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130 indigenous companies benefit from $400m NCI fund as of July 2025- NCDMB

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Last updated: Wednesday, July 9, 2025 10:56:50 AM
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Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe
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says, “Oil firms’ low 1% NCDF remittance compliance limits indigenous applicants’ access to support fund”

Oredola Adeola

The Nigerian Content Development and Monitoring Board (NCDMB) has revealed that as of July 2025, approximately 130 companies have accessed a total of $400 million from the Nigerian Content Intervention Fund (NCIF), managed by the Bank of Industry (BOI) and NEXIM Bank, with FCMB as the Primary Finance Institute.

Engr. Felix Ogbe, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), represented by Mr. Mubarak Zuabair, FCA, General Manager, Finance & Accounts, confirmed this during the NCDF sensitization workshop held in Lagos on Tuesday.

The ES reaffirmed the Board’s commitment to expanding access to the $400 million Nigerian Content Intervention Fund (NCIF) by streamlining the application process and strengthening collaboration with partner banks, particularly on the Bank Guarantee requirements for collateral.

Advisors Reports’ check showed that the NCIF offers an interest rate of 8 percent across most loan categories, except the Community Contractor Finance Scheme, which carries a concessionary rate of 5 percent.

According to the Nigerian Content Intervention Fund compliance guidelines, eligible beneficiaries can access up to $10 million each for Manufacturing Loans and Asset Acquisition Loans, $5 million for Contract Finance Loans, another $10 million for Loan Refinancing, and up to ₦20 million under the Community Contractor Finance Scheme.

Engr. Ogbe, in his remark emphasized that the sensitization workshop was more than just an information session, describing it as a reaffirmation of the Board’s unwavering commitment to deepening Nigerian Content in the oil and gas industry while promoting transparency, accountability, and equitable access to funding opportunities for indigenous players.

He highlighted the importance of the Nigerian Content Compliance Certificate System, which was introduced to ensure all oil and gas projects adhere to Nigerian Content requirements, adding that it offers an objective benchmark for companies to demonstrate compliance, while also strengthening the Board’s regulatory oversight.

“We recognize that for the compliance system to function effectively, stakeholders must be well-informed. This workshop creates an avenue for practical engagement, clarification, and awareness,” he noted.

Ogbe also announced the successful upgrade of the Nigerian Content Development Fund (NCDF) remittance portal, stating that the revamped platform would simplify payment processes, enhance user experience, and allow for real-time compliance tracking.

He described the timing of the upgrade as crucial, given the expected surge in remittances following the implementation of compliance certification mechanisms.

Furthermore, he unveiled a restructured Community Contractors Finance Scheme, developed in partnership with FCMB and other banks.

The revised scheme, according to him, eliminated access barriers and encourages broader participation from host community contractors.

Mohammed Amami, Head of Specialized Business at NEXIM Bank, in his presentation during the workshop provided details on the NCDMB-NEXIM Oil and Gas Services Support Facility, stating that it now has a fund size of $30 million, with contributions from both NCDMB and NEXIM.

He said, “The single obligor limit is set at $1 million. Interest rates are 5% per annum for USD loans and 8% for Naira loans.

“The facility has a tenor of up to 3 years, including a maximum moratorium of one year, and targets low-end assets and equipment required for executing oil and gas service contracts for IOCs and NOCs.

“It is designed to improve the operational capacity and financial viability of qualified Nigerian Oilfield Service Providers (NOSPs).

Amami stated that the Women in Oil and Gas Intervention Fund, has a dedicated fund size of $20 million.

He said that the terms mirror the standard facility, single obligor limit of $500,000 and interest rate of 5% (USD), 8% (Naira) and a tenor of up to 3 years with a one-year moratorium.

“This intervention targets female-led and female-owned businesses providing oil and gas services, including oilfield and office supplies, environmental management, logistics, catering, security, leasing, and training.

“Eligible companies must meet at least one of the following criteria: minimum 51% ownership by women, at least 50% of top management staff are women and female CEO with a minimum 40% equity ownership,” Head of Specialized Business at NEXIM Bank said.

Akintomide James, Head of Midstream & Dealers at FCMB, disclosed during his presentation that the bank has secured a ₦50 billion wholesale lending facility from the Nigerian Content Development and Monitoring Board (NCDMB).

He said, “This facility is specifically targeted at supporting community contractors, reinforcing FCMB’s commitment to building a more inclusive and resilient industry.

He explained that the intervention is geared towards enhancing local capacity, competencies, productivity, and job creation by closing long-standing funding gaps that hinder indigenous contractors.

“The bank is deploying the facility through flexible options such as Local Purchase Order (LPO) financing and invoice discounting, offering fast, efficient loan processing, deep sector expertise through FCMB’s dedicated Oil & Gas Desk, and personalized support via a dedicated relationship manager.

“Eligibility criteria for accessing the facility include being an indigenous company registered with the Corporate Affairs Commission (CAC), holding all required industry permits, and having satisfactory credit reports,” Head of Midstream & Dealers at FCMB noted.

Mrs. Fateemah Mohammed, General Manager, Nigerian Content Development Fund (NCDF)/Treasury, outlining both progress and challenges of the NCDF, stated that the fund remains focused on maximizing the utilization of Nigerian resources, including materials, services, and assets in the oil and gas sector.

She confirmed that the Bank of Industry (BOI) and NEXIM Bank serve as the fund managers.

Mohammed said, “Initially, BOI managed a $200 million facility, which was later expanded to $350 million, covering five core loan products.

“An additional $30 million was earmarked for PETAN product lines (working capital and capacity-building loans), while $20 million was dedicated to the Women in Oil and Gas Intervention Fund.

“As of July 2025, 256 applications were received under the BOI scheme. Of these, 149 were approved, but only 78 applicants received disbursements totaling $348.296 million (₦48.289 billion).

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The disbursement breakdown includes:

38 companies for Asset Acquisition: $205.669 million and ₦22.115 billion

26 companies for Loan Refinancing: $117.898 million and ₦15.981 billion

11 companies for Contract Financing: $24.729 million and ₦2.632 billion

3 companies for Manufacturing: ₦7.561 billion

“Notably, no disbursement was made under the Community Contractor Finance Scheme, due to contractors’ inability to meet the disbursement conditions, particularly with respect to collateral provision and completion of required documentation.

“Explaining the disbursement pattern under the NEXIM Bank-managed fund, 279 companies applied for support (valued at ₦18.635 billion and $207.784 million).

She said, “Only 57 companies met eligibility criteria, receiving $34.175 million and ₦7.054 billion. Of these: 53 companies accessed working capital loans: $32.204 million and ₦7.054 billion and only 4 companies benefited under the Women in Oil and Gas scheme: $1.970 million.

Mrs. Fateemah Mohammed, General Manager of the Nigerian Content Development Fund (NCDF)/Treasury, outlined several critical challenges affecting the effective disbursement and utilization of the Nigerian Content Intervention Fund (NCIF), despite the notable progress made.

She expressed concern that available funds for the various loan products remain limited, creating a supply gap amid rising demand.

“More importantly, she pointed out low compliance with the mandatory 1% NCDF remittance by oil and gas companies, which has disadvantaged the majority of applicants who rely on the fund for business support.

She noted that some regulatory frameworks have restricted the flexibility of the fund to respond promptly and effectively to the needs of potential beneficiaries, attributing some of the issues to overlapping institutional responsibilities and lack of concurrence within the NCDMB system.

Mrs. Mohammed emphasized the need for increased public awareness, stating that many eligible Nigerian companies and individuals are unaware of the fund’s existence, purpose, and opportunities it presents.

She said, is particularly true for community contractors and women-owned businesses, resulting in low application rates from these key target groups.

She further explained that even among eligible applicants, several missed out on accessing the fund due to challenges such as inability to secure Bank Guarantees from commercial banks; Incomplete documentation, which hindered further processing of loan applications; High collateral valuation requirements, which disqualified otherwise eligible beneficiaries.

She cited economic uncertainty, which has affected borrowers’ repayment capacity, even with the relatively low interest rates of 5% and 8%.

She also highlighted limited financial literacy and management capacity among borrowers, which has led to loan defaults and negatively impacted the overall sustainability of the fund.

The NCDMB, in response to these challenges, has pledged to simplify the access requirements in collaboration with its partner banks.

The Board stated that plans are underway to design a more robust and user-friendly application process, reduce documentation bottlenecks, and review collateral conditions, especially the rigid demands around Bank Guarantees.

 

 

 

 

 

 

 

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