In a move to provide a new financing solution to the Nigerian oil and gas service sector, and accelerate local content growth, the Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) on Friday in Lagos inaugurated the Investment Committee of the Nigerian Content Equity Fund (NCEF) – a groundbreaking $100 million financing product designed to avail long-term financing to service companies and provide access to funds in exchange for equity rather than traditional debt instruments.
The committee was inaugurated by the Executive Secretary of NCDMB, Felix Omatsola Ogbe, setting the stage for the rollout of the pioneering financing window under the Nigerian Content Intervention Fund (NCI Fund).
According to the product paper, the underlying goal of the Nigerian Content Equity Fund (NCEF) is to reduce per-unit cost of oil and gas products and services locally, create an additional source of income for NCDMB, and play a catalytic role in attracting other investors and lenders to financially viable organizations. “By providing access to equity financing, the NCEF will enable service companies to expand and increase their market share, which will contribute to the growth of the Nigerian oil and gas industry,” the paper further read.
