NCDMB cracks down on midstream sector, insists on strict NOGICD compliance

The Nigerian Content Development and Monitoring Board (NCDMB) has charged operators in Nigeria’s midstream oil and gas segment to strictly comply with the provisions of the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act 2010), warning that violations could attract severe sanctions, including suspension, project withdrawal and criminal prosecution.

The warning was delivered at the NCDMB Sensitisation Workshop for Midstream Companies and Stakeholders held Friday in Lagos, where the Board deployed a five-directorate technical team to strengthen compliance awareness across the rapidly expanding midstream sector.

The Board reaffirmed that obtaining the Nigerian Content Equipment Certificate (NCEC) attracts zero processing fees, stressing that the use of middlemen in any of its transactions has been banned. It also warned that expired or improperly applied NCECs would result in automatic disqualification from tenders.

The workshop, organised by the Monitoring and Evaluation Directorate with support from the Project Certification and Authorisation, Capacity Building, and Planning, Research and Statistics Directorates, was themed: “Compliance with the Provisions of the NOGICD Act 2010: The Path to Industrialisation.”

Opening the session, Acting Director of Monitoring and Evaluation, Mr. Omomehin Ajimijaye, said the Lagos engagement underscored the Board’s determination to extend Nigerian content enforcement beyond the upstream sector and the Niger Delta.

He conveyed the appreciation of the Executive Secretary, Engr. Felix Omatsola Ogbe, describing participants as strategic partners in advancing Nigeria’s industrialisation agenda.

Ajimijaye outlined four key objectives of the workshop: deepening stakeholders’ understanding of the NOGICD Act; clarifying statutory reporting templates; addressing compliance challenges unique to the midstream segment; and strengthening collaboration between the Board and operators.

He emphasised that stakeholder feedback would be crucial in achieving the Board’s target of raising Nigerian content participation to 70 per cent.

Director of Capacity Building, Engr. Abayomi Bamidele, reminded participants that the Act mandates operators and contractors to prioritise Nigerian employment and training. He noted that projects or contracts valued at $1 million and above must submit an Employment and Training Plan for Board approval.

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Bamidele highlighted the NCDMB Field Readiness Initiative, which aims to bridge workforce gaps caused by retirements and migration of skilled professionals, while opening opportunities in the oil and gas sector to OND, HND and BSc holders through the NOGIC Joint Qualification System (JQS) portal.

He reiterated that NCEC processing remains completely free, middlemen are prohibited, and only company-owned equipment — not leased assets — qualifies for certification.

Delivering a technical presentation, Supervisor of the Project Certification and Authorisation Directorate, Mr. Elvis Ogede, stated that every operator must submit a Nigerian Content Plan in line with Sections 7 and 8 of the Act.

He explained that operators are required to engage the Board at five mandatory stages: submission of the Nigerian Content Plan; approval of selective or sole-source contracting strategies; review of invitation-to-tender documents; participation in bid openings; and submission of technical and commercial evaluation reports before issuance of the Nigerian Content Compliance Commitment (NCCC).

Ogede clarified that the NCCC is not a certificate of past compliance but a binding commitment subject to monitoring.

He further warned that Memorandum of Association can no longer substitute for valid NCEC, expired NCECs are disqualifying, and service-specific certification is mandatory.

Deputy Manager, Midstream Monitoring Division, Mr. Damola Aderibigbe, outlined the Board’s monitoring framework, which spans performance, compliance and intervention monitoring across upstream, midstream and downstream operations.

He disclosed that companies are required to submit 14 statutory reports, noting that late or incomplete submissions remain the most common compliance breaches.

Aderibigbe also stressed that engineering firms must possess corporate accreditation from the Council for the Regulation of Engineering in Nigeria (COREN), not merely individual staff certification.

He warned that non-compliance could result in remediation measures, suspension, legal action or project withdrawal, although he maintained that the Board’s objective is to enable business rather than create conflict.

Providing data insights, Supervisor of the Planning, Research and Statistics Directorate, Mr. Emmanuel Paulker, revealed that the NOGIC JQS portal has registered 406,000 individuals and 11,445 companies, including 115 operators. However, he noted that significant portions of the midstream sector are yet to register.

He added that 1,603 expatriate quota applications had been processed, with 1,417 approvals, generating 13,833 employment commitments. Paulker cautioned that companies must secure NCDMB approval before approaching the Federal Ministry of Interior for expatriate quota processing.

Closing the workshop, Supervisor of the Midstream Monitoring Division, Engr. Pius Waritimi, reiterated that compliance commitments are binding and encouraged stakeholders to engage proactively with the Board through the Nigerian Content Consultative Forum (NCCF) and Sectoral Working Groups.

The Lagos workshop marks a renewed push by the NCDMB to entrench compliance discipline within the midstream sector, as Nigeria intensifies efforts to deepen local participation and drive industrial growth in its oil and gas value chain.