‘Nigerian Content Invention Fund doing the unimaginable’


    The Nigerian Content Intervention Fund has recorded huge success in the Oil and Gas Industry and Manufacturing companies in Nigeria.

    The General Manager, Nigerian Content Intervention Fund & Treasury Management, Obinna Ofili, stated the above while speaking on the success story of NCIF at the Nigerian Content Development and Monitoring Board, NCDMB, Capacity Building Workshop for  Media Stakeholders with the theme” Enhancing Media Competences to Support Nigerian Content in a Gas Economy held on Monday in Lagos.

    He spoke on a number of variables and factors that contributed to the success story, Simon Ugwu was there to capture it for Energy Frontier  

    Variants of Nigerian Content Intervention Fund

    Nigerian Content Intervention Fund with Bank of Industry $300 million NCDMB Research & Development Fund with Central Bank of Nigeria US$50 million Working Capital & Capacity Building Fund with NEXIM Bank US$30 million Women in Oil & Gas Fund with NEXIM Bank US$20 million Copyright © 2022 NCDMB. All rights reserved 5 NOGAPS Manufacturing Fund with Bank of Industry US$50 million NCDMB Direct Interventions through Equity Investments US$181 million N3 billion.

    The Federal Government is a Winner

    NCDMB is an agency of the Federal Government of Nigeria NCDMB deploys highest standards of passion, dedication and integrity in execution of its responsibilities NCDMB operates as a hybrid – a Public Sector institution regulating the Private Sector.


    The key take-away, therefore, is that the NCDF cannot be interpreted as the same as, or placed in the same basket with, the funds/revenues of the Board (investment income, appropriation proceeds when the Board was still Government-funded, grants, donations and loans). Seed funds for the Nigerian Content Intervention Fund is sourced from the Nigerian Content Development Fund, which is derived from section 104 of the NOGUCD Act 2010.

    Effective And Focused Leadership is critical Proper and effective leadership in government agencies breeds performance and proper partnership amongst Government-owned Institutions can work. NCDMB/Bank of Industry NCDMB/NEXIM Bank NCDMB/ Central Bank of Nigeria, TSA, Independent and Self-Sustaining Funds Creates Capacity and Success.


    Dedicated and Focused Teams

    NCDMB created Teams with requisite skills, hunger to deliver and dedication BOI and NEXIM Bank created well-resourced Departments for Oil & Gas

    Teams were duly incentivized and given adequate space and independence to work

    Both the Leadership and the Teams evolved suitable policies and Working templates

    Experienced and Skilled Counterparties

    NCDMB collaborated with Development Banks with focus on development and not just Profit NEXIM Bank is focused on financing companies to break into the Service sector in Africa and become big corporates Bank of Industry is the leading DFI in Nigeria with an NPL below 5

    Management Initiatives and Fund Drives

    Equity Investment in Critical Companies/ Sectors. NCDF Remittance Forensic Audit Recovery Drive and Money Creation and Fund Growth through Establishment of On-lending Platforms in Bank of Industry, BOI, and NEXIM Bank: Nigerian Content Intervention, NCI, Fund, working Capital & Capacity Building Fund, Women in Oil & Gas Fund and manufacturing Finance Product Line.



    Management Initiatives

    These are development of Nigerian Oil and Gas Parks, tying Expat Quota and other Derivatives to Full NCDF remittance compliance and capacity Building Programmes via Human Development Initiatives and  research & development Fund. Others are establishment of Gas Plant at Elebele, construction of NCT Hostel to service Conference Halls and entrepreneurship Schemes and Competitions. So also attraction of Industry Participation in Critical Projects, application of Capacity Development Initiatives and Sanction for Various Infractions.

    Journey to Self-Funding

    Accumulation of NCD Fund from 2010 – 2013.  Full Reliance on Government Appropriation up to 2013 and partial Funding via Appropriation from 2013 to 2017 and also Supplementary NCDF Financing for Shortfalls up to 2017 Self-Funding from NCDF and Associated Income from 2018 Zero Appropriation allocation by NASS in 2018.

    Investment as Catalyst For Manufacturing And Production

    Investments catalyzed local refining from the FIRST MODULAR REFINERY in Nigeria – WalterSmith

    Equity Investments have instigated local industrial activities in areas hitherto not in Nigeria, such as Base Oil, Industrial Paints and Pipes.

    NCI Fund compliments equity funds availed by NCDMB to bridge gaping financing gaps in critical ventures Investments are at various stages of implementation but most are yet to commence yielding dividends.

    The investments span over 16 states of the Nigerian Federation and expected to spread to several others in the near future.


    Money Creation by Nigerian Content Intervention Fund.

    “Money created equals to US$24.7 million N35.96 billion. While disbursements so far is US$293.26m and N32.85bn respectively.  Total balance with BOI is US$31.5m and N3.11bn as at November 2022. Hence, total money creation by Loan disbursements so far amounts to about US$25m and N34bn FUND SIZE Total funds to Bank of Industry is US$300 million”, he stated.

    On ratio of Loan Approval to Applications under NCI Fund, he said, “Total applications received by BOI from 169 companies is US$868.8m and N77.6bn at end of Q3 2022. Total number of beneficiaries is 61 companies so far. Disbursements so far is US$293.3m and N32.8bn respectively while successful Application Closure amounts to US$ 34% and NGN 42% respectively”.

    Features of the Fund

    Describing the Key features of the NCI Fund, he said it has maximum single digit interest rate of 8 percent per annum all-in. so also the maximum processing period is 45 working days. 100 percent Credit Risk borne by Fund Manager and there is no  form of intrusion by NCDMB in Credit processing Development of more than 5 specialized Loan Products under the scheme.


    Performance Matrix

    On Performance Matrix of the Intervention Funds, he stated that the total Applications received by BOI (169nos.) – N77.6bn – $868.8m while total disbursements (61 beneficiaries) amounts to N32.8bn – $293.3m. NCDF Growth from NCI Fund Income amounts to N1.78bn – $33.79m. Money Creation through NCI Fund Loans – $25m – N34bn and NCDF Growth from NEXIM Fund Income – $1.234m.


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