We will blacklist companies who defaulted in remittance — NCDMB
The Executive Secretary of NCDMB, Mr Simbi Wabote, stated this at a four-day Nigerian Oil and Gas (NOG) conference in Abuja
The Conference theme is ‘‘Promoting Investment and Collaboration in Nigeria’s Oil and Gas Industry”.
The NCDF is one per cent of every contract awarded to any contractor, sub-contractor, alliance partner or any other entity involved in any project, operation activity or transaction in the upstream sector of the Nigerian oil and gas industry
The money will be deducted at source and paid into the NCDF account.
Wabote said it was worrisome that some oil and gas firms have consistently defaulted in the remittance of the one per cent deduction, warning that such companies should be ready to face the full wrath of the law.
“As a further step to blacklisting the defaulting oil companies in order to serve as a deterrent to others.
“The Board is carrying out a forensic audit to determine the actual number of defaulters, how much is being owed and how much they are expected to have paid, and the report forwarded to the Economic and financial Crimes Commission (EFFC) for possible prosecution and debt recovery.
‘‘You cannot believe it that some companies including International Oil Companies (IOCs) indigenous firms and contractors and operators are not paying these funds.
“We are getting close to where we will hand them over to the relevant prosecuting agencies.
” To enhance accessibility to the fund, the Board in July 2016, had signed a Memorandum of Understanding (MoU) with Bank of Industry (Bol) to establish the NCIF,” he said.
Wabote said the Nigerian Content Intervention Fund (NCIF) provides long term facilities to contributors to NCDF on the basis of all-in 8 per cent interest rate.
” The NCIF is a component of the NCDF to meet the funding needs of indigenous manufacturers, service providers and other key players in the Nigerian oil and gas industry,” he said.
Wabote also disclosed that Nigerian companies have so far accessed $160 million out of the $200 million NCDF to build capacity.
He said the $200 million NCDF domiciled with the Bol has been a very successful scheme with only $40 million left.
He said the fund has helped the agency to support investment in collaborating with Bol and other stakeholders with the roll out of the $200 million NCIF.
He also stated that the fund has helped to establish modular refineries while the Board has been able to exit appropriation to become a self-funding agency of government.
‘‘ When I took on this responsibility, I discovered that NCDMB was getting one percent deduction from oil and gas contracts from operators but was still reliant on the Federal Government for appropriation and I felt something was not right. And I said we cannot work that way.
“So, in line with the former Minister of State for Petroleum Resources mandate that all agencies must be self-funding, we decided to key into that vision.
” And by 2018, we exited appropriation. At the moment they don’t discuss appropriation for NCDMB in the National Assembly.
“We only go through the approval process with government and the National Assembly for whatever money we need to spend.
“So, if we are self sustaining, we must go out there to recover to the last penny all monies owed the Board, otherwise, we may get to a point where we will not be able to pay our salaries or carry out our mandate as a regulator,” Wabote added.2
The 2019 NOG Conference and Exhibition recorded over 2,500 participants and 40 exhibitors.
