The Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with the Nigerian Export-Import Bank (NEXIM), has released approximately $42 million in loans to Small and Medium Enterprises (SMEs) aimed at enhancing local participation in the nation’s oil and gas industry.
This announcement was made in Port Harcourt during the NCDMB Stakeholders’ Sensitisation and Engagement Forum, themed “Deepening Local Content through Certification, Compliance and Financing Support.” The event convened major industry stakeholders and marked the official launch of the NCDMB Compliance Certificate — a critical regulatory document for companies operating in Nigeria’s upstream and midstream oil and gas sectors.
According to NEXIM’s Head of Specialized Business, the Working Capital and Capacity Fund, initially pegged at $30 million, was oversubscribed due to the high demand from indigenous oil service providers. He encouraged Nigerian-owned SMEs, particularly those providing services to International Oil Companies (IOCs) and National Oil Companies (NOCs), to take advantage of the fund to scale operations, expand internationally, and build technical capacity.
He further explained that the fund is designed with flexible financing mechanisms, utilizing alternative collateral such as receivables and insurance guarantees to ensure accessibility for firms that lack significant fixed assets. Once the eligibility and disbursement criteria are met, beneficiaries receive funding under the joint supervision of NEXIM and NCDMB to ensure effective utilisation. He emphasized that timely repayment is vital to maintain the revolving nature of the fund and extend its reach to other indigenous enterprises.
In his address, the Executive Secretary of NCDMB, represented at the forum, stated that the engagement serves as an avenue to tackle challenges hindering indigenous players while promoting broader industrial inclusion and competitiveness among Nigerian entrepreneurs.
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Similarly, a representative from the Bank of Industry (BoI) provided an update on the Nigerian Content Intervention Fund (NCI Fund), which has expanded from ₦200 million in 2017 to ₦300 million as of 2023. He clarified that eligibility for these financial interventions is limited to companies that contribute the mandatory one percent Nigerian Content Development (NCD) levy derived from contract proceeds.
The BoI official outlined five major funding windows under the NCI Fund, including a community-based financing window developed in collaboration with commercial banks like FCMB. This initiative, tailored for grassroots and smaller enterprises, offers up to ₦100 million per beneficiary with a three to six-month moratorium and minimal collateral — largely dependent on contract-backed security through Irrevocable Standing Payment Orders (ISPOs).
Other available facilities include:
- Contract financing with a single obligor ceiling of $5 million
- Refinancing facilities capped at $10 million
- Employment creation and SME empowerment programmes supporting indigenous contractors and enabling local firms to compete effectively with international players
Industry experts believe these funding frameworks could pave the way for a new wave of Nigerian-owned oil and gas service providers, particularly in sectors such as fabrication, logistics, marine operations, and engineering services across the energy value chain.
For MSMEs across Africa, Nigeria’s approach stands out as a model of how local content-driven financing can catalyse industrial expansion, stimulate job creation, and curtail foreign dominance within critical economic sectors like energy.
