The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) have inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF), a new financing initiative designed to boost local participation and growth in Nigeria’s oil and gas service sector.
The $100 million equity financing scheme is aimed at providing long-term capital to indigenous oil and gas companies while offering an alternative to conventional debt financing.
The committee was inaugurated in Lagos by the Executive Secretary of NCDMB, Mr. Felix Ogbe, marking the commencement of the rollout of the equity financing window under the Nigerian Content Intervention Fund (NCI Fund).
According to the fund’s product framework, the NCEF is designed to reduce the cost of locally produced oil and gas services, create an additional revenue stream for NCDMB and attract more investors and lenders to financially viable Nigerian businesses.
“By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry.”
The fund has a total size of $100 million, with an obligor limit of $5 million per beneficiary. While NCDMB provides the funds, the Bank of Industry will serve as the fund manager.
Target beneficiaries include oil field service companies, oil and gas-related manufacturers, fabrication yards and other connected businesses, with the broader goal of promoting economic growth, job creation and wealth creation.
NCDMB estimated that the initiative could generate about 12,500 direct jobs and 7,000 indirect jobs within the sector.
The launch represents another milestone in the evolution of the NCI Fund, established under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to address financing challenges faced by indigenous oil industry companies.
Unlike previous NCI Fund products that provided debt financing, the Equity Fund introduces a new investment model by taking equity positions in qualifying businesses.
Speaking at the inauguration, NCDMB Executive Secretary Felix Ogbe charged members of the committee to conduct thorough assessments of companies seeking support and ensure that the fund achieves its objectives.
He stressed that the initiative should not be mistaken for a grant, noting that beneficiaries are expected to use the capital responsibly and fulfil the terms of the investment.
“Our top priority should be identifying people who will use the Fund properly and, most importantly, return our funds back to us so that we can continue the programme for other deserving beneficiaries, ” he said.
The Managing Director of BOI, Dr. Olasupo Olusi, described the initiative as a major milestone in the partnership between both institutions, which began nearly a decade ago through the $350 million Nigeria Content Intervention Fund.
He explained that the introduction of equity financing would address a major gap in the industry’s financial structure by supporting businesses that may not qualify for traditional loans.
“The next step, which I am very impressed with and very thankful to the NCDMB for thinking through with BOI, is the need to fill the finance gap with equity, ” he said.
Olusi expressed confidence that the fund would attract additional investment into Nigeria’s oil and gas sector while strengthening indigenous participation.
The Group Head, Equity Investments at BOI, Mr. Chike Chukwuelu, said the fund was created to support what experts describe as the “missing middle” — businesses with strong potential but limited access to conventional financing due to collateral challenges.
He added that the equity structure would allow closer monitoring of beneficiary companies, improve corporate governance and help businesses develop into sustainable industry players.
“What this also does is that we will now have more oversight in these companies because of the instrument that we’re using, and we can help them develop into sustainable companies, ” he said.
NCDMB Senior Technical Adviser, Austin Uzoka, said the Equity Fund provides an opportunity to achieve outcomes previous financing interventions could not fully deliver.
“The striking thing is that the fund is about doing things the other funds have not been able to accomplish, ” he said.
He added that the committee’s responsibility would be to provide strategic oversight, ensure prudent investment decisions and build a portfolio of companies capable of becoming major players in Nigeria’s oil and gas industry.
