February 09, (THEWILL) — The Nigerian Content Development and Monitoring Board (NCDMB) has introduced new guidelines to eliminate unqualified and proxy firms from participating in oil and gas contracts, reinforcing compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The Board said the new rules are intended to curb the activities of briefcase companies and foreign-controlled entities that falsely present themselves as Nigerian firms to secure contracts. Such practices, it noted, weaken local capacity development and undermine the objectives of the country’s local content policy.
Under the revised framework, oil and gas operators will be required to conduct stricter due diligence on contractors before contract awards. This includes verification of ownership structure, technical competence, workforce, equipment, and financial capacity. Companies that fail to meet the required standards risk disqualification.
The NCDMB also warned that firms found to be acting as fronts for foreign interests or engaging in misrepresentation will face sanctions, including suspension or delisting from the Nigerian Content Joint Qualification System (NOGIC JQS).
Industry stakeholders say the move could enhance transparency and competitiveness in the sector, while ensuring that genuine Nigerian companies benefit from oil and gas opportunities.
The Board reaffirmed its commitment to strengthening indigenous participation and promoting sustainable growth across Nigeria’s oil and gas industry.
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.
