FG Vows to Pursue Oil Firms, Recover Pending Loans from $450m NCI Funds

•Lokpobiri hails non-defaulting organisations

Peter Uzoho and Olusegun Samuel in Yenagoa

The federal government through the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has threatened to use all instrumentality of the law to pursue indigenous oil companies that have failed to repay the loans they took from the $450 million Nigerian Content Intervention Fund (NCI Fund), an initiative of the Nigerian Content Development and Monitoring Board (NCDMB).

The minister conveyed the government’s resolve yesterday while speaking at an occasion organised by Tamrose Limited, an indigenous oil service company, at the NCDMB headquarters in Yenagoa, Bayelsa State, tagged “Celebration of Growth and Impact.”

The NCI Fund which has grown from the initial $250 million to the current $450 million is a financial initiative established by the NCDMB to support indigenous companies in Nigeria’s oil and gas industry, and each company is only allowed to take a maximum of $10 million.

Managed by the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM), the fund provides low-interest loans for various purposes like manufacturing, asset acquisition, and working capital.

The fund is sourced from a 1 per cent  deduction of contracts in the upstream oil and gas sector and is intended to boost local capacity and competitiveness. 

According to the NCDMB, over 70 companies have taken advantage of the fund but only 21 companies including Tamrose have fully repaid their loans after successfully growing their operational capacities.

But speaking at the event, Lokpobiri, who doubles as the Chairman of NCDMB Governing Council, underscored the importance of companies repaying the loans, saying that would enable others to also benefit from the fund.

He, however, expressed disappointment that only 21 companies were able to repay their loans out of over 70 beneficiaries, vowing that the government will pursue those defaulters using all instrumentality of the law to recover the loans.

“So I’m encouraging all companies that have taken advantage of this money, please, meet your obligation, service these loans, so that money can continue to be kept afloat to service companies in this industry.

“And also, as a lawyer,  I also want to use this opportunity to say, those who feel that they are not going to pay back this loan, we will use the instrumentality of the law to recover this money, so that we can use it to develop this industry.

“We are not going to allow anybody to use this money to go and buy private jets instead of using it to grow the fleet in the industry. We will pursue anybody who is taking this money and who is not fulfilling the obligation of repaying the money”, Lokpobiri stated.

He said when he became the minister, he was briefed by NCDMB about companies that have benefited from the NCI Fund and that the result was not palatable because of the low rate of repayment against the high number of beneficiaries.

“You’ve heard from the speech of the executive secretary, that about 70 companies or more have taken advantage of the availability of this fund. But Tamrose has joined 20 others which means out of 70, only 21 have fully paid back this loan”, the minister said

He reiterated that the fund was created for the purpose of strengthening local capacity to service the oil and gas industry in Nigeria and globally.

The minister expressed excitement that Tamrose used its portion of the NCI fund to expand its operational capacity, growing its fleet from four to 15 vessels in a few years.

According to him, the company has gone beyond the shores of Nigeria to where they are launching their services in the oil and gas industry across the continent of Africa.

As minister and Chairman of the Government Council of NCDMB Board, he restated the commitment of the board and his ministry to continue to grow the NCI fund to enable them continue to support indigenous Nigerian companies like Tamrose to acquire more capacities and render the services that are needed in the oil and gas industry.

He added: “Oil and gas exploration cannot be successful without very strong logistic companies. And that’s why I’m happy that the NCDMB, through this NCI fund, has designed it in such a way that companies like Tamrose will continue to leverage the availability of this fund to grow their fleet.

 “Tamrose story is a story of where several people were given seeds to go and plant. Some people chose to cook their seed. Others like Tamrose chose to plant the seed, and the seed has grown from four to 15 vessels. That’s the example I want to recommend to the entire industry.

 “So I’m here today, very happy as Chairman of the Government Council, NCDMB to celebrate the success of this partnership between Tamrose and then NCDMB.”

In his remarks, Executive Secretary of NCDMB, Mr. Felix Ogbe, represented by the board’s General Manager in charge of Capacity Building and Stakeholder Coordination, Mr Dan Kikile, explained that one of the most important tools in the agency’s efforts to build local capacity was the NCI Fund which was designed to provide structured capital to qualified Nigerian companies that demonstrate capacity and are contributors to the fund.

Ogbe pointed out that Tamrose Limited stands today as clear evidence that the board’s approach was delivering measurable results.

He said the company’s journey from a modest operator to a full Nigerian-flagged marine logistics leader was a story that gives the board pride.

 “Tamrose successfully repaid its Ten Million Dollar NCI Fund facility in full joining over twenty (20) other indigenous companies that have equally met their repayment obligations under the Fund. These achievements reflect strong financial discipline, leadership, and accountability among our beneficiaries.

 “In the process, they have created jobs for Nigerians, increased national tonnage, and demonstrated that Nigerian companies can operate at global standards.

 “I encourage other indigenous companies to follow the example set by Tamrose and the other successful beneficiaries of the NCI Fund. Build responsibly. Grow transparently. Compete with integrity. Deliver consistently”, Ogbe said.

He added that NCDMB remains committed to supporting credible Nigerian enterprises and that the board will continue to strengthen  its frameworks, deepen transparency, and expand programmes that equip companies to match global competition.

He said the board’s strategic direction was clear, which is to increase Nigerian participation in the gas value chain; strengthen the country’s role in renewables; expand the blue economy; and build a strong industrial base that is powered by Nigerian talent, Nigerian capital, and Nigerian innovation.

However, Ogbe announced that NCDMB will unveil its new product – the Nigerian Content Equity Fund (NCEF) in December 2025 at the Practical Nigerian Content (PNC) Forum in Yenagoa, Bayelsa State, adding that the Memorandum of Understanding (MoU) between the board and its partner financial institutions will be signed at the event.

 “On the back of the success of the NCI Fund, and the outstanding performance of over 70 beneficiary companies, I am pleased to inform the industry that a new product — the Nigerian Content Equity Fund (NCEF) will be unveiled soon. The NCEF is designed to provide long-term risk capital to support Nigerian companies operating in high-value and high-impact sectors. This innovative product will be officially launched at our Practical Nigerian Content Forum in December”, the executive secretary announced.

Earlier in his welcome address, the Executive Chairman of Tamrose Limited, Mr. Ambrose Ovbiebo, said between 2019 and 2025, the company has expanded its operations from a modest fleet of four vessels to 15 modern offshore support vessels, including platform supply and security patrol vessels.

He noted that the remarkable growth was achieved through a combination of strategic investment, operational efficiency, and the support of the NCDMB via the NCI Fund.

According to Ovbiebo, the facility provided the financial foundation for Tamrose to strengthen its fleet, expand its technical capacity, and build a resilient organization capable of delivering consistent value to clients across Nigeria’s offshore fields.

 “This year, Tamrose achieved a defining milestone: the complete and timely repayment of its $10 million NCI Fund facility, every instalment delivered as scheduled across six years. The repayment represents more than a financial achievement, it is a reflection of Tamrose governance strength, business discipline, and long-term commitment to accountability”, the executive chairman stated.

Moreover, he said with a workforce of over 250 employees, the company has created over 1,000 direct and indirect jobs across its operations, strengthening local capacity and advancing employment opportunities in Nigeria’s offshore energy sector.