NCDMB Recovers $100m Unremitted Funds From Oil Firms

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has disclosed that the board recovered close to $100million from oil and services companies in unremitted levy to the Nigerian Content Development Fund in seven years.
Wabote, who disclosed this at the opening of the 2021 Nigerian Oil and Gas Conference (NOG), in Abuja, said the money was recovered from the companies in the undisputed obligations from the Third-Party Forensic Audit of remittances between years 2010 to 2017.
He warned companies which are failing to comply with the provisions of the NOGICD Act that the agency was not helpless and would impose necessary sanctions on defaulters.
He stressed that in line with the law, priority would continue to be given to Nigerian companies in granting oil and gas licences, award of oil blocks, and other contracts in the industry.
“We continue to deploy the provisions of the NOGICD Act to fortify the oil and gas industry against these attacks such as Sections 3, 12, and 28 of the NOGICD Act which state that first consideration shall be given to Nigerian operators in the award of blocks and licenses, to Nigerian goods and services in the evaluation of bids, and for the employment and training of Nigerians in any project executed in the Nigerian oil and gas industry.
“Let me emphasize that this is the law of the land and the default mindset for any reputable local or international operator or service provider is to comply”, he added.
Wabote cautioned those companies which consider cost first in determining where projects are manufactured that after exporting jobs, they may return to find the environment less conducive for their operation.
“Great companies self-regulate to do the right thing within the confines of their business environment thus making their interface with agencies of government seamless.
“Local Content must not be seen as a cost centre but part of the business with several benefits to all nations, businesses, and investors involved in the practice.
“Let me highlight that we are not helpless or oblivious of what to do as a regulator when it comes to dealing with recalcitrant defaulters. We are very pragmatic and only resort to the deployment of our powers when all efforts to bring offending parties to compliance fail”.
He praised TotalEnergies for having faith in Nigeria by executing the bulk of the Egina project in-country thereby boosting Nigeria’s fabricating capacity from 60,000MT to 250,000MT.
He said the board would continue to support local companies despite the attainment of 35 percent local content in the industry.
“Let me also highlight that we have put in place intervention funds to serve as buffer to mitigate the impact of shocks from the oil and gas cycles.
“Section 104 of the Act created the Nigerian Content Development Fund and we have set up a total of $400million with $300million being managed by BOI and $100million being managed by NEXIM Bank”.