Nigerian Content Development Fund

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Nigerian Content Development Fund (NCDF)

 NOGIC act, section 104.

A Fund to be known as the Nigerian Content Development Fund (the “Fund”) is established for purposes of funding the implementation of Nigerian content development in the Nigeria oil and gas industry.

The sum of one per cent of every contrary awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity, or transaction in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the fund.

The fund shall be managed by the Nigerian Content Development Board and employed for projects, programmers and activities directed at increasing Nigerian content in the oil and gas industry.

Every entity awarding the contract should deduct 1% and remit to the fund.

 It applies to all contracts without any minimum limit.

Deduction should only be made once by an awarding entity on behalf of its contractor, Any payment made by the awarding entity is recoverable from the contractor.

The Sub-contractor has the primary obligation to pay the 1% deduction, while the Contractor has the obligation to deduct it and remit to the Board. Will not treat the deduction as a tax which must be passed to the contractor, but a contribution imposed by the law on all contracting stakeholders.

Reconciliation procedure is already put in place by the Board to address the issue of refund’s owing to over payments.

Yes, [deductions will apply to overseas vendors once the contract was awarded by a Nigerian awarding entity or awarded on its bill by a foreign entity.

Deductions shall apply to all upstream contracts awarded within the territory of the Federal Republic of Nigeria including its Territorial waters, Exclusive Zones and Free Trade Zones?

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)
Vision

To be the catalyst for the industrialization of the Nigerian Oil and Gas Industry and its linkage sectors.

Mission

To promote the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act

Core Values

Patriotism, Passion, Professionalism, Integrity, Creativity and Team Spirit

Latest News

Press Releases

NCDMBPlans Changes to Enhance Nigerian Content Fund

The Nigerian Content Development and Monitoring Board (NCDMB) plans to introduce some changes that will enhancethe Nigerian Content Intervention (NCI) Fund and increase the fund’s

Freedom of Information Act
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