NCDMB Urges Companies, Business Entities to Take Advantage of NCDF
The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated its commitment to supporting indigenous businesses in the oil and gas industry, urging companies and business entities to take full advantage of the Nigerian Content Development Fund (NCDF). This call came during a two-day sensitization programme held in Lagos, where the Board engaged stakeholders on issues around compliance certification, the upgraded payment portal, and the revised community contractor financing scheme.
Turner Erefa, Manager of the NCDF, who represented Fateemah Mohammed, General Manager of NCDF and Treasury, explained that the sensitization session aimed to demystify various grey areas surrounding the fund. Erefa emphasized that the NCDF derives its primary funding from a one percent deduction remitted by companies operating in Nigeria’s upstream sector. These funds are domiciled with the Bank of Industry (BoI), with both BoI and NEXIM Bank serving as development partners to the Board.
According to Erefa, the NCDF is specifically designed to address the financial needs of indigenous service providers and other strategic players within the oil and gas value chain. The fund acts as a catalyst for the sector’s industrialization, offering targeted financial interventions to build local capacity, boost resource utilization, and promote asset acquisition, manufacturing, and loan refinancing.
He pointed out that refinancing options offered by the BoI come at competitive, low-interest rates, and are instrumental in helping companies service existing obligations while accessing new opportunities. Similarly, NEXIM Bank manages a distinct intervention fund tailored to women in oil and gas. This facility is meant for female managing directors and board members and provides support in the form of working capital, loan asset finance, and lease finance products.
Over the years, the NCDF has grown substantially. Initially seeded with $200 million from BoI, the fund has now expanded to $350 million. An additional $30 million was deployed to NEXIM Bank for capacity-building and working capital, along with a $20 million allocation dedicated to women-led enterprises in the sector. Erefa noted that the increase in fund size has been driven largely by strong loan repayment rates among beneficiaries.
Encouraging business owners to apply, Erefa emphasized the advantages of accessing single-digit interest loans, stating that 149 entities have so far been approved under the fund, with 78 disbursements completed. He added that 16 women-led businesses have already benefited from the women in oil and gas fund, and urged more female entrepreneurs to seize the opportunity.
He acknowledged the effectiveness of NEXIM’s working capital scheme and encouraged prospective applicants to take advantage of it. However, he also admitted that the process hasn’t been without its challenges. One of the recurring issues, he noted, is the delay in obtaining bank guarantees from commercial banks—a key eligibility requirement for BoI loans.
Erefa cited the effect of exchange rate fluctuations on fund accessibility. When the programme started, the equivalent of $10 million was about ₦1.5 billion, but with current exchange rates, that figure now translates to ₦15 billion, impacting bank capitalization and lending processes.
Low awareness remains a major challenge for the NCDF. Many eligible companies are unaware that they can access the fund, leading to low application rates and missed opportunities. Additionally, some entities face hurdles in meeting the eligibility criteria due to weak relationships with their banks or delays in submitting complete documentation. Other issues include economic uncertainty, poor cash flow, and lack of financial management skills among borrowers, all of which affect repayment and contribute to default and delinquency—issues that hurt both the borrowers and the integrity of the fund.
To address these issues, NCDMB is intensifying its sensitization campaigns, particularly targeting micro, small, and medium enterprises (MSMEs), as well as women in oil and gas who often face challenges accessing traditional finance options. The Board is also expanding its outreach to community contractors through the “Back to Creek” initiative, aimed at developing local talent and capacity in underserved regions.
Erefa assured participants that the Board is committed to improving the application process by simplifying access requirements and collaborating with partner institutions to ease collateral conditions. The Board also intends to share success stories of previous beneficiaries to inspire and motivate new applicants.
NCDMB plans to adopt more flexible financial solutions and will continue refining its funding model to ensure broader inclusivity. It also remains committed to tracking key performance metrics and gathering feedback from stakeholders to enhance efficiency and communication, while working toward greater financial inclusion and progress in the oil and gas sector.
