By Peace Udugba
The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) have inaugurated the Investment Committee for the $100 million Nigerian Content Equity Fund (NCEF), a landmark financing initiative aimed at strengthening indigenous participation in Nigeria’s oil and gas industry.
The committee was inaugurated on Friday in Lagos by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, marking the rollout of a pioneering equity financing window under the Nigerian Content Intervention (NCI) Fund.
Unlike conventional loan facilities, the NCEF is designed to provide long-term financing to qualified oil and gas service companies in exchange for equity investments, enabling businesses to expand without relying solely on debt financing.
According to NCDMB, the fund has a total size of $100 million, with a maximum investment limit of $5 million per beneficiary. While the Board is providing the capital, the Bank of Industry will serve as the fund manager.
The initiative targets oilfield service companies, manufacturers linked to the oil and gas value chain, fabrication yards and other related businesses. It is expected to stimulate economic growth, create wealth and generate about 12,500 direct jobs and 7,000 indirect jobs across the sector.
Speaking during the inauguration, Ogbe urged members of the investment committee to conduct thorough due diligence and ensure that only credible companies with viable business models benefit from the scheme.
He stressed that the Equity Fund is not a grant, warning that beneficiaries must utilise the investment responsibly and comply with the agreed terms of the equity financing.
“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,” Ogbe said.
The Managing Director of the Bank of Industry, Dr. Olasupo Olusi, described the inauguration as a significant 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 hundreds of indigenous oil and gas companies have accessed financing to expand their operations.
Olusi explained that introducing an equity financing window fills a critical gap in the industry’s financing structure by supporting businesses that may not yet qualify for traditional bank loans.
He expressed confidence that the initiative would attract additional investment into Nigeria’s oil and gas sector while deepening local participation.
