In a strategic move to transform financing in Nigeria’s oil and gas service sector, the Nigerian Content Development and Monitoring Board (NCDMB), in partnership with the Bank of Industry (BOI), has inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF), a $100 million initiative designed to drive local content development through equity-based financing.
The inauguration, held on Friday in Lagos, was led by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, marking a major step toward deploying a new financing window under the Nigerian Content Intervention (NCI) Fund.
Unlike traditional loan facilities, the NCEF is structured to provide long-term funding to qualified service companies in exchange for equity, rather than debt. The initiative aims to ease the financing burden on indigenous firms, reduce operational costs in the oil and gas value chain, and attract additional investments into the sector.
According to the fund’s product framework, the NCEF is expected to boost the capacity of local service providers, enabling them to scale operations, increase market share, and contribute meaningfully to industry growth. The fund also seeks to generate additional revenue streams for NCDMB while catalyzing broader investor participation.
The fund has a total size of $100 million, with an obligor limit of $5 million per beneficiary. While NCDMB provides the capital, BOI will serve as the fund manager.
Target beneficiaries include oilfield service companies, manufacturers linked to the oil and gas sector, fabrication yards, and other related industries. The initiative is projected to create approximately 12,500 direct jobs and an additional 7,000 indirect employment opportunities across the value chain.
Speaking at the inauguration, Ogbe emphasized that the equity fund is not a grant scheme, warning that beneficiaries must demonstrate accountability and ensure returns on investment.
“Our priority is to identify credible businesses that will deploy these funds effectively and, most importantly, ensure returns so the programme remains sustainable for future beneficiaries,” he stated, urging the committee to apply strict due diligence in selecting participants.
On his part, the Managing Director of BOI, Dr. Olasupo Olusi, described the development as a critical milestone in the evolution of the NCI Fund. He noted that the new equity window builds on nearly a decade of collaboration between BOI and NCDMB, which previously facilitated the disbursement of over $350 million in debt financing to indigenous firms.
Olusi explained that the introduction of equity financing addresses a longstanding gap in the sector, particularly for companies unable to meet collateral requirements for traditional loans.
“Equity financing offers a different class of financial instrument that can support businesses with strong potential but limited access to conventional debt. This fund will attract additional investments and strengthen indigenous participation in the industry,” he said.
Further insights were provided by BOI’s Group Head of Equity Investments, Mr. Chike Chukwuelu, who described the fund as a solution to the industry’s “missing middle” — companies that are viable but lack access to large-scale financing.
He noted that the equity model would also allow fund managers to maintain closer oversight of beneficiary companies, improve governance structures, and support long-term sustainability.
“This approach enables us to actively support these companies as they grow into stronger, more resilient businesses,” he added.
Also speaking, Senior Technical Adviser to the NCDMB Executive Secretary, Engr. Austin Uzoka, said the fund represents a bold attempt to achieve outcomes previous financing interventions could not fully deliver.
“The striking thing about this fund is its potential to accomplish what earlier interventions could not. The committee’s role is critical in ensuring sound investment decisions and building a portfolio of companies that can evolve into major industry players,” he said.
The launch of the NCEF signals a shift toward more innovative financing mechanisms in Nigeria’s oil and gas sector, with stakeholders optimistic that it will deepen local participation, enhance competitiveness, and drive sustainable economic growth.
