Home News NCDMB Threatens Sanctions As It Tightens Grip On Midstream Operators

NCDMB Threatens Sanctions As It Tightens Grip On Midstream Operators

NCDMB Threatens Sanctions As It Tightens Grip On Midstream Operators

In Nigeria’s fast-expanding midstream oil and gas space, compliance is no longer optional, it is the price of staying in business.

The Nigerian Content Development and Monitoring Board (NCDMB) has issued a strong warning to operators, declaring that failure to comply with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 could result in project withdrawal, suspension and even criminal prosecution.

Speaking at a sensitisation workshop for midstream companies in Lagos, the Board made it clear that enforcement would be stepped up as it extends Nigerian content compliance beyond the upstream sector and the Niger Delta region.

Acting Director of Monitoring and Evaluation, Mr Omomehin Ajimijaye, said the engagement was part of a broader push to drive industrialisation and economic security through deeper local participation.

“We are not focused only on the upstream sector.

We are ensuring that our midstream and downstream stakeholders are fully carried along in the quest for Nigerian content value expansion,” he said.

The Board reaffirmed that obtaining the Nigerian Content Equipment Certificates (NCEC) attracts zero processing fees and warned that the use of middlemen in any transaction has been banned.

It also stressed that expired or misapplied certificates would lead to automatic disqualification from tenders.

Operators were reminded that any project worth $1 million and above must submit an Employment and Training Plan for approval.

Companies were also urged to register on the NOGIC JQS portal, which currently hosts over 406,000 individuals and 11,445 companies, although much of the midstream segment remains outside the system.

In a message, officials clarified that the Nigerian Content Compliance Commitment (NCCC) is not proof of past compliance but a binding promise that companies will be monitored against.

The Board further warned engineering firms that corporate COREN accreditation is mandatory and that companies must secure NCDMB approval before applying for expatriate quotas through the Federal Ministry of Interior.

Despite the tough stance, the agency described itself as a “business enabler”, encouraging early engagement and collaboration rather than conflict.

A statement signed by the GM Corporate Communications Division, Dr Obinna Ezeobi, noted, with Nigeria targeting 70 per cent local content, the Lagos workshop signals a decisive shift, one that places midstream operators squarely under the compliance spotlight.

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