February 20, (THEWILL) — The remittance of the 1% Nigerian Content Development Levy remains mandatory, according to the Nigerian Content Development and Monitoring Board (NCDMB).
The Board reaffirmed that all operators, contractors, subcontractors, alliance partners, and other entities involved in projects within Nigeria’s oil and gas industry are required by law to remit 1% of the value of every contract awarded to the Nigerian Content Development Fund (NCDF).
In a recent clarification, the NCDMB emphasised that the levy is not optional and applies across upstream, midstream, and downstream operations. The Board noted that compliance is critical to sustaining the objectives of the Nigerian Content Development Fund, which was established to deepen local participation, build indigenous capacity, and promote technology transfer within the sector.
The agency further warned that failure to remit the levy constitutes a breach of statutory obligations and may attract sanctions, including penalties and possible restrictions on project approvals.
Stakeholders were, therefore, urged to ensure the timely and accurate remittance of the levy, along with proper documentation, to avoid regulatory infractions. The Board also reaffirmed its commitment to monitoring compliance and strengthening enforcement to ensure the Fund continues to support human capital development, infrastructure growth, and local enterprise expansion in Nigeria’s oil and gas industry.
Industry players are advised to engage directly with the NCDMB for guidance on payment procedures and compliance requirements.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
