The Nigerian Content Development and Monitoring Board (NCDMB) has announced that its $300 million intervention fund, placed with the Bank of Industry (BoI), has generated $30 million in interest. This interest is derived from loans extended to 70 oil and gas investors.
In a statement released on Tuesday, the NCDMB revealed plans to implement changes aimed at enhancing the efficiency and impact of the Nigerian Content Intervention Fund. This fund is a segment of the Nigerian Content Development Fund, established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, financed by a one percent deduction from every upstream sector contract in Nigeria’s oil and gas industry.
Minister of Petroleum Resources (Oil), Heineken Lopkobiri, recently commented on past management of the fund, noting that under former Executive Secretary Simbi Wabote, approximately $350 million was allocated to the BoI for investor loans, with claims of 90 percent non-performance. However, the NCDMB clarified that it had deposited $300 million, which the BoI loaned out, generating an additional $30 million from interest.
“The NCI Fund is the most successful fund scheme in the country, considering the faithful repayment by the beneficiaries and the growth of the fund,” the board stated. The BoI conducts quarterly project monitoring of loan recipients, while the NCDMB performs an annual review of the fund’s performance.
At the quarterly engagement forum in Lagos on Monday, NCDMB Executive Secretary Felix Ogbe highlighted the transformative role of the NCI Fund in the Nigerian oil and gas sector. He emphasized that the fund has empowered numerous Nigerian companies, bolstered local capacity development, and promoted sustainable growth.
Ogbe noted that the NCI Fund has significantly driven local content development in the oil and gas industry and its ancillary sectors. It has supported numerous projects, built capacities along the local value chain, and facilitated the growth of Nigerian companies.
Looking ahead, Ogbe indicated the board’s commitment to continuous improvement and innovation. “We will be proposing several strategic changes that will further enhance the impact and efficiency of the NCI Fund,” he stated.
This development underscores the NCDMB’s ongoing efforts to strengthen Nigeria’s local content in the oil and gas industry through strategic financial interventions and supportive policies.
