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What Is NCEC?

What is NCEC?

What is NCEC?

The Nigerian Content Equipment Certificate (NCEC) is a certification issued by the Nigerian Content Development and Monitoring Board (NCDMB) to verify that certain categories of equipment used in the Nigerian oil and gas industry meet specific local content requirements. The NCEC is part of Nigeria’s broader strategy to enhance indigenous participation and capacity building within its oil and gas sector, as mandated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.

Key aspects of the NCEC include:

1. Local Content Requirements: The certificate ensures that equipment used in the oil and gas sector satisfies stipulated local content thresholds. This aims to promote the utilization of goods and services produced locally in Nigeria, thereby reducing reliance on imports and stimulating economic growth through local industry participation.

2. Certification Process: Companies seeking the NCEC must undergo a certification process administered by the NCDMB. This process involves demonstrating compliance with specified local content criteria, such as the percentage of locally manufactured components or assembly performed within Nigeria.

3. Benefits to Local Industry:  By incentivizing the use of locally produced equipment, the NCEC supports Nigerian businesses, particularly Small and Medium Enterprises (SMEs), in accessing opportunities within the oil and gas industry. It fosters job creation, enhances skills development, and promotes technology transfer within the country.

4. Sectoral Development: Compliance with NCEC standards contributes to the overall development and competitiveness of Nigeria’s oil and gas sector. It encourages innovation and investment in local manufacturing capabilities, ultimately strengthening the sector’s resilience and sustainability.

 

In Nigeria, the promotion of indigenous participation in various sectors of the economy has been a longstanding priority. One significant initiative towards achieving this goal is the Nigerian Content Equipment Certificate (NCEC). This certificate, issued by the Nigerian Content Development and Monitoring Board (NCDMB), plays a crucial role in bolstering local content in the oil and gas industry, among others. This article explores the essence, benefits, and implications of the Nigerian Content Equipment Certificate in Nigeria’s economic landscape.

Key Objectives and Benefits

1. Promotion of Local Manufacturing: By requiring equipment to meet local content specifications, the NCEC encourages local manufacturing and assembly of goods. This reduces dependency on imports and strengthens Nigeria’s industrial base.

2. Job Creation and Skill Development: The certification process stimulates job creation opportunities in manufacturing, assembly, and related industries. It also promotes skills development as local companies strive to meet the required standards.

3. Economic Empowerment: Through the NCEC, Nigerian businesses, particularly Small and Medium Enterprises (SMEs), gain access to opportunities previously dominated by foreign firms. This fosters economic empowerment and contributes to the overall growth of the economy.

4. Enhanced Sectoral Competitiveness: Compliance with NCEC standards enhances the competitiveness of Nigerian firms bidding for contracts in the oil and gas sector. It also improves the sector’s resilience by diversifying supply chains and reducing vulnerabilities to external shocks.

 

How to Process NCEC Registration

Nigerian Content Equipment Certificate Registration (NCEC) is the certificate issued to manufacturers and OEMs that commit to and or set up a factory for the purpose of manufacturing or assembling components, spares, equipment, systems and packages which are utilized in the Nigerian oil and gas industry

NCEC is a criterion in the Technical Evaluation of bids in the Nigeria Oil & Gas Industry. Under Section 12 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, priority considerations are given to Manufacturers and OEMs possessing NCEC during the contracting process.

REQUIREMENTS

This is divided into two categories

  1. STATUTORY
  2. NON-STATUTORY

 STATUTORY

CAC CERTIFICATE AVAILABLE

FORM CO2 AVAILABLE

FORM CO7 AVAILABLE

DPR CERTIFICATE AVAILABLE

TAX CLEARANCE CERTIFICATE AVAILABLE

VAT/TIN CERTIFICATE AVAILABLE

ISPON PLEASE PROVIDE COST

GROUP LIFE ASSURANCE AVAILABLE

MEDICAL RETAINERSHIP AVAILABLE

AUDITED ACCOUNT AVAILABLE

NON-STATUTORY

Letter of Application

Completed template for category applied for

OEM

Other Countries for OEM

List of equipment/component supplied to oil & gas within the last 10 years

Cost of equipment/component supplied to oil & gas within the last 10 years

Name of Manufacturer or its representative in Nigeria

Schedule of location of manufacturing/assembly activities in Nigeria/, provide title/lease agreement where applicable

Schedule of equipment/component to be manufactured/assembled and business plan

Proposed investment cost

Percentage of Local Content

Expatriate quota

Evidence of domiciliation

Certificate: Certificate of Registration will be issued after satisfactory compliance

Duration: 1 Month.

 

We at SOW Professional offer a range of tax and accounting solutions for Small & Medium Enterprises (SMEs and Established Corporate businesses).

We would be glad to assist you on how to Process your NCEC Registration and other Nipex, JQS, DPR and other Oil & Gas Permit License

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