BoI and NCDMB partner on $100 million content development fund

The Bank of Industry (BoI) and the Nigerian Content Development and Monitoring Board (NCDMB) have formalised a partnership to establish a $100 million content development fund aimed at boosting local participation in Nigeria’s oil and gas sector. The agreement reflects ongoing efforts to deepen indigenous involvement in the industry, promote value addition, and provide financing solutions to Nigerian businesses operating within the energy value chain.

Under the arrangement, BoI will provide the financial infrastructure and credit management expertise, while NCDMB will leverage its regulatory oversight and industry knowledge to ensure that the fund supports projects aligned with national local content objectives. The fund is designed to provide long-term financing, working capital, and project development support to Nigerian companies engaged in fabrication, engineering, services, and technology solutions within the oil and gas ecosystem.

Officials from both institutions emphasised that the partnership aims to create a more enabling environment for indigenous companies to expand operations, access modern technology, and scale capacity to compete with international players. By targeting critical aspects of the oil and gas value chain, the fund seeks to accelerate local content compliance, enhance job creation, and strengthen the economic impact of the petroleum sector.

The Bank of Industry highlighted that the fund will operate with clear eligibility criteria, transparent application processes, and structured repayment mechanisms to ensure sustainability. NCDMB added that the initiative will prioritise projects that demonstrate innovation, scalability, and potential for measurable impact on the industry’s local supply base. Both organisations agreed that proper monitoring and evaluation frameworks will be established to track fund utilisation, performance, and outcomes.

Industry observers noted that access to affordable and structured financing has been one of the major constraints for Nigerian firms seeking to increase participation in the oil and gas sector. The BoI-NCDMB fund is expected to bridge the financing gap, particularly for small and medium-sized enterprises, indigenous fabricators, and technology-driven service providers that have historically struggled to secure funding from conventional lenders.

The partnership also aligns with Nigeria’s broader strategy to maximise local content in the oil and gas industry, as mandated under the Nigerian Oil and Gas Industry Content Development Act. By providing dedicated capital for indigenous players, the fund encourages compliance with local content requirements, drives skill development, and ensures that more value is retained within the national economy.

According to BoI, the fund will support a variety of activities, including the establishment of fabrication yards, upgrading of local facilities, procurement of modern equipment, and capacity-building programmes for technical personnel. NCDMB emphasised that the fund will be strategically targeted to support sectors where domestic participation is low, but potential for growth is high, thereby enhancing overall competitiveness and industry sustainability.

Both institutions also highlighted the expected multiplier effect of the fund, noting that increased local participation will not only boost employment and technology transfer but also enhance government revenues through enhanced compliance and operational efficiency. By empowering Nigerian firms, the fund is expected to strengthen the resilience of the domestic supply chain and reduce dependence on foreign contractors and imported goods.

Executives from the Bank of Industry stated that this collaboration reflects the bank’s continued commitment to sectoral development, industrialisation, and support for enterprises that contribute to national economic growth. Similarly, NCDMB officials described the fund as a strategic intervention that will ensure Nigerian companies are better positioned to capture higher value from oil and gas projects, improve technical competence, and enhance competitiveness.

Industry stakeholders welcomed the announcement, describing the fund as a game-changer for local businesses. They noted that previous attempts to access large-scale financing were often hampered by high interest rates, stringent collateral requirements, and lack of sector-specific support. The $100 million fund, therefore, represents a targeted solution that addresses these challenges while promoting sustainable development in line with national policy goals.

The BoI-NCDMB collaboration is expected to set a precedent for similar partnerships in other strategic sectors, demonstrating how public institutions can leverage capital and regulatory frameworks to stimulate local industry growth. Both institutions committed to periodic reviews, stakeholder engagement, and transparent reporting to ensure that the fund achieves its intended objectives and delivers tangible results for Nigerian businesses and the broader economy.

By unlocking $100 million in dedicated financing, the partnership signals a renewed push toward increasing indigenous participation, strengthening the local supply base, and creating long-term economic benefits from the nation’s oil and gas resources. The initiative reinforces Nigeria’s commitment to local content development and represents a significant step in empowering domestic enterprises to play a leading role in the energy sector.