FG begins $100m equity funding for oil firms

The Federal Government, through its Nigerian Content Development and Monitoring Board, on Tuesday signed a memorandum of understanding with the Bank of Industry to manage the $100m allotted to the newly established equity investment scheme.

At the ongoing Practical Nigerian Content Forum, themed ‘Securing Investments, Strengthening Local Content and Scaling Energy Production’, the Executive Secretary of the NCDMB, Felix Ogbe, formally announced the Nigerian Content Equity Investment Fund, tagging it as a new product of the Nigerian Content Intervention Fund.

At the opening ceremony of the PNC forum in Yenagoa, Bayelsa, Ogbe and the Managing Director of the Bank of Industry, Olasupo Olusi, signed the MoU for the management of the fund.

Speaking, the NCDMB boss explained, “As part of our efforts to provide affordable finance for local players in the industry, we have concluded arrangements to establish the $100m Equity Investment Scheme in partnership with the Bank of Industry. This is a new product in our Nigerian Content Intervention Fund.”

According to Ogbe, the fund would provide equity financing to high-growth indigenous energy companies. “This finance scheme will provide equity financing to high-growth indigenous energy service companies while diversifying our NCDF’s income base and strengthening local content development,” he stated.

Ogbe noted that the board had completed the framework for the issuance of the NCDF compliance certificate, saying, “This instrument will confirm companies’ compliance with the one per cent remittance obligations. The certificate will become effective on 1st January 2026 and will be required to get key permits and approvals from the board.”

He added that the Project 100 companies launched in 2019 had been successful, with plans to onboard a new set of companies in April 2026. “In 2019, the Board launched the Project 100 companies. I am happy to announce that following the successful implementation of approved interventions, we will host an exit plan by April 2026 and onboard a new set of Project 100 companies,” he said.

Ogbe disclosed that between the first and second quarters of 2026, the board would undertake a review of its seven current guidelines while finalising the legal and fiscal framework for the Nigerian Oil and Gas Park Scheme to usher in the commencement of operations at Odukpani and Emeyal 1 Parks.

He stated that the construction of the Oloibiri Museum and Research Centre had taken off with the execution of a contract between Julius Berger and OMRC Limited in December 2024, while mobilisation to the site was achieved in July 2025. The project is proposed to be delivered in 30 months.

Ogbe said Nigerian content levels across major projects monitored by the board had risen from 56 per cent to 61 per cent in the past year, describing it as a significant milestone.

He added that this year’s PNC introduces a new town hall meeting between the NCDMB and industry players to provide an open platform for conversations and feedback on Nigerian content issues.

“The work before us is significant, but so is the opportunity. Let us move forward with renewed purpose and the firm belief that Nigerian content is key to national development and industrialisation,” he said.

He added that the Nigeria Oil and Gas Industry Content Development Act, 2010, charges the board with the mandate to build the capacity of Nigerian companies and individuals so that they can participate actively in the oil and gas industry.

To drive this mandate, he said the board launched the 10-Year Strategic Roadmap, which is built on five strategic pillars and supported by four enablers, stressing that “this document continues to be our roadmap.”

The BoI MD, Olusi, said it was a pleasure to join NCDMB for the signing of the MoU establishing the Nigerian Content Intervention Fund Equity Investment Scheme.

While appreciating the NCDMB leadership for the partnership, shared vision, and unwavering commitment to strengthen indigenous participation across Nigeria’s oil and gas value chain, Olusi stressed that the collaboration marked a significant expansion of their long-standing relationship.

“Through the $100m NCIF Equity Investment Scheme, the Bank of Industry will deploy equity instruments to support high-interest Nigerian companies, complementing traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation. The fund is designed to catalyse multiple high-impact investments while maintaining strong governance and prudent risk management,” he said.

Olusi maintained that the structure of the fund also reflects BoI’s proven equity investment approach, anchored on rigorous due diligence, disciplined investment review processes, and robust post-investment monitoring.

”Our objective is mutual and is to ensure that deployed capital generates credible commercial returns while advancing national priorities in local content development, also in manufacturing expansion, in job creation, and of course, in technological transfer. We are proud to partner with NCDMB on this milestone initiative, which aligns fully with the board’s 10-year roadmap and Nigeria’s broader industrial development agenda under the leadership of President Bola Tinubu,” he submitted.

Source: https://punchng.com/fg-begins-100m-equity-funding-for-oil-firms/