Nigerian Content Development & Monitoring Board



Monitoring and Evaluation (MED) FAQ

RESEARCH AND DEVELOPMENT IMPLEMENTATION

Which sections of the NOGICD Act, 2010 talks about Research and Development?

A. Sections 36, 37, 38, 39 and the Schedule to the Act

Whose obligation is it to carry out Research and Development Initiative?

Every company operating in the Nigerian Oil and Gas Industry

Is Research and Development implementation applicable to Marginal Field Operators and Service companies?

Yes

Is Research and Development implementation done only on the back of projects?

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.

What amount of money should be budgeted for the revolving 3-5year Research and Development plan by a company?

There is no specific budget for the revolving 3-5year Research and Development plan.  

What are the Statutory submissions required for Research and Development implementation?

The Research and Development Plan and Quarterly Statutory Report.

What is the nature of the revolving 3-5year Research and Development Plan?

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.

What is NCDMB-Benchmark-Minimum-Research-Standard?

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.

What are the Thematic Areas for Research and Development?

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)

What is the legal basis for the remediation?

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;

What are the options of Remediation by facilitating company?

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)

How does NCDMB nominate candidates for NCNC-Rem training programme?

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.

How does NCDMB communicate the result/outcome of candidates’ selection exercise to candidates?

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

Does NCNC-Rem training programme has employment commitment?

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.

What is the fate of trainees at the end of NCNC-Rem training programme?

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.

Does NCDMB charges any fee from applicants for its NCNC-Rem training programme?

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

Is monthly stipend of NCNC-Rem trainee taxable and can it be delayed?

No, minimum monthly stipend paid to trainee by facilitating company is not taxable and cannot be delayed beyond the end of calendar month

What is the minimum monthly stipend paid to trainee and other welfare package?

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

What is the minimum level of behavior expected of a trainee?

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

Would staff of facilitating company be eligible to participate in NCNC-Rem training programme?

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

What is the minimum duration of NCNC-Rem training programme?

Minimum duration of NCDMB NCNC-Rem training programme is twelve (12) months. Consisting of classroom and on the job training sessions

Does NCDMB accepts certificate of attendance issued to trainees by facilitating company?

No, Certifications issued to trainees at the end of training programme must be internationally recognized and acceptable in the oil and gas industry.

Can a trainee switch from one NCNC-Rem training programme to another?

No, this is punishable under trainee’s code of conduct

Can trainee run multiple training programmes at a time?

No, trainee can only run one training programme at a time

Can trainee be subsequently enrolled in another NCNC-Rem training programme?

Upon recommendation by NCDMB, trainee can be enrolled in advanced training programme

Why should trainee update their record on the NOGICJQS portal at the end of NCNC-Rem training programme?

This is for recommendation of trainees for advance training programme or employment opportunities in the oil and gas industry

What are the requirements to be satisfied for NCNC-Rem training to come to completion and NCDMB close out the NCNC-Rem training programme?

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.

Can facilitating company substitute NCNC-Rem CDI with its Corporate Social Responsibility (CSR)?

No, CSR is a sole responsibility of facilitating company and cannot be substituted with NCNC-Rem CDI

NIGERIAN CONTENT EQUIPMENT CERTIFICATE (NCEC) MONITORING

What is the legal basis for the remediation?

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;

How to apply for fresh or renewal of NCEC?

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

FAQ Question 3
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What category of NCEC shall company apply for?

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 

How long does it take to process NCEC application by the Board?

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

How would company track the status of NCEC application?

Company can track its NCEC application status through the NOGICJQS portal account at www.nogicjqs.gov.ng

After confirmation of NCEC application by NCDMB and before issuance of the NCEC, what should company present for the purpose of tender documentation?

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

What section of the act that authorises the Service Utilization team to request for the legal, insurance and financial services report from the Oil & Gas industry.

Section 49, 51& 52 of the NOGICD Act 2010

What section of the Act interpret minimum of 10% Retention?

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).

The Meaning of revenue and total turnover as it relates to section 52 of the Act for Financial services report.

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.

Does the Board have authority to request for financial statement of a company in the oil and Gas industry?

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. 

DOWNSTREAM MONITORING ACTIVITIES

What is the frequency at which operators and service providers submit Nigerian Content Performance Reports?

Quarterly

Is it mandatory to submit a close-out report after completion of a project?

Yes

What is the frequency of Employment and Training Plan submission and reporting?

Quarterly

What is the frequency with which procurement report is submitted?

Quarterly

What is the frequency of job forecast submission?

Quarterly

Must Community contractors register for the NOGICD JQS?

Yes.

Do contractors in the community need to get NCEC to supply equipment, materials, systems and packages?

Yes.

Can operators and service providers use non-registered vendors or contractors on the NOGICD JQS?

No

Can operators and service providers, even if they are Nigerian vendors, use vendors or contractors who do not have NCEC legitimate for procurement activities and services?

No

Can the operator or service provider acquire or purchase any oil and gas equipment, materials, systems and packages directly from an original equipment manufacturer unless such material is made in Nigeria?

No

Can operators and service providers use non-categorized marine vessels for contracts? 

No

Does the operator or service provider need to provide the Board with access to its facilities and all the documentation and information necessary to substantiate the recorded Nigerian content?

Yes. See the provision of 5.64 of the NOGIC D Act,2010.

Would it be the operator 's duty to convey to its contractors and subcontractors their Nigerian content policies, obligations and procedures, and to track and ensure their compliance?

Yes.

Is it a contractor’s responsibility to communicate their Nigerian content policies, commitments, and procedures to their subcontractors and to ensure compliance their compliance?

Yes. See the provision of 5.65 of the NOGIC D Act,2010.

Does the Board have the right to sanction any business, put on hold or cancel an existing contract, project or service to enforce compliance?

Yes.

Do the provisions of the NOGIC D Act 2010 apply to contracts that are worth less than US$ 1 million?

Yes.

Does the Board have to be involved in contracting process for contracts under US$ 1 million?

No

Can an operator go-ahead to award a contract worth more than US$ 1 million without the involvement of the Board to a Nigerian company?

No

Can an operator/service provider cancel the scope of an NC project/contract and award the same to a foreign company without NCDMB approval?

No

Does the 1 per cent NCDF cover downstream facilities?

No

Do downstream services apply to the provisions of the NOGICD Act?

Yes.

Can an NCEC Category A vendor be used to buy products on the same project/contract outside the range of its NCEC?

No

10-YEAR STRATEGIC ROADMAP