By Sebasine Obasi

OIL and gas companies that default in the deduction and remittance of one percent of the value of contracts they executed in the upstream sector of the oil and gas industry will henceforth be disqualified from participating in tenders for new contracts.

In connection with this, the NCDMB is set to conduct a forensic audit of the oil industry to track and recover due payments to the Nigerian Content Development Fund (NCDF) held by some companies.

The Executive Secretary of the Board, Mr. Simbi Wabote, who stated this in Lagos at the Stakeholders Forum on NCDF Remittances, said that some companies were defaulting in their deduction and remittances on contracts they executed.

According to him, “The Board opened up the Fund for utilization from 2013, based on the approved operating model that segmented 70 percent of the Fund to financing Commercial interventions and 30 percent for developmental initiatives and activities carried out by the Board on behalf of the industry.

“Under Commercial interventions, the Fund was leveraged to provide 30 percent Partial Guarantee to commercial banks for loans granted to oil and gas service companies towards financing project execution, asset acquisition or facility upgrade. It also provided 50 percent interest rebate on performing loans. Beneficiaries of the Fund include Ladol, Starz and Vandrezzer.”