The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) have launched a $100 million equity fund to provide long-term financing for indigenous oil and gas service companies, marking a new effort to strengthen local content and boost investment in the sector.
The Nigerian Content Equity Fund (NCEF) was unveiled alongside the inauguration of its Investment Committee, which will oversee the selection of qualified companies. Unlike conventional loans, the fund will provide capital through equity investments, giving eligible firms access to funding in exchange for ownership stakes.
According to the NCDMB, the fund will support oilfield service companies, manufacturers linked to the oil and gas industry, fabrication yards and other businesses within the sector. Each eligible company can access investments of up to $5 million.
The board said the initiative is expected to lower the cost of locally produced oil and gas services, help indigenous firms expand their operations, attract more private investment and create jobs. It estimates the programme could generate about 12,500 direct jobs and 7,000 indirect jobs.
Speaking at the inauguration, NCDMB Executive Secretary, Felix Omatsola Ogbe, urged the Investment Committee to ensure only credible businesses with strong growth potential benefit from the scheme. He stressed that the equity fund is not a grant and that beneficiaries must use the capital responsibly while meeting the agreed investment terms.
BOI Managing Director, Olasupo Olusi, described the fund as a major milestone in the bank’s partnership with the NCDMB, noting that it builds on years of collaboration under the Nigerian Content Intervention Fund, which has provided debt financing to indigenous oil and gas companies.
Olusi said the introduction of an equity financing option addresses a critical funding gap for businesses that struggle to secure commercial loans because they lack sufficient collateral, despite having viable projects.
Also speaking, BOI’s Group Head of Equity Investments, Chike Chukwuelu, said the fund is designed to bridge the financing gap for growing indigenous companies and attract more investment into Nigeria’s oil and gas industry.
The Nigerian Content Equity Fund is part of the Nigerian Content Intervention Fund established under the Nigerian Oil and Gas Industry Content Development Act to improve access to financing for local companies operating across the oil and gas value chain.
