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Nigerian Content Development and Monitoring Board (NCDMB) recently announced the launch of a USD 100 million Nigerian Content Equity Fund (NCE Fund), an initiative poised to reshape local content funding. This signals a pivotal shift from traditional debt financing, creating new opportunities for investors and growth-focused Nigerian companies to partner with the NCDMB in high-impact sectors.
16 December 25
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The NCDMB is collaborating with the Bank of Industry, via a Memorandum of Understanding, to implement this initiative. The BOI will deploy equity, and the NCE Fund will operate to provide equity financing to “high-growth” indigenous energy service companies, enabling the Nigerian Content Development Fund (NCDF) diversify its income base and strengthen local content development. This model is designed to secure a pool of funds which can be injected as long-term, patient risk capital into high-growth sectors, including renewables and the “new economy.” The returns on the investments are projected through dividends and strategic exits, signalling a move towards value creation and partnership in the selected companies. The fund was formally launched at the Practical Nigerian Content (PNC) Forum.
The Nigerian Content Intervention Fund (NCI Fund), on the other hand, is an existing debt-based programme established by the NCDMB to offer low-cost loans to oil and gas companies. The NCI Fund is sourced from the Nigerian Content Development Fund (NCDF), into which the one percent (1%) levy on upstream contracts mandated under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, is paid. The NCI Fund is administered primarily through the Bank of Industry.
The NCE Fund signals a maturation of the NCDMB’s strategic goals and a shifting of its role from a soft lender to an active equity partner. This directly addresses the persistent challenge of securing long-term lower-risk capital, a gap that concessionary debt cannot fill. For investors, this creates unique co-investment opportunities alongside a strategic government partner, potentially de-risking entry into high-growth sectors. For indigenous companies, it provides a vital pathway to scale operations and build enterprise value without the immediate repayment pressures of traditional debt.
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Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Oghogho Makinde or Cephas Caleb