The Nigerian Content Development and Monitoring Board, in partnership with the Nigerian Export-Import Bank, has disbursed about $42 million to Small and Medium Enterprises to strengthen local participation in Nigeria’s oil and gas industry.

Speaking at the NCDMB Stakeholders’ Sensitisation and Engagement Forum in Port Harcourt, Rivers State, on Wednesday, the Head of Specialised Business at NEXIM, Muhammed Awami, said the intervention aims to empower Nigerian service providers and deepen local content in the sector.

Awami explained that although the Capacity Building Fund was initially set at $30 million, NEXIM exceeded this limit to encourage more indigenous companies to participate in the oil and gas value chain.

“Once you meet pre-disbursement conditions, we disbursed the funds to you, and after disbursement, we also monitor sometimes jointly with NCDMB, sometimes, we just do spot check assessment of utilization of the funds, to make sure the funds are being utilized for the purpose it was disbursed.

“When it’s time to repay, we expect that repayments are made by the beneficiaries so that we can also lend again to other people, the fund Working Capital and Capacity Fund is $30 million but so far, we have disbursed about $42 million,” he said.

The forum, themed “Deepening Local Content through Certification, Compliance and Financing Support,” brought together key players in the industry to discuss ways of expanding Nigerian ownership and competitiveness.

Awami urged registered oil service providers with viable contracts from International Oil Companies and National Oil Companies, to access the NCDMB Working Capital and Capacity Building Fund, which offers flexible financing solutions tailored to business needs.

He noted that the fund is designed to catalyse growth, improve access to markets, expand global presence, and unlock new opportunities for Nigerian enterprises.

“So, I’m sure a lot of challenges could be around collateral in terms of how the funds operate, so what we have done is to water down the requirements without compromising the bank or the board.

“So, we use things like the assignments of receivables, we use things like insurance and other forms of collateral which make it easy for the beneficiaries to access the funds.

“Though we are transactional about it, we look at the transaction itself and build the finance structures around the transaction in such a way that the loan becomes self-liquidity without the need for physical collateral,” he stated.

Earlier, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Felix Ogbe, said the forum provides an important platform for the board to engage directly with stakeholders in the oil and gas industry.

Represented by Dr. Osa Uchendu, Ogbe noted that such interactions would help increase the participation of Nigerian companies in the sector and support their business growth.

In his remarks, the Group Head, Oil and Gas, at the Bank of Industry, Gabriel Yemidale, disclosed that the Nigerian Content Intervention Fund, which commenced in 2017 with a capital base of ₦200 million, had grown to ₦300 million by 2023.