By Sandra Chukwunyere
The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) have inaugurated the Investment Committee for the Nigerian Content Equity Fund (NCEF), a $100 million financing initiative designed to provide long-term capital support to indigenous oil and gas service companies.
The inauguration, which took place in Lagos, marks a significant step in efforts to deepen local content participation in Nigeria’s oil and gas industry by providing an alternative source of funding beyond conventional loans.
Speaking at the inauguration, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, described the fund as a strategic intervention aimed at helping qualified companies grow their operations through equity investments rather than debt financing.
Under the scheme, eligible companies can access investments of up to $5 million. The fund is financed by NCDMB, while the Bank of Industry serves as the fund manager.
According to NCDMB, the Equity Fund is targeted at oilfield service companies, manufacturers serving the oil and gas sector, fabrication yards, and other related businesses. Beyond supporting business expansion, the initiative is expected to promote economic growth, create jobs and increase indigenous participation across the industry value chain.
Projections indicate that the fund could contribute to the creation of about 12,500 direct jobs and an additional 7,000 indirect jobs through the expansion of beneficiary companies and related economic activities.
The Equity Fund is one of the financing products under the Nigerian Content Intervention Fund (NCI Fund), established pursuant to Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to address financing challenges faced by indigenous operators.
Unlike existing NCI Fund products, which provide debt financing with repayment obligations, the new fund introduces an equity-based model that allows businesses to access capital in exchange for ownership stakes.
Addressing members of the Investment Committee, Ogbe stressed the importance of transparency, accountability and thorough due diligence in selecting beneficiaries.
He cautioned that the Equity Fund should not be viewed as a grant, emphasizing that beneficiaries must deploy the capital responsibly and comply with the terms governing the investments.
According to him, the success and sustainability of the programme depend on supporting credible businesses with strong growth potential and sound management structures.
“Our priority should be to identify companies that will utilize the fund effectively and ensure that the investments generate value so that the programme can continue to support other deserving businesses,” he said.
Also speaking, the Managing Director and Chief Executive Officer of the Bank of Industry, Dr. Olasupo Olusi, described the inauguration as a major milestone in the long-standing partnership between BOI and NCDMB.
He noted that the collaboration began nearly a decade ago with the administration of the $350 million Nigerian Content Intervention Fund, through which numerous indigenous companies accessed financing to expand their operations.
Olusi explained that the introduction of an equity financing window fills a critical gap in the industry’s funding structure, particularly for businesses that may have strong growth prospects but are unable to secure conventional loans due to collateral requirements.
He expressed confidence that the initiative would attract additional investments into the sector and further strengthen indigenous capacity.
“We believe this fund will unlock new opportunities, attract more investment and support the continued growth of Nigeria’s oil and gas industry,” he stated.
Providing further insight into the initiative, the Group Head, Equity Investments at BOI, Mr. Chike Chukwuelu, said the fund was created to address what industry stakeholders often describe as the “missing middle” in business financing.
He explained that many promising indigenous companies struggle to access senior debt facilities despite having viable business models and growth potential.
According to him, the equity structure will enable fund managers to work more closely with beneficiary companies, helping them improve corporate governance, strengthen operations and build sustainable businesses.
The Senior Technical Adviser to the Executive Secretary of NCDMB, Engr. Austin Uzoka, noted that the Equity Fund offers an opportunity to achieve outcomes that previous financing interventions could not fully deliver.
He said the Investment Committee would provide strategic oversight, ensure prudent investment decisions and help build a portfolio of companies capable of becoming major players in the oil and gas industry.
The inauguration of the committee is expected to pave the way for the operational rollout of the fund and provide a fresh source of capital for indigenous companies seeking to expand their footprint in Nigeria’s oil and gas sector.
