The Nigerian Content Intervention Fund is a Nigerian Content Development & Monitoring Board (NCDMB) fund managed by Bank of Industry Limited (BOI).
Objective of Nigerian Content Intervention Fund
The fund is designed to achieve the following strategic objectives:
To increase indigenous participation in the oil and gas industry, build local capacity and competencies.
To promote the growth and development of Nigerian Content in activities connected with sectors of the Nigerian oil and gas Industry.
To deepen the creation of linkages to other sectors of the national economy and boost industry contributions to the growth of Nigeria’s National Gross Domestic Product.
To address persistent funding challenges that have hindered capacity and growth of local service providers in oil and gas.
To facilitate the growth of community based companies in the upstream oil and gas sector.
To spur productivity and job creation in the Oil and Gas Industry.
To attract investment capital into the sector and boost contribution of the sector to Nigeria’s economic growth.
Nigerian Content Intervention Fund Category
1. Manufacturing Funds: This product provides a maximum of 5 year loan of up to US$10M @ 8% p.a. to Nigerian oil and gas companies compliant with NCDF remittances to local manufacturers in the Nigerian oil and gas industry.
Requirements for Manufacturing Funds Application
Target Market – For manufacturers as well as other Original Equipment Manufacturers (OEM’s) in the Nigerian oil and gas industry who are contributors to the Nigerian Content Development Fund to procure :
Fixed Assets
Working Capital
Leasing of Industrial and business equipment
Loan Type – Term Loans, Working Capital Finance (Time Loans) and Leasing
Amount – Up to $10million
Equity Contribution – 10% of total project cost
Interest Rate – 8 %
Moratorium – From 6 Months to a maximum of one (1) year moratorium on principal repayment subject to review of company’s cash flows
Tenor – Maximum of five (5) years but tied to the payment tenor of the contract.
Security arrangement / Nigerian Content Intervention Fund
Bank Guarantees from the Eligible Banks as approved by BOI
Treasury Bills or Federal Government Bonds
Loan Application Checklist
1. Formal Application Letter on company Letter Head
2. Certificate of Incorporation/Registration
3. Memorandum and Articles of Association (MEMART)
4. Certified True Copy of Form CAC 2.5 (Allotment of Shares)
5. Certified True Copy of Form CAC 2.3 (Particulars of Directors)
6. Certified True Copy of Form CAC 2.1 (Appointment of Company Secretary)
7. Recent Tax Clearance Certificate of the company
8. Recent Tax Clearance Certificates of two (2) Directors of the company.
9. Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card)
10. Feasibility Report/Business plan
11. Evidence of required permits by the Oil and Gas Industry regulators such as DPR, NCDMB and Nigerian Petroleum Exchange(NIPEX) (where applicable) to operate in the oil and gas Industry.
12. Evidence of the requisite approval from regulatory bodies for the manufactured goods
13. Valid contract from an International Oil Company (IOC)
14. Evidence of performance on similar contracts.
15. Transaction documents typical of the project to be financed
16. Quotation/Proforma Invoice for the supply of the items of Machinery & Equipment
17. Sources and Quotations for Raw Materials expressed in quantity and amount
18. Evidence of approved Environmental Impact Assessment (EIA) Report on the manufacturing plant
19. Recent three (3) years Audited Account of the Company, Institutional Investors or any other Company owned by the Chief Promoter
20. Recent Bank Statements of the Company for the past one (1) year
21. Curriculum Vitae (CV) of the Directors and Key Management Staff
22. Evidence of collateral (e.g. Letter of intent from Commercial Bank for Bank Guarantee, Treasury Bills, etc). The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank.
2. Assets Acquisition Funds: This product provides a maximum of 5 year loan of up to US$10M @ 8% p.a. to Nigerian oil and gas companies compliant with NCDF remittances which intend to acquire plants, rigs, marine vessels, facilities and other ancillary equipment for use in the local upstream sector.
Requirements for Assets Acquisition Funds
Target Market – This product is targeted at indigenous oil and gas companies who intend to acquire plants, rigs, marine vessels, facilities and other ancillary equipment for the use in the local upstream sector and are contributors to the Nigerian Content Development Fund (NCDF)
Loan Type – Term Loan, Leasing, Working Capital
Amount – Up to $10million
Equity Contribution – 10% of total acquisition cost of asset
Interest rate – 8%
Tenor – Maximum of 5years
Moratorium – From 6 Months to a maximum of one (1) year moratorium on principal repayment subject to review of company’s cash flows and contract receivables.
Security arrangement
Bank Guarantees from the Eligible Banks as approved by BOI
Treasury Bills or Federal Government Bonds
Loan Application Checklist
1. Formal Application Letter on company Letter Head
2. Certificate of Incorporation/Registration
3. Memorandum and Articles of Association (MEMART)
4. Certified True Copy of Form CAC 2.5 (Allotment of Shares)
5. Certified True Copy of Form CAC 2.3 (Particulars of Directors)
6. Certified True Copy of Form CAC 2.1 (Appointment of Company Secretary)
7. Recent Tax Clearance Certificate of the company
8. Recent Tax Clearance Certificates of two (2) Directors of the company
9. Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card
10. Feasibility Report/Business plan
11. Evidence of required permits by the Oil and Gas Industry regulators such as DPR, NCDMB and Nigerian Petroleum Exchange(NIPEX) (where applicable) to operate in the oil and gas Industry.
12. Valid contract from an International Oil Company (IOC).
13. Evidence of performance on similar contracts.
14. Quotation/Proforma Invoice for the asset to be acquired
15. Evidence of approved Environmental Impact Assessment (EIA) Report on the manufacturing plant
16. Recent three (3) years Audited Account of the Company, Institutional Investors or any other Company owned by the Chief Promoter
17. Most recent Management Account
18. Transaction documents typical of the asset to be financed
19. Recent Bank Statements of the Company for the past one (1) year
20. Curriculum Vitae (CV) of the Directors and Key Management Staff
21. Evidence of collateral (e.g. Letter of intent from Commercial Bank for Bank Guarantee, Treasury Bills, etc). The letter of
Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank.
3. Contract Finance Funds: This product provides a maximum of 5 year loan of up to US$5M @ 8% p.a. to Nigerian oil and gas companies compliant with NCDF remittances which intend to finance contracts from IOCs
Requirements for Contract Finance Funds
Target Market – Indigenous oil & gas companies who intend to finance contracts from IOCs and are contributors to the Nigerian Content Development Fund (NCDF)
Loan Types – Term Loans, Working Capital Finance (Time Loans), Invoice Discounting and Leasing
Amount – Up to $5million
PRICING – 8%
Tenor – Maximum 5 years
Moratorium period – From 6 Months to a maximum of one (1) year moratorium on principal repayment subject to review of company’s cash flows
Tenor – Maximum of 5 years
Security arrangement
Bank Guarantees from the Eligible Banks as approved by BOI
Treasury Bills or Federal Government Bonds
Legal Mortgage on acceptable property located in Abuja, Lagos or Port Harcourt and Domiciliation of contract proceeds
Fixed Asset Coverage must be a minimum of 2 times the facility amount
Loan Application Checklist
1. Formal Application Letter on company Letter Head
2. Certificate of Incorporation/Registration
3. Memorandum and Articles of Association (MEMART)
4. Certified True Copy of Form CAC 2.5 (Allotment of Shares)
5. Certified True Copy of Form CAC 2.3 (Particulars of Directors)
6. Certified True Copy of Form CAC 2.1 (Appointment of Company Secretary)
7. Recent Tax Clearance Certificate of the company
8. Recent Tax Clearance Certificates of two (2) Directors of the company
9. Means of identification (i.e. photocopy of International Passport or Driver’s License or National Identity Card or Permanent Voter’s Card)
10. Feasibility Report/Business plan
11. Evidence of required permits by the Oil and Gas Industry regulators such as DPR, NCDMB and Nigerian Petroleum Exchange(NIPEX) (where applicable) to operate in the oil and gas Industry.
12. Signed Local Community Development Agreement (CDA)
13. Valid contract from an International Oil Company (IOC)
14. Evidence of performance on similar contracts.
15. Transaction documents typical of the project to be financed
16. Quotation/Proforma Invoice for the supply of the items of Machinery & Equipment
17. Sources and Quotations for Raw Materials expressed in quantity and amount
18. Recent three (3) years Audited Account of the Company, Institutional Investors or any other Company owned by the Chief Promoter 19. Most recent Management Account
20. Recent Bank Statements of the Company for the past one (1) year
21. Curriculum Vitae (CV) of the Directors and Key Management Staff
22. Evidence of collateral (e.g. Letter of intent from Commercial Bank for Bank Guarantee, valuation report, copy of the title documents to the property or assets being pledged, Treasury Bills, etc). The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank.
