Mkpoikana Udoma
Port Harcourt — The Nigerian Content Development and Monitoring Board, NCDMB, and the Nigerian Export-Import Bank, NEXIM, have disbursed about $42 million to Small and Medium Enterprises, SMEs, operating in Nigeria’s oil and gas services sector, as part of efforts to deepen local participation and stimulate indigenous capacity.
This was disclosed by Muhammed Z. Awami, Head of Specialized Business at NEXIM Bank, during a panel session at the .NCDMB Stakeholders’ Sensitization and Engagement Forum, held in Port Harcourt, Rivers State
The event, themed “Deepening Local Content through Certification, Compliance and Financing Support,” brought together regulators, financial institutions, and service providers across the oil and gas industry.
Awami explained that while the NCDMB Working Capital and Capacity Building Fund was initially set at $30 million, NEXIM had exceeded the amount to meet growing demand from indigenous players.
“Once you meet pre-disbursement conditions, we disburse the funds to you. After disbursement, we also monitor, sometimes jointly with NCDMB, to ensure the funds are utilized for the purpose they were given,” Awami stated.
He added that the fund was designed to provide flexible financing tailored to the needs of local oil service providers, helping them expand operations, access new markets, and enhance their competitiveness.
“The Working Capital and Capacity Fund is $30 million, but so far, we have disbursed about $42 million. We understand the challenges around collateral, so we’ve watered down the requirements without compromising the bank or the Board,” he said.
“We now accept assignments of receivables, insurance, and other instruments as collateral, making it easier for beneficiaries to access funds. Our approach is transactional — we structure the financing around the project so the loan becomes self-liquidating without the need for physical collateral.”
Earlier in his remarks, Engr. Felix Omatsola Ogbe, Executive Secretary of NCDMB, represented by Dr. Osa Uchendu, Director of Finance and Personnel Management, said the engagement was designed to strengthen collaboration between regulators, banks, and indigenous service providers.
“This forum provides us with the opportunity to deliberate with stakeholders in the oil and gas industry and to create pathways for more Nigerians to actively participate in the sector,” Ogbe said.
“We are committed to transparency and efficiency in fund management, ensuring that every financing support drives measurable impact.”
Also speaking, Gabriel Yemidale, Group Head, Oil and Gas, Bank of Industry, BOI, said the Nigerian Content Intervention Fund, NCI Fund, which started in 2017 with N200 million, had grown to N300 million by 2023.
He emphasized that access to the fund requires compliance with NCDMB’s one percent contribution policy.
“Most times, people apply for loans without being contributors to the Nigerian Content Fund. To access these facilities, you must be a contributor, that one percent deducted from your IOC or NOC contracts qualifies you.”
He disclosed that BOI had created five funding windows, including community financing and contract financing, with single obligor limits ranging from N100 million to $5 million.
“The community financing fund, handled in partnership with FCMB, was initiated under the current NCDMB leadership to empower grassroots enterprises,” Yemidale said.
“There’s no bank guarantee required; all you need is your ISPO and a valid contract with an IOC. This is about helping local businesses play where the big players operate.”
The Port Harcourt engagement also featured presentations on the NCDMB Compliance Certificate System, the upgraded NCDF Payment Portal, and the unveiling of the new Nigerian Content Fund Clearance Certificate.
Panelists included Jefferson Tuantongha, General Manager, Monitoring and Evaluation Directorate, NCDMB; Engr. Bashir Ahmed, Supervisor, Projects Certification and Authorization; Engr. Mustapha Abdullahi, Supervisor, Capacity Building Directorate; Mohammed Z. Awami of NEXIM; Gabriel Yemidale of BOI; and Akintumide James, Head of Midstream Dealers, FCMB.
In her closing remarks, Fateemah Mohammed, General Manager, Nigerian Content Development Fund, NCDF, thanked participants for their contributions and reaffirmed NCDMB’s commitment to empowering local operators.
“We will continue to provide financial, technical, and institutional support to ensure Nigerian businesses thrive and dominate the value chain in the oil and gas industry,” she said.
