The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI), has unveiled a $100m funding for oil and gas projects in Nigeria.
The development follows the inauguration on Friday of the Investment Committee of the Nigerian Content Equity Fund (NCEF), in Lagos.
According to a statement by Obinna Ezeobi, GM Corporate Communications Division, NCDMB, the fund will “avail long-term financing to service companies and provide access to funds in exchange for equity rather than traditional debt instruments.”
The committee, inaugurated by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, “sets the stage for the rollout of the pioneering financing window under the Nigerian Content Intervention Fund (NCI Fund). ” the statement disclosed.
The statement said the underlying goal of the NCEF is to reduce per-unit cost of oil and gas products and services locally, create an additional source of income for NCDMB, and play a catalytic role in attracting other investors and lenders to financially viable organizations. “By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry,” the statement further read.
The statement disclosed that while the fund’s obligor limit expected to be provided by NCDMB is $5million, the Bank of Industry serves as the Fund Manager.
“The target beneficiaries are oil field service companies, manufacturers connected to the oil and gas sector, fabrication yards, and connected sectors, with the primary goal being to promote economic growth, job creation, and wealth creation in Nigeria. The impact of the Fund on oil and gas projects could potentially create about 12,500 direct jobs and 7,000 indirect jobs, it was estimated.” the statement stated.
