NCDMB Nigerian Content Compliance for Maritime Companies

The Nigerian Oil and Gas Industry Content Development Act, 2010 requires operators, contractors and vessel owners working in Nigerian oil and gas to give first consideration to Nigerian people, goods and vessels. The Nigerian Content Development and Monitoring Board (NCDMB) enforces this and reviews every qualifying project before it starts.

What the Nigerian Content Act Requires

Any company carrying out work connected to oil and gas operations, including marine support and crew services, must submit a Nigerian Content Plan to NCDMB before the project begins. The plan sets out how Nigerian personnel, materials and services will be used at each project stage.

Core Compliance Obligations for Vessel Operators

  • First consideration for Nigerian-flagged vessels before chartering a foreign one
  • A minimum share of Nigerian nationals in the vessel crew, rising over the life of a contract
  • Preference for Nigerian suppliers for provisions, spares and logistics where locally available
  • Registration on the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS)
  • Quarterly compliance reporting to NCDMB on local content performance

Nigerian Content Equipment Certification

NCDMB keeps a register of equipment recognised as locally manufactured or assembled. Operators are expected to prioritise this equipment over imports where a Nigerian-made equivalent exists and performs to the same standard. Importing equipment that has a certified local alternative without justification is a common compliance flag.

Step-by-Step: Meeting NCDMB Expectations on a New Contract

  1. Register the company and its vessels on NOGICJQS before bidding for any oil and gas related contract.
  2. Prepare and submit a Nigerian Content Plan describing crewing, procurement and training commitments.
  3. Source Nigerian crew and shore staff to meet the manning targets stated in the plan.
  4. Procure locally available goods and services from Nigerian-registered suppliers.
  5. Submit quarterly reports to NCDMB tracking actual local content performance against the plan.

Consequences of Non-Compliance

The Act gives NCDMB power to reject a Nigerian Content Plan, halt a project, or impose penalties tied to the value of the contract where a company fails to meet its commitments. Repeated non-compliance can also affect a company standing for future project approvals and its NOGICJQS registration.

PeaceRyde supports operators with Nigerian crew sourcing, locally registered logistics vehicles, provisioning from Nigerian suppliers, and guidance on structuring a Nigerian Content Plan that reflects what NCDMB actually expects to see.

Key Takeaways

  • A Nigerian Content Plan must be approved by NCDMB before a qualifying project starts.
  • Nigerian-flagged vessels and Nigerian crew get first consideration under the Act.
  • NOGICJQS registration is required before bidding for oil and gas contracts.
  • Quarterly reporting to NCDMB tracks actual performance against the approved plan.

Frequently Asked Questions

Who has to submit a Nigerian Content Plan?

Any operator, contractor or subcontractor carrying out work connected to oil and gas activity in Nigeria, including marine and crew support services, must submit a plan before the project begins.

Does the Cabotage Act overlap with NCDMB rules?

Yes. Cabotage requirements on Nigerian-flagged vessels and Nigerian crew feed directly into the Nigerian content targets that NCDMB monitors, so vessel operators usually manage both together.

Can a foreign supplier be used if no Nigerian alternative exists?

Yes, but the operator should document that a genuine search for a Nigerian alternative was made, since NCDMB expects evidence of first consideration rather than an assumption.

What is NOGICJQS?

It is the Nigerian Oil and Gas Industry Content Joint Qualification System, the register companies and vessels must join to be eligible to bid for oil and gas related contracts.