NCDMB Mandates New Certificate as Oil Sector Sees $400m Boost for Indigenous Contractors
Over 130 indigenous oil and gas companies have benefited from the $400 million Nigerian Content Intervention Fund (NCI Fund), as the Nigerian Content Development and Monitoring Board (NCDMB) intensifies efforts to deepen local participation through regulatory reforms and expanded access to finance.
The Board recently introduced the Nigerian Content Fund Clearance Certificate (NCFCC), now a mandatory requirement for bidding, project approvals, and certifications in the upstream oil and gas sector. The move aligns with Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which mandates a one percent contribution from contract values into the Nigerian Content Development Fund (NCDF).
Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, described the NCFCC and associated digital upgrades as part of a broader commitment to enhance transparency, compliance, and financial access for local contractors. Represented by Acting Director of Finance and Personnel Management, Mr. Mubaraq Zubair, Ogbe said the revamped NCDF portal would allow real-time verification of remittances and speed up approval processes.
“This programme reaffirms our commitment to deepen Nigerian content, enhance oversight, and open up financing opportunities for indigenous and community-based contractors,” Ogbe said at the Stakeholders’ Sensitization Workshop in Lagos.
Mr. Zubair also announced a revised Community Contractors Finance Scheme, developed with partners like FCMB, to bring financial services closer to host communities. He emphasized that the Board had eliminated major access barriers through strategic banking collaborations.
In a presentation on the policy, Dr. Ayebatonye Epemu, NCDMB’s Supervisor of Planning and Policy Development, noted that the certificate must now be obtained by all upstream vendors, consultants, and operators. Valid for 12 months, the NCFCC takes up to 14 working days to process via the NOGIC-JQS portal.
Financial institutions administering the NCI Fund and other Board-backed schemes shared progress at the event. Mr. Gabriel Yemilade, Group Head of Oil and Gas at the Bank of Industry (BOI), said the bank had disbursed $348.3 million and ₦48.2 billion to 79 companies in sectors such as marine logistics, modular refining, exploration, gas processing, and fabrication.
According to Yemilade, “The fund has evolved from an initial $200 million in 2017 to $300 million by 2020 due to increased demand. We are enabling local content through direct financial support.” He also highlighted BOI’s administration of the Community Contractor Scheme, which offers up to ₦100 million at eight percent interest, secured by valid contracts or standing payment orders.
Akintomide James, FCMB’s Head of Midstream and Dealers, detailed the bank’s role in managing a ₦50 billion facility under the revised Community Contractors Finance Scheme. FCMB offers a one-year loan tenor with a 90-day moratorium and flexible financing options, including LPO funding, invoice discounting, and asset acquisition. Applicants must be Corporate Affairs Commission-registered and present verified work orders or purchase orders.
James emphasized that FCMB, as the scheme's lead bank, will leverage its vendor financing experience to support grassroots contractors. He said the facility is specifically tailored to indigenous service providers executing contracts in the oil and gas value chain.
In a further boost to local participation, the Nigerian Export-Import Bank (NEXIM) launched two funding windows worth $50 million — a $30 million General Facility and a $20 million Women in Oil and Gas Programme. Mohammed Awami, Head of Specialized Business at NEXIM, said the scheme supports equipment leasing, contract execution, and working capital while promoting gender inclusion in the sector.
Despite growing disbursements, challenges persist. Fateemah Mohammed, General Manager of the NCDF (represented by Erefagha Turner), noted that between January 2024 and May 2025, disbursement volumes rose by 11.43 percent and naira value increased by 21.06 percent. However, only 30.47 percent of applicants met the criteria under BOI-administered schemes.