NCDMB and NEXIM Disburse $42m Loans to Local Oil Companies
Nigerian Content Development and Monitoring Board (NCDMB) in conjunction with the Nigerian Export-Import Bank (NEXIM) has succeeded in disbursing $42 million loans to local companies operating in the nation’s oil and gas industry. The funding scheme is part of a broader strategic agenda for increasing local content, raising capacity, and fostering value retention within Nigeria’s petroleum industry.
The release comes under the NCDMB-NEXIM Bank Collaboration Fund, a funding mechanism specifically designed to empower domestic oil and gas service providers, manufacturers, and exporters. The project seeks to eradicate the long-standing finance gap which has held back the growth of indigenous firms, allowing them to compete with multinational operators fairly and take control of important segments of the upstream, midstream, and downstream value chains.
Speaking about the development, Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, said that the intervention represents an extension of the Board’s dedication to the goals of the NOGICD Act. He explained that the partnership with NEXIM Bank ensures local operators have access to sustainable funding that is particular to the unique needs of the oil and gas industry. The loans, both denominated in naira and dollars, are intended to stimulate industrial activity, job creation, and technology transfer, he added.
Engr. Ogbe reiterated that the fund is targeted at funding businesses involved in manufacturing, equipment fabrication, marine logistics, oilfield services, and export-oriented projects with local content orientation. He noted that previously, NCDMB had invested in some of these arrangements with financial institutions such as Bank of Industry (BOI) and Nigerian Export-Import Bank, creating avenues for indigenous firms to access funds at single-digit interest rates.
The NEXIM Bank Managing Director, Abubakar Bello, described the $42 million release as a reiteration of the bank’s irreconcilable commitment to the growth of Nigeria’s export and industrial capacity. In his words, NEXIM’s collaboration with the NCDMB is a strategic attempt to infuse liquidity into indigenous firms in the oil and gas services industry, thus enabling them to increase operations, source technology, and explore export-oriented ventures.
Bello further added the partnership shows the dedication of the government towards establishing a more resilient, inclusive energy sector where local businesses can grow, innovate, and assume an important position in the GDP of the country. He assured the initiative will improve the non-oil export base of Nigeria while positioning local content as a primary driver of industrial growth.
The $42 million disbursement is a landmark for the quest for domestication of the oil and gas sector and indigenous capacity development. In bridging the funding gap that typically limits local participation, the NCDMB-NEXIM Fund not only empowers Nigerian business entities but also supports the country’s vision to be economically self-sufficient, sustainable, and diversified in the long term with the oil and gas industry.
