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.

22ND APRIL,2010

No

No

 No

 No

 It applies to all contracts without any minimum limit.

Yes, it applies all contracts of any nature in the upstream sector.

Yes, all contracts and contractors irrespective of size of contractor or contract.

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.

Yes

All variations that escalate contract price

All variations that escalate contract price

Yes, to the extent of variation.

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.

Deduction should be made upon award.

It is a product contract sum before taxes.

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

All deduction to NCDMB will be receipted by NCDMB.

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?