June 21, 2024

Nigerian content intervention fund rises to N205.65bn in 5 years, opens credit access to indigenous oil, gas industry players 

Oredola Adeola

A total of $450 million (N205.65 billion) of the Nigerian Content Intervention fund (NCIF) has been disbursed by the Nigerian Content Development and Monitoring Board (NCDMB) to boost access to credit that often affects manufacturers, service providers, and other major players in the Nigerian oil and gas industry.


This was obtained by EnergyDay in a recent data released by the Board, illustrating the performance of the Nigerian Content Intervention (NCI) fund established in 2018, with the purpose of financing oil and gas companies to increase capacity and grow Nigerian content in the industry managed by Bank of Industry Limited (BOI) and Nigerian Export-Import Bank.


The broad objectives of the NCIF includes plan to increase indigenous participation in the oil and gas industry, build local capacity and competencies and to also promote the growth and development of Nigerian Content in activities connected with sectors of the Nigerian oil and gas Industry.


NCIF managed by BOI

NCI Fund has five product lines which are being managed by the Bank of Industry.

They include – Manufacturing Finance -$10m; Asset Acquisition Finance -$10m; Contract Finance -$5m; Loan Refinance -$10m and Community Contractor Finance – N20 million.


A breakdown of the facilities managed by the BOI showed that the Board has released a $10 million equity investment finance as a form of agreement with Waltersmith Refining and Petrochemical Company Limited for the construction of a 5,000 barrels per day modular refinery to be located at Ibigwe, Imo State.


EnergyDay gathered that the $10million Asset Acquisition Finance was used to acquire 30 per cent equity in the modular refinery, based on a Shareholders Agreement and the Share Subscription Agreement with the modular refinery.

There is also another $10m Manufacturing Finance initiated by the Board for oil and gas equipment manufacturers.

The Board in line with its Community Content Guidelines under the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act initiated another $20million in Community Contractor Finance.

The Community Contractor finance was aimed at promoting the participation of genuine community contractors in oil and gas projects and integration of communities in the industry value chain as part of the strategy to grow the local economy and promote peace in the communities.

The loan was disbursed directly to qualifying companies by the Bank of Industry (BoI) and expected to be repaid within five years at eight percent interest rate. It was also expected to cater to manufacturing, project financing, and equipment purchase.


The Board also initiated $5million Contract Finance to provide access for registered contractors and vendors at very competitive terms and rates.

NCDMB also initiated a $5 million loan refinance package for beneficiaries.

The Board also initiated $300 million Nigerian Oil and Gas Parks (NOGAPs) extension funds which is managed by the Bank of Industry (BoI) for companies in the Nigerian oil and gas industry.

NCDMB had recently launched a $US50 million fund for NOGAPs manufacturing product line to incentivize companies that would operate in the Nigerian Oil and Gas Parks and engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.

$50million NCI funds for NOGAPS manufacturing product line managed by the BOI is expected to support oil and gas companies that would operate in the oil and gas parks developed by the Board in Bayelsa and Cross River State.




Two of the NCDMB facilities managed by NEXIM includes Working Capital and Capacity Building Funds and Women in Oil and Gas intervention fund.

The US$20 million facility managed through a fund agreement between NCDMB and Nigerian Export–Import Bank (NEXIM) was designated as the Women in Oil & Gas Intervention Fund.

The $20 million NCI Fund for women in oil and gas intervention funds was managed by Nexim Nigeria Import-Export Bank.

The scheme is an interventionist offshoot of the Nigerian Content Development Fund (NCDF), which is designed towards promoting the building and deepening of indigenous capacities and capabilities of women entrepreneurs/industrialists to fully participate in the Nigerian Oil and Gas Industry.

The second facility managed by NEXIM is the NCDMB and the Petroleum Technology Association of Nigeria (PETAN) US$30m Working Capital Scheme that is expected to support the operations of Nigerian Oil Service Providers against the adverse effects of both the COVID-19 pandemic and loss of contracts due to the low oil price.

The $30million Working Capital Fund is a form of on-lending to qualified Nigerian Oil Service Providers (NOSPs), who belong to a professional Association in the Nigerian Oil & Gas industry recognized by NCDMB – either PETAN or the Oil & Gas Trainers Association of Nigeria (OGTAN).

The mandate of NEXIM and NCDMB on the fund is towards the promotion and development of Services-related companies to effectively compete domestically and internationally, especially against the backdrop of the African Continental Free Trade Agreement (AfCFTA).