In this write up, we explained the Nigerian Content Equipment Certification (NCEC) purpose, registration requirements and categories as regards with NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD (NCDMB).
The Nigerian Content Development and Monitoring Board (NCDMB) was established by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act which came into effect on April 22, 2010 with sole aim of;
Contact for Company Local Content Plan/ Policy
What is a Nigerian Content Compliance Certificate (NCCC)?
One of the compliance documents to be used as an implementation guideline is the Nigerian Content Compliance Certificate, issued to operators in the oil and gas industry.
Read: DPR Permits, Categories, Cost & Requirements
What is NCEC?
Nigerian Content Equipment Certification (NCEC). It is a certificate issued by Nigerian Content Development and Monitoring Board (NCDMB) to companies in Nigeria in recognition of its commitment to the local content policy.
NCEC CERTIFICATION PURPOSE
Nigerian Content Equipment Certification (NCEC) are given to companies who Assemble, Manufacture or Calibrate equipment in Nigeria.
NCEC CATEGORIZATION
Nigerian Content Equipment Certification (NCEC) registration with NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD (NCDMB) are categorized as following;
NCEC Categories
– Fabrication and Construction (FC)
– Services and Support (SS) {Drilling, Solid Control, Well Testing and Services, etc)
– Manufacturing and Related Services (MS)
– Procurement and Supplies (PS)
– Consultancy Services (CS)
– Quality Control Inspection and Testing (QS)
– Construction and Movable Equipment (EC)
– Non Moveable Assets (DA)
Old Categories are below:
Category “A”,
Category “B”,
Category “C” and
Category “D”.
NCEC CATEGORY “A” with NCDMB
DESCRIPTION:
Nigerian Companies currently in the business of manufacturing/ assembling/coating/threading etc. of equipment/ components of equipment. Certificate is valid for 2 years from the date of issuance.
NCEC category “A” TENDER IMPLEMENTATION:
Given first and exclusive consideration in all tenders related to equipment for which NCEC was obtained. In the event that no service provider with category A submits bids, or supply capacity of all participating category A companies have been exhausted, category B companies shall be given consideration.
NCEC CATEGORY “B” with NCDMB
DESCRIPTION:
Companies that are OEM representatives with no in-country manufacturing/assembling facilities, but propose to assemble/manufacture/fabricate components and parts etc.
NCEC category “B” TENDER IMPLEMENTATION:
Category B vendors are given next consideration in the event that no vendor with Category A submits bids or supply capacity of all participating category A companies have been exhausted.
NCEC CATEGORY “C” with NCDMB
DESCRIPTION:
Companies that deploy equipment for operations such as dredging, survey, drilling, construction etc. Certificate is valid for one (1) year. Equipment are expected to satisfy at least 50% ownership by Nigerians.
NCEC category “C” TENDER IMPLEMENTATION:
In a situation where category C & D certified companies are into a tender, then Category C vendors shall be given first consideration. Category D vendors are to be considered only when the capacities of category C vendors have been exhausted.
NCEC CATEGORY “D” with NCDMB
DESCRIPTION:
Companies that deploy equipment for operations such as dredging, survey, drilling, construction, catering etc. Certificate is valid for one (1) year.
NCEC category “D” TENDER IMPLEMENTATION:
Category D vendors are to be considered only when the capacities of category C vendors have been exhausted or when there are no category C certified companies in the bid exercise.
Read: BPP Registration
NCEC REQUIREMENTS
1 State equipment for which application is being made
2 Typical usage of the equipment in the oil & gas industry
3 Name of original equipment manufacturer (OEM)
4 Country of origin of OEM
5 Other Countries where the OEM has manufacturing/assembling facilities
6 List equipment/components supplied to the Nigerian oil & gas industry in the past 10years
7 Cost of equipment/component/parts supplied to Nigeria in the past 10 years
8 Details and evidence of location for manufacturing/assembling activities in Nigeria, provide title/lease agreement for site, photo, layout and other documents (where applicable)
9 Details of activities already done, equipment procured or installed for establishment of the facility with cost implication (broken down to quarterly milestones and road map)
10 Details of outstanding activities for establishment of the facility with cost implication (broken down to quarterly milestones and road map)
11 Detailed investment plan with timelines and investment cost broken down to quarterly milestones (for those that are yet to start)
12 State current/proposed activity with regards to the equipment or component (i.e. manufacturing/ assembly/coating/fabrication etc.).
13 State proposed investment cost in USD
14 Details of equipment/component specification to be manufactured/assembled and business plan with respect to equipment/components (assembly/manufacturing/threading/coating/fabrication etc.)
15 For OEMs being promoted by IOCs, state roles and responsibilities of both parties
16 Name of manufacturer’s representative in Nigeria
17 Evidence of appointment as representative with responsibilities
18 Percentage local content value i.e. local value-add over total cost (see instruction below)
19 Total workforce (Nigerian vs foreign) and evidence of expatriate quota approvals (where applicable)
20 Any other information that will demonstrate domiciliation of activities
21 Contact details of officer in charge (Phone no, email etc)
FUNCTIONS OF NCDMB :
- To review, assess and approve Nigerian Content plans developed by operators
- To set guidelines and minimum content levels for project related activities across the oil and gas value chain.
- To engage in targeted capacity building interventions that would deepen indigenous capabilities- Human Capital Development, Infrastructure & Facilities, Manufactured Materials & Local Supplier Development.
- To grow and manage the Nigerian Content Development Fund
- To establish, maintain and operate the Joint Qualification System (NOGICJQS) in conjunction with industry stakeholders.
- To monitor Nigerian Content Compliance by operators and service providers. This will be in terms of cumulative spending, employment creation and sources of local goods, services and materials utilized on projects and operations.
- To award Certificate of Authorization for projects that complies with Nigerian Content provisions.
- To conduct studies, research, investigation, workshops and trainings aimed at advancing the development of Nigerian Content.
Read: Business/ Company Registration Service in Nigeria