FCMB, NCDMB, and BoI Join Forces to Empower Local Oil and Gas Contractors with N15 Billion Lifeline

In a major boost to Nigeria’s drive for economic inclusion and indigenous participation in the oil and gas sector, First City Monument Bank (FCMB) has announced its partnership with the Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BoI) to disburse a whopping N15 billion loan under the Community Contractors Finance Scheme. The initiative is set to transform the financial landscape for local contractors who have long struggled with funding constraints, limited access to credit, and capacity challenges that hinder their competitiveness in the industry.

The scheme, which falls under the Nigerian Content Intervention Fund, is designed to empower indigenous contractors to execute high-impact projects within their host communities, strengthen local capacity, and ultimately boost Nigeria’s oil and gas industry. The program offers loans of up to N100 million at a remarkably low interest rate of 8% per annum, an unprecedented relief for small and medium-scale enterprises (SMEs) that often face double-digit interest rates from traditional financial institutions.

Remodeled in 2025 under the visionary leadership of Engr. Felix Omatsola Ogbe, the Executive Secretary of NCDMB, the initiative represents a fresh phase of Nigeria’s local content revolution. Engr. Ogbe’s renewed focus on grassroots empowerment aims to ensure that local contractors—especially those operating within oil-producing communities—benefit directly from the country’s oil wealth. His administration has been keen on not just deepening local content participation but also ensuring that it translates into tangible development and prosperity for the people on the ground.

As one of the key participating financial institutions, FCMB has been entrusted with the responsibility of identifying, prequalifying, verifying, and financing credible contractors who meet the eligibility requirements. The bank’s Managing Director and Chief Executive Officer, Mrs. Yemisi Edun, expressed optimism about the transformative potential of the partnership, emphasizing FCMB’s commitment to driving inclusive and sustainable growth.

“We appreciate the confidence placed in us by the Nigerian Content Development and Monitoring Board, the Bank of Industry, and other stakeholders. This partnership aligns with our mission to promote inclusive growth by connecting people, capital, and markets. Through this collaboration, we anticipate immense benefits for local communities—enhanced local content participation, job creation, skills acquisition, improved security, and sustainable national development,” she said.

Mrs. Edun highlighted that one of the key advantages of the scheme is its accessibility, as it removes the barrier of traditional collateral requirements that often deter small businesses from accessing loans. Instead, repayment structures will be tied to contract proceeds, ensuring that contractors can manage funds efficiently without being overburdened by rigid loan conditions. Disbursements will also be milestone-based, with funds released according to project stages to maintain accountability and transparency.

Under the arrangement, FCMB will leverage its strong industry experience, robust credit assessment framework, and long-standing relationships with International Oil Companies (IOCs) and National Oil Companies (NOCs). The bank’s involvement is expected to streamline financing for local contractors while promoting innovation through flexible funding options such as invoice discounting and local purchase order (LPO) financing. Loan tenors will vary between 90 and 365 days, offering the much-needed flexibility that contractors require to manage cash flow effectively while meeting project timelines.

The Nigerian Content Development and Monitoring Board, which was established by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, has been at the forefront of efforts to ensure that Nigerians derive maximum benefit from the nation’s oil resources. Over the years, the Board has successfully grown local content participation in the industry to 56% as of December 2024—a remarkable feat in a sector once dominated almost entirely by foreign players. Through initiatives like this finance scheme, the NCDMB aims to push that figure even higher by providing indigenous contractors with the tools and resources needed to compete globally.

The Bank of Industry (BoI), known for its role in promoting industrial development and SME growth in Nigeria, brings its vast expertise in developmental financing to the table. Its involvement further strengthens the credibility and operational efficiency of the scheme, ensuring that funds are disbursed to deserving contractors who demonstrate both competence and commitment to executing community-based oil and gas projects.

Industry experts have hailed the initiative as a timely intervention, especially at a period when many indigenous oil and gas contractors are struggling with liquidity challenges due to the volatile global oil market and inflationary pressures at home. Analysts believe that the injection of N15 billion into the sector could stimulate significant economic activity, generate employment, and foster technology transfer and innovation among local firms.

More importantly, the Community Contractors Finance Scheme is expected to strengthen the link between oil companies and their host communities by empowering local contractors to take ownership of community development projects. This approach not only promotes social inclusion but also enhances security and stability in oil-producing areas, where unemployment and underdevelopment have often fueled restiveness.

The move also reflects FCMB’s broader mission of supporting Nigeria’s economic transformation through partnerships that align with the nation’s development goals. The bank, which has earned a strong reputation for supporting SMEs and sustainability initiatives, continues to position itself as a catalyst for innovation and growth in key sectors of the economy. By prioritizing indigenous participation in oil and gas, FCMB is reinforcing its commitment to building a more inclusive financial system where access to capital is no longer a privilege but a right for capable entrepreneurs.

For the NCDMB, this initiative represents a practical demonstration of its vision to institutionalize Nigerian content as a catalyst for industrialization and sustainable development. Beyond the financial support, the Board also provides capacity-building programs aimed at equipping contractors with the technical and managerial skills required to handle complex oil and gas projects.

As the scheme takes off, expectations are high that it will mark a new chapter in Nigeria’s pursuit of energy sector inclusion and economic self-reliance. If successfully implemented, the Community Contractors Finance Scheme could become a model for other sectors, proving that with strategic partnerships and targeted financing, local businesses can thrive and drive national development.

The FCMB-NCDMB-BoI partnership is not just about money—it’s about empowerment, sustainability, and the promise of a future where Nigerian contractors are not just participants but leaders in the oil and gas industry. With N15 billion on the line and thousands of jobs potentially created, this initiative could well be the spark that ignites a new wave of industrial growth and community transformation across Nigeria’s oil-rich regions.

By making access to finance easier, fairer, and more inclusive, FCMB and its partners are not just fueling businesses—they’re fueling hope, growth, and a new era of possibilities for Nigeria’s local contractors.