nigerian content reported.
Section 65. The operator shall ensure that its partners, contractors and subcontractors are contractually bound to report Nigerian content information to the operator and, if so requested by the Board, directly to the Board, and to allow the Board or its designated agent access to their records for the purposes of assessment and verification of Nigerian content information reported to the operator or the Board.
PROJECTS MONITORING ACTIVITIES
Yes. See the provision of 5.64 of the NOGIC D Act,2010.
Yes. See the provision of 5.65 of the NOGIC D Act,2010.
DOWNSTREAM MONITORING ACTIVITIES
No. One of the criteria for accessing the NCIF is that an applicant company must be a contributor to the NCDF. Downstream companies are not contributors to the NCDF for now.
Yes. Provided the value of the project is 1 above USD$ 1M.
Key Thrusts of the NOGICD Act of 2010
- Integrate oil producing communities into the oil and gas value chain.
Foster institutional collaboration. - Maximize participation of Nigerians in oil and gas activities.
- Link oil and gas sector to other sectors of the economy.
- Maximize utilization of Nigerian resources i.e. goods, services and assets.
- Attract investments to the Nigeria oil and gas sector (service providers, equipment suppliers etc)
To be the catalyst for the industrialization of the Nigerian Oil and Gas Industry and its linkage sectors.
To promote the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act
Patriotism, Passion, Professionalism, Integrity, Creativity and Team Spirit
NIGERIAN CONTENT NON COMPLIANCE REMEDIATION (NCNC-REM)
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