Sunday, September 7, 2025
24.5 C
Lagos

NCDMB: Court Affirms Mandate to Collect 1% NCDF in Oil/Gas Sector

 

The Federal High Court sitting in Yenagoa, Bayelsa State has delivered a landmark judgment confirming the authority of the Nigerian Content Development and Monitoring Board (NCDMB) to collect the one percent Nigerian Content Development Fund (NCDF) levy from every contract awarded in the Nigerian oil and gas upstream transaction as mandated under section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

The judgment was delivered in the case instituted by a group of Nigerian Drilling Companies known as Incorporated Trustees of the International Association of Drilling Contractors (IADC) against the NCDMB, seeking to stop the collection of one percent NCDF levy.

The IADC members had filed the lawsuit – Suit No.FHC/YNG/CS/178/2022 challenging the powers of NCDMB to demand the one percent NCDF levy from their members and contractors, contrary to the clear provisions of section 104(2) of the NOGICD Act which states that “the sum of one percent of every contract 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 group also obtained an ex-parte injunction against the Board prohibiting the demand, collection or anything whatsoever either by itself or through its agents, representatives, or privies in relation to NCDF payment or remittance from their members and contractors pending the final determination of the lawsuit.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote confirmed the development, saying that “the Board vigorously contested the issues in court and effectively countered the arguments of the plaintiffs. Hence, on Tuesday 9th May 2023, the Federal High Court finally gave judgment in favour of the Board, dismissing the suit and prayers of the plaintiffs as wholly incompetent, baseless and that the suit did not disclose any reasonable cause of action. The interim injunction earlier granted ex-parte on the 19th of July 2022 was also vacated.”

Wabote enthused that the decision would strengthen the Board’s resolve and commitment to Nigerian content implementation regardless of any headwind or distraction.

The NCDF is NCDMB’s only source of funding sequel to the exit of the Board from federal allocation in 2017/2018. The NCDF is applied towards funding the implementation of Nigerian content development in the Nigerian oil and gas industry, notably projects, programmes and activities directed at increasing Nigerian content in the oil and gas industry.

One of the judicious applications of the Fund is the very successful credit scheme extended to Nigerian oil and gas businesses through the Nigerian Content Intervention Fund (NCI Fund), managed by the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM-Bank).

Other notable utilisations of the NCDF are the development of Nigerian Oil and Gas Parks Scheme (NOGAPS), equity participation in notable third-party ventures, Human capacity development initiatives, and the institution of the Nigerian Content Research & Development Fund as well as other R&D initiatives.

Other applications are the construction of the 17-storey Nigerian Content Tower, entrepreneurship schemes and competitions, and the on-going construction of the Conference Hotel Project (CHP).

 

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

Unity Bank Donates N10m to Fiditi National Open University

From Right: Managing Director/CEO of Unity Bank Plc, Mrs....

Market Statistics Monday, 9th January, 2017

Market Cap (N'bn)              ...

PalmPay, Jumia Launch Holiday Campaign to Reward Users

This holiday season just got a whole lot more...

Pope to Davos: Don’t Forget The Poor!

In a message read by Cardinal Peter Turkson, President...

Insurance Meets Tech Confab 2.0 Set for Sept 28

The second edition of the Insurance Meets Tech (IMT)...

UNDP, Imo, Abia States Unveil N400m Economic Program to Support 11,000 Residents

As part of efforts to support communities deeply affected...

Continental Re: 9th Pan-African (Re)Insurance Journalism Awards for April 12

Continental Reinsurance Plc is delighted to unveil the confirmed...

Sovereign Trust Insurance Reports 23% Growth in Revenue in 2023

Sovereign Trust Insurance Plc recently released its 2023 audited...
spot_img

Related Articles

Popular Categories

spot_imgspot_img