The Nigerian Content Development and Monitoring Board and the Bank of Industry have rolled out a $100m equity fund to provide long-term financing to indigenous oil and gas service companies and boost local participation in the sector.
The development was disclosed in a statement signed on Sunday by the General Manager, Corporate Communications Division, NCDMB, Obinna Ezeobi.
The Nigerian Content Equity Fund, which is being provided by the NCDMB and managed by the BOI, has an obligor limit of $5m and is designed to provide financing to eligible businesses in exchange for equity rather than through traditional debt instruments.
The NCDMB and BOI inaugurated the Investment Committee of the Nigerian Content Equity Fund on Friday in Lagos, with the NCDMB Executive Secretary, Felix Ogbe, inaugurating the committee.
According to the statement, the fund is aimed at reducing the per-unit cost of oil and gas products and services locally, creating an additional source of income for the NCDMB, and attracting other investors and lenders to financially viable companies.
