The Nigerian Content Development and Monitoring Board (NCDMB) has approved ₦15 billion in funding to support its Contractors Financing Scheme, significantly increasing the single obligor limit from ₦20 million to ₦100 million. This initiative aims to tackle the persistent challenge of inadequate funding faced by local contractors handling projects for oil and gas companies.
At the Practical Nigerian Content (PNC) 2024 Forum in Bayelsa, themed “Defining the Next Frontier for Nigerian Content Implementation,” NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe, highlighted the board’s commitment to fostering collaboration and resilience in the industry. Ogbe noted a remarkable improvement in Nigerian Content Development indices, which have risen from 26% in 2016 to 56% in 2024. He attributed this success to strategic reforms and partnerships aimed at empowering Nigerian companies and individuals in the oil and gas sector.
Ogbe also outlined key milestones achieved under the Nigeria Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the 10-Year Strategic Roadmap launched in 2017. These accomplishments include commissioning Amal Technologies in Abuja, the Kwale Gas Gathering facility in Delta State, approving 312 Nigerian Content Plans, and issuing 402 Nigerian Content Compliance Certificates (NCCCs). Streamlining the contracting cycle from nine to five touchpoints has reduced project timelines to six months.
The board’s strategic partnerships have yielded transformative projects such as Bell Oil and Gas’ 50,000-metric-ton Oil Country Tubular Goods (OCTG) facility at the Lekki Free Trade Zone, a 10,000 MT galvanizing plant by Daewoo, and the establishment of Nigeria Oil and Gas Park Schemes (NOGaPS) in Bayelsa, Cross River, and Akwa Ibom States. Other significant initiatives include a 300 MMSCFD gas gathering facility in Kwale, a 180-metric-ton LPG filling plant in Kaduna, and a 100-metric-ton LPG bottling facility in Katsina.
Prioritizing Human Capital and Local Content Development
Human capital development remains a cornerstone of NCDMB’s efforts. Ogbe emphasized initiatives such as cadetship training for 63 youths in partnership with Shell, and the Nigerian Content Human Capital Development (NC-HCD) Basic Training under the NLNG Train 7 Project, which has benefited 331 Nigerians. Other efforts include internships for 49 graduate engineers and geoscientists and the commissioning of learning facilities like the Engineering Design Studio at the Federal University of Owerri and an E-Library at Niger Delta University in Bayelsa.
Ogbe also detailed the “Back to the Creek” initiative, designed to equip youths in oil-producing communities with skills tailored to industry needs. This program aligns with President Bola Tinubu’s mandate to create an enabling environment for businesses to thrive. Implemented in three phases, it focuses on upgrading primary education infrastructure, enhancing secondary education through scholarships, and facilitating employment for high-performing students. These efforts underscore NCDMB’s dedication to fostering economic growth and inclusivity in host communities, ensuring the long-term success of Nigeria’s local content agenda.
AFC Facilitates €2 Billion Syndicated Loan for Bank of Industry
The Africa Finance Corporation (AFC), a leading provider of infrastructure solutions on the continent, has successfully coordinated a record-breaking €2 billion syndicated facility for Nigeria’s Bank of Industry (BoI). Acting as the Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor, AFC has set a new benchmark for developmental finance in Africa through this historic transaction.
The proceeds of the facility are earmarked for general corporate purposes, including financing trade and trade-related projects for eligible Nigerian corporations. This marks the largest capital raise in BoI’s history and underscores the institution’s ability to access international capital markets despite the current challenges of scarce and expensive credit.
The syndication was executed in two phases. In the initial phase, AFC partnered with a senior syndicate comprising Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (via its Rand Merchant Bank division), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited (through its Corporate and Investment Banking division), and the Export-Import Bank of India’s London Branch. This phase raised €1.43 billion. Subsequently, AFC led a general syndication that garnered an additional €447 million, resulting in a total of €1.9 billion—an oversubscription of 87 percent. The transaction is expected to grow further to €2 billion, solidifying its status as the largest syndication in African development finance history.
A Milestone in African Development Finance
This landmark transaction not only highlights the resilience of African financial institutions but also demonstrates the confidence of international markets in BoI and AFC as key players in the continent’s financial landscape. The collaboration showcases the potential of African institutions to attract substantial global investments.
Executive Board Member and Head of Financial Services at AFC, Banji Fehintola, remarked, “This successful syndication represents a transformative moment for BoI and Africa’s financial ecosystem. It underscores AFC’s role as a trusted bridge between global investors and African development projects.” He extended gratitude to joint coordinators like Standard Chartered Bank and other participating institutions for their crucial roles in the success of this initiative.
BoI’s Managing Director, Dr. Olasupo Olusi, described the financing as a pivotal achievement. “This marks our sixth international capital raise and the largest in BoI’s history. It is a testament to the unwavering support of our global funding partners, particularly AFC, whose unique role ensured the success of this transaction,” Olusi noted.
Leveraging its A3 (stable outlook) investment-grade rating affirmed by Moody’s, AFC brought together a consortium of international financial institutions to facilitate the deal. This aligns with AFC’s mission to bridge Africa’s infrastructure gap, drive industrialisation, and enhance economic resilience against global challenges.
Through this innovative financing model, AFC and BoI have reinforced their commitment to accelerating Africa’s economic development while fostering confidence in the continent’s capacity to execute large-scale projects that contribute to sustainable growth.