The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Export-Import Bank (NEXIM) have jointly disbursed about $42 million in loans to Small and Medium Enterprises (SMEs) to boost local participation in the nation’s oil and gas industry.
Head of Specialized Business at NEXIM, Muhammed Z. Awami, disclosed this during a panel session at the NCDMB Stakeholders’ Sensitization and Engagement Forum held in Port Harcourt, Rivers State.
Awami noted that although the initial working capital for the NCDMB Working Capital and Capacity Fund was $30 million, the amount was exceeded to accommodate more Nigerian businesses seeking to participate in the oil and gas value chain.
The forum, themed “Deepening Local Content through Certification, Compliance and Financing Support,” brought together key industry stakeholders and featured the unveiling of the Board’s Compliance Certificate.
Awami urged indigenous oil service providers linked to International Oil Companies (IOCs) and National Oil Companies (NOCs) to take advantage of the fund, which offers flexible financing tailored to their business needs.
“Once pre-disbursement conditions are met, funds are released to beneficiaries. Afterward, we monitor utilization—sometimes jointly with NCDMB—to ensure the funds serve their intended purpose,” Awami explained.
“So far, we’ve disbursed about $42 million. We’ve also simplified collateral requirements, relying on tools like assignment of receivables and insurance to ease access while maintaining due diligence.”
He added that the bank structures financing around each transaction, making the loans self-liquidating without the need for physical collateral.
Representing the Executive Secretary of NCDMB, Felix Omatsola Ogbe, Dr. Osa Uchendu said the forum created a platform for meaningful engagement with industry stakeholders to promote greater Nigerian participation and business growth in the oil and gas sector.
Also speaking, Gabriel Yemidale, Group Head of Oil and Gas at the Bank of Industry (BoI), highlighted the growth of the Nigerian Content Intervention (NCI) Fund, which increased from N200 million in 2017 to N300 million in 2023.
Yemidale stressed the importance of compliance with the one percent Nigerian Content Development (NCD) levy, adding that only contributors are eligible to access the fund.
He further explained that the BoI operates five intervention funds, including community financing, developed in partnership with FCMB, with a single obligor limit of N100 million and a moratorium of three to six months.
“This initiative, championed by the current NCDMB Executive Secretary, is designed to empower grassroots enterprises and enable them to compete effectively in the industry,” Yemidale said.
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He added that other financing options include contract financing with a $5 million limit and refinancing facilities of up to $10 million, all aimed at promoting employment, empowering local businesses, and strengthening indigenous participation in Nigeria’s oil and gas ecosystem.
