Nigerian Firms Secure N51.7bn, $359m in Local Content Funds – NCDMB
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Nigerian Content Funds Boost Indigenous Oil & Gas Participation
A total of 132 Nigerian companies have accessed N51.785 billion (approximately $67.8 million USD as of November 21, 2023, using a rate of 763.89 NGN/USD) and $359.653 million USD from local content intervention funds, according to the Nigerian Content Development and Monitoring Board (NCDMB). These funds aim to bolster indigenous participation in Nigeria’s oil and gas sector.
Funding Breakdown & Allocation
The funding comprises the $350 million Nigerian Content Intervention Fund, the N50 million Working capital Fund supported by the Nigerian Export-Import Bank (NEXIM), and the Women in Oil and Gas Fund. These initiatives are designed to strengthen the capabilities of Nigerian firms and foster sustainable local involvement in the industry.
Recent data released by the NCDMB on November 20, 2023, details the allocation of these funds:
| Category | Nigerian Naira (NGN) | United States Dollar (USD) | Number of Companies |
|---|---|---|---|
| Manufacturing | N7.561 billion | – | 3 |
| Asset Acquisition | N22.144 billion | $205.666 million | 38 |
| Contract Financing | N2.232 billion | $24.728 million | 10 |
| Loan Refinancing | N15.98 billion | $115.998 million | 25 |
| Total | N51.785 billion | $359.653 million | 132 |
Increased Local Participation
According to NCDMB Director of Corporate Services, Abdulmalik Halilu, these interventions have demonstrably increased local participation in the oil and gas sector. Halilu stated that local participation has risen from 44% three years ago to 61% in 2023, during a media stakeholders workshop held in Abuja on november 20, 2023.
Halilu highlighted the Nigeria LNG (NLNG) Train-7 project as a prime example, noting that it engaged approximately 8,000 Nigerian workers. This underscores the tangible benefits of implementing local content policies. Nigeria LNG Train 7 Project
Local Content: Beyond indigenization
Halilu emphasized that local content is not simply about favoring domestic companies, but rather about “domestication based on global best practices.” He clarified that it’s not merely indigenization or the promotion of substandard goods.