THE NIGERIAN CONTENT INTERVENTION (NCI) FUND
FREQUENTLY ASKED QUESTIONS
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1. What is the NCIF?
The Nigerian Content Intervention (NCI) Fund is a pool of funds made available by the Nigeria Content Development and Monitoring Board (NCDMB) to be managed by the Bank of Industry to meet the funding needs of indigenous manufacturers, service providers and other key players in the Nigerian Oil and gas Industry. It is sourced from the Nigerian Content Development Fund (NCDF) created by section 104 of the Nigerian Oil and Gas Content Development Act (NOGICD) Act.
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2. Why the NCI Fund?
This fund was motivated by the desire to re-engineer the operations of the NCDF, increase access to funding and grow indigenous participation in the oil and gas industry.
- To increase access to NCDF.
- To provide single digit interest loan.
- To enhance competitiveness of indigenous companies servicing the oil and gas industry.
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3. What is the purpose of the NCI Fund?
This fund was motivated by the desire to re-engineer the operations of the NCDF, increase access to funding and grow indigenous participation in the oil and gas industry.
- 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.
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4. Who is eligible to access the Nigeria Content Intervention (NCI) Fund?
The funds will be accessible to contributors to the NCDF as well as community contractors of any of the oil producing communities.
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5. How will the NCI Fund boost local content participation in the oil and gas Industry?
- i) It will promote the production and utilization of locally manufactured goods and services in the Nigerian oil and gas industry.
- ii) It will address the persistent funding challenges that has hindered capacity and growth of local service providers in oil and gas industry.
- iii) It will spur productivity and job creation in the oil and gas industry.
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6. What are the available types of funding under the NCI Fund?
- i) Manufacturing Loan.
- ii) Asset acquisition
- iii) Contract Finance
- iv) Community contractor finance scheme
- v) Loan re-financing.
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7. What are the facility types that can be accessed under the NCI Fund?
Term loans, Working Capital, Invoice Discounting and Leasing facility
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8. What is the maximum amount an applicant can access (i.e. the single obligor limit) under each loan type?
The single obligor limit for the available types of funding are detailed below:- i) Manufacturing Loan - US$10million
- ii) Asset acquisition Loan - US$10million
- iii) Contract finance Loan - US$5million
- iv) Community Contractor Finance Scheme – N20million
- v) Loan Re-financing - US$10million
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9. Can an applicant access more than one facility type?
Applicants cannot have two different loans running simultaneously.
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10. What is the tenor of the available loan types under the NCI Fund?
The maximum tenor of all loan types is 5 years.
- i) Manufacturing Loan - Maximum of 5 years
- ii) Asset acquisition Loan - Maximum of 5 years
- iii) Contract finance Loan - Maximum of 5 years
- iv) Community Contractor Finance Scheme – Maximum of 5 years
- v) Loan Re-financing - Maximum of 5 years
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11. What is the interest rate applicable for the available loan types under the NCI Fund?
Interest rate for the available types of funding are detailed below:- i) Manufacturing Loan – 8%
- ii) Asset acquisition Loan - 8%
- iii) Contract finance Loan – 8%
- iv) Community Contractor Finance Scheme – 5%
- v) Loan Re-financing – 8%
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12. Where can a prospective applicant apply for the NCI Fund?
The applicant can apply via the BOI/NCIF portal www.boi.ng/ncifund
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13. Can an applicant route the application through a bank?
NO.
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14. Is this a share of the national cake or a grant?
NO. It is a loan and MUST be paid back so that others can benefit from it.
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15. How long will it take to access the loan upon submission of application?
Forty-five (45) working days (from the date of submission of complete documentation) subject to fulfilment of all terms and conditions and contract confirmation from an International Oil Company (IOC), where applicable.
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16. Who qualifies as a community contractor?
A community contractor is a company operating in the upstream/midstream sector of the oil and gas industry, that has a valid contract with an IOC for a job in any of the oil and gas communities and whose chief promoter is also an indigene of an oil and gas producing community.
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17. What is contract financing?
This is the provision of loan facilities to oil & gas companies which are contributors to the Nigerian Content Development Fund (NCDF) and intend to finance contracts from IOCs (indigenous companies in the case of community contractors).
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18. What type of assets can be acquired with NCI Fund?
Plants, Facilities, Rigs, Marine Vessels and other ancillary equipment excluding landed assets.
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19. What type of facilities can be re-financed under the NCI Fund?
The loan types that are available for refinancing include working capital loans, term loans, leasing facilities. However, the facility must be performing, viable and well secured.
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20. Do I need to provide any equity contribution? If so how much?
Equity contribution will only be required for the manufacturing and asset acquisition facility types. Applicant will be required to provide a minimum of 10% equity contribution.
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21. What information will be required in the feasibility report?
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22. Are there specific documents required for the loan application?
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23. What types of collateral can be used to secure the loan types?
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(a) Community Contractor Finance Scheme
Loan Amount Security Agreement ≤10 million A combination of;
- 1. Personal Guarantee of the Chief Promoter of the company
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2. Two (2) external Guarantors acceptable to BOI who must belong to any of the following categories:
- a) Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.
- b) Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.
- c) Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.
- d) Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)
- 3. Domiciliation of contract proceeds to BOI designated bank
Plus any or a combination of the following:
- 4. All asset debenture
- 5. Charge on the personal movable assets of the Chief Promoter using the Collateral Registry
- 6. Lien on Stocks and Shares of Blue chip Companies
The personal/external guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.
>10.0 ≤ 20.0 A combination of;
- 1. Personal Guarantee of the Chief Promoter of the company
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2. Two (2) external Guarantors acceptable to BOI who must belong to any of the following categories:
- a) Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.
- b) Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.
- c) Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.
- d) Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)
- 3. Domiciliation of contract proceeds to BOI designated bank
Plus any or a combination of the following:
- 4. All asset debenture.
- 5. Charge on the personal movable assets of the Chief Promoter using the Collateral Registry.
- 6. Lien on Stocks and Shares of Bluechip Companies.
The personal/external guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI
Or
A Bank Guarantee from an eligible Bank. (The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank)
(b) Loan Refinancing
- Bank Guarantees from the Eligible Banks as approved by BOI. (The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank)
- Treasury Bills
- Federal Government Bonds
(c) Contract Finance
- Bank Guarantees from the Eligible Banks as approved by BOI. (The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank)
- Treasury Bills
- Federal Government Bonds
- Legal Mortgage on acceptable property located in Abuja, Lagos or Port Harcourt and Domiciliation of contract proceeds
(d) Asset Acquisition
- Bank Guarantees from the Eligible Banks as approved by BOI. (The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank)
- Treasury Bills
- Federal Government Bonds
(e) Manufacturing Loan
- Bank Guarantees from the Eligible Banks as approved by BOI. (The letter of Intent must be signed by the Chief Risk Officer and/or an Executive Director of the issuing Bank)
- Treasury Bills
- Federal Government Bonds
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24. Is there a list of accredited valuers for the valuation of assets?
Yes, the list of BOI accredited valuers can be accessed via link below:
Download Accredited Valuers -
25. Is there a list of approved auditors for the audit of company’s financial statements?
Yes, the list of BOI approved auditors can be accessed via the link below:
Download List of Accredited Auditors - Apply Now