Oil contracts: NCDMB moves to block middlemen, tighten certification rules

5 Min Read
  • NCDMB issues fresh guidelines to sanitise oil and gas contracting

  • Unqualified firms, middlemen face exclusion from industry contracts

  • New rules target fake documents, inflated capacity claims

The Nigerian Content Development and Monitoring Board, NCDMB, has rolled out new guidelines aimed at sanitising the oil and gas contracting process and eliminating unqualified firms from the sector.

The new rules are contained in the Nigerian Content Equipment Certificate Application Guidance Notes, released by the board as part of efforts to curb abuses, fast-track contracting processes and reduce Nigeria’s cost of oil production.

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The development was disclosed in a statement issued on Sunday by the General Manager, Corporate Communications Division of the NCDMB, Obinna Ezeobi.

According to the board, the guidance notes will take effect from December 2025 and form part of measures to implement the Presidential Directives on Local Content Requirements.

The NCDMB said the directives mandate the board to eliminate intermediaries and firms without demonstrable technical capacity from the oil and gas contracting value chain.

The board emphasised that possession of a valid Nigerian Content Equipment Certificate, NCEC, remains a core requirement for participation in oil and gas industry contracts.

It warned that misuse of NCECs has continued to undermine efficiency in the sector and contribute to delays in contract awards.

According to the board, unmerited possession or misapplication of NCECs during tendering and bid evaluation has enabled the entry of unqualified intermediaries into the contracting process.

The NCDMB explained that the new guidance notes were designed to address widespread abuses, including multiple certificate applications not matched to actual capacity, submission of forged documents, under-declaration of personnel, and claims of non-existent offices or equipment.

It added that the document would also enable faster review and approval of applications submitted by genuine service companies by clearly outlining all requirements for a credible application.

The board noted that NCECs are issued across eight categories, including manufacturing, fabrication and construction, services and support, procurement and supplies, and consultancy services.

Service companies were advised to clearly define their service offerings and provide verifiable supporting evidence when applying through the NCEC application portal.

The NCDMB stressed that it does not charge any fees for the application, processing or approval of NCECs and warned applicants against using agents or third parties.

It stated that the use of middlemen in submitting applications is prohibited and that companies would be held fully responsible for all claims and documents submitted using their login credentials.

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The board also ruled out the transfer of certificates, noting that NCECs are not transferable and cannot be shared among subsidiaries or partners using the same facilities or assets.

Service providers were further warned to apply only for certificates aligned with their core competencies, as speculative applications contribute to delays and may attract sanctions.

The NCDMB added that companies applying for multiple certificates must demonstrate sufficient assets, facilities, equipment and personnel, noting that verification visits would be conducted where necessary.

It clarified that NCECs are not issued in anticipation of future investments but are approved strictly based on existing and functional capacities.

Commenting on the new rules, the Executive Secretary of the NCDMB, Felix Ogbe, urged industry stakeholders to carefully study the guidance notes before submitting applications.

Ogbe warned that submission of forged or falsified documents constitutes a criminal offence and would attract legal consequences in addition to administrative sanctions.

He also disclosed that the board has set clear timelines for the review and processing of NCEC applications, adding that the application portal tracks all stages of the process.

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