NCDMB WCCF Fund for Nigerian oil and gas contractors
The NCDMB and NEXIM Working Capital and Capacity Fund was created to support indigenous oil and gas service companies with contract execution, invoice discounting, working capital and low-end equipment acquisition. For contractors with signed oilfield service contracts, the practical question is simple. Can the contract support funding, and is the file ready for NEXIM, NCDMB or another capital provider?
Have a signed oil and gas contract that needs funding?
Submit the contract, payment schedule, supplier documents, guarantee requirement and use-of-funds breakdown. Financely can structure the file for contract financing, receivables finance, supplier payment finance or lender distribution.
What is the NCDMB WCCF Fund?
The WCCF is a working capital and capacity funding program for indigenous oil and gas service companies in Nigeria.
The Nigerian Content Development and Monitoring Board and the Nigerian Export-Import Bank signed a memorandum of understanding in 2021 to administer a USD 30 million Working Capital Fund for oil and gas service companies. The fund was designed to help local oilfield service companies manage contract execution pressure, retain personnel, fund short-term obligations and build capacity for larger service work.
The fund sits inside the wider Nigerian Content Intervention Fund ecosystem. It targets commercially viable Nigerian oil service providers with real relationships with international oil companies, national oil companies or major Nigerian oil and gas operators.
Working capital support
Funding for contract execution, operational expenses and short-term service obligations linked to oilfield services.
Invoice discounting
Financing against invoices or payment obligations connected to oil service contracts.
Capacity building
Funding for low-end equipment, assets and operating capability needed to execute short-term oil service contracts.
NCDMB WCCF Fund terms at a glance
These are the core terms reported by NCDMB when the program was announced.
| Item | Reported WCCF term | Practical meaning for contractors |
|---|---|---|
| Fund size | USD 30 million, with matching naira funding from NEXIM | The pool supports eligible oil and gas service companies with working capital and capacity needs. |
| Maximum single obligor | USD 1 million or naira equivalent | Larger contracts may need additional private credit, receivables finance or supplier payment finance. |
| Working capital tenor | Up to 12 months | Best suited for shorter contract cycles, invoice timing gaps and immediate execution costs. |
| Capacity-building tenor | Up to 3 years, with moratorium of up to 12 months | Better suited for equipment, asset acquisition and capability expansion linked to contract execution. |
| Interest rate | 5% all-in p.a. for USD loans and 8% all-in p.a. for naira loans | The pricing is materially cheaper than ordinary high-rate local commercial debt. |
| Processing target | 21 working days after complete documentation | The countdown depends on a complete file. Weak documentation delays funding. |
The WCCF is strongest when the contract is already bankable.
A contractor with a signed purchase order, invoice, IOC or NOC relationship, NOGIC JQS record, clear payment source, receivables assignment route and realistic execution margin has a much stronger funding story. A contractor with a vague award letter, missing permits, weak cost breakdown or unclear receivable path will struggle.
Who can qualify for NCDMB and NEXIM working capital support?
Eligibility is built around Nigerian content, oil service activity, commercial viability and a real contract relationship.
Stronger applicant profile
- Indigenous Nigerian oil and gas service company
- NCDMB registration or Nigerian content compliance pathway
- Commercial relationship with an IOC, NOC or major Nigerian operator
- Signed contract, purchase order, invoice or service obligation
- Relevant sector permits and NOGIC JQS records
- Clear source of repayment from contract proceeds or receivables
Common funding problems
- Unsigned contracts or informal awards
- No clear employer payment obligation
- Missing incorporation, tax or compliance documents
- Unclear project margin or use of funds
- No receivables assignment or payment-control route
- Contract value above WCCF limit without a second funding layer
Transactions the WCCF is designed to support
The fund is transaction-led. The contract, invoice or service obligation drives the credit logic.
Contract execution finance
Funding connected to oilfield services, maintenance, drilling support, logistics, inspection, equipment supply or field operations.
Receivable-backed funding
Funding against approved invoices, payment claims or short-cycle receivables tied to credible buyers.
Low-end asset acquisition
Funding for equipment and assets needed to service short-term contracts or support near-term delivery.
Working capital support
Funding for payroll, logistics, mobilization, consumables, transport, safety requirements and operating expenses.
Capability expansion
Funding to strengthen the contractor’s ability to serve larger contracts, recurring obligations or exportable service work.
Multiple short-term obligations
Funding for contractors with a pool of smaller service contracts, invoices or purchase orders.
Documents contractors should prepare before applying
A complete file is the difference between a clean funding conversation and a slow back-and-forth.
Company documents
- Certificate of incorporation and CAC documents
- Tax documents and financial statements
- Audited accounts where available
- Ownership and KYC records
- Company profile and project experience
Transaction documents
- Signed contract, purchase order or invoice
- Scope of work and payment schedule
- Proforma invoice for equipment or supplier costs
- Use-of-funds breakdown
- Gross margin and repayment analysis
Oil and gas records
- NOGIC JQS or NCDMB registration records
- Relevant petroleum-sector permits
- NCDMB loan application documents
- Completed questionnaire or checklist
- NCDF compliance evidence where applicable
Collateral and repayment support typically used
Many WCCF and contract-financing files rely on transaction control rather than ordinary hard collateral alone.
| Security tool | How it supports the lender | Why it matters |
|---|---|---|
| Assignment of contract | Transfers financing rights or payment claims to the lender where allowed | Gives the lender a direct link to contract proceeds |
| Domiciliation of proceeds | Routes employer payments through a controlled account | Reduces diversion risk and supports repayment |
| Assignment of receivables | Grants the lender rights over invoices or receivable proceeds | Creates a self-liquidating structure when the buyer pays |
| Irrevocable standing payment order | Instructs payment flows through a defined account or bank route | Improves collection discipline |
| Association guarantee | May involve PETAN, OGTAN or relevant association support where available | Adds industry-backed comfort where accepted |
| Insurance and loss payee notation | Names NCDMB, NEXIM or lender as loss payee where required | Protects against insured loss connected to funded assets |
| National Collateral Registry filing | Registers security over movable assets or invoices | Strengthens lender perfection and priority position |
The WCCF cap can be too small for larger contracts.
The reported single-obligor cap is USD 1 million or naira equivalent. Many drilling, equipment supply, EPC, logistics and oilfield services contracts require more capital than that. A larger contract may need a second layer of financing, such as receivables finance, purchase order finance, private credit, supplier payment finance, APG support or a contract-backed working capital facility.
For a dedicated service page on private contract-backed funding, see Financely’s guide to contract financing in Nigeria for oil and gas contractors.
WCCF, private credit and contract financing can work together
Contractors should match the funding route to the contract size, tenor, collateral and payment cycle.
| Funding route | Best use | Key limitation |
|---|---|---|
| NCDMB NEXIM WCCF | Working capital, invoice discounting, low-end equipment and capacity support for eligible Nigerian oil service companies | Reported cap of USD 1 million per obligor may limit larger contract execution |
| Receivables finance | Certified invoices, milestones and approved payment claims from credible buyers | Needs buyer quality, clear invoice status and payment-control route |
| Purchase order finance | Supplier deposits, imported equipment and contract delivery costs | Needs strong delivery mechanics, supplier verification and contract margin |
| Private credit contract loan | Larger working-capital needs connected to signed contracts | More expensive than intervention funding and requires stronger security |
| APG or performance bond support | Contracts where the employer requires guarantee issuance before funds are released | Needs applicant eligibility, bankable wording and acceptable collateral support |
NCDF compliance now matters even more
Oil and gas contractors seeking NCDMB-related benefits should pay attention to the NCDF compliance certificate.
NCDMB has published guidance stating that the Nigerian Content Development Fund Compliance Certificate confirms a company’s compliance with the statutory obligation to remit 1% of the value of qualifying oil and gas contracts into the NCDF. The public notice states that the certificate is now a prerequisite for accessing key regulatory services and approvals issued by the Board.
1% NCDF levy
Covered companies must ensure the statutory remittance is properly handled through designated NCDMB accounts.
NCDF Compliance Certificate
The certificate validates a company’s standing with NCDMB and may affect access to approvals, clearances and regulatory documents.
Better lender confidence
Clean compliance records improve the funding story for contractors seeking WCCF, contract financing or receivables-backed credit.
Submit the deal. We structure the funding file.
Financely supports contractors that need the deal packaged for capital providers, guarantee routes or contract-backed funding.
Contract funding logic
We map the contract value, employer, payment schedule, costs, supplier obligations, margin and repayment source.
Lender-ready file
We organize the financing memo, document index, use-of-funds schedule, risk controls and security package.
Capital-provider routing
We position viable mandates with suitable banks, private credit funds, receivables finance providers or guarantee routes.
Sources used for this guide
Public sources are included for readers who want to verify the WCCF terms and current compliance context.
Original WCCF announcement
NCDMB announcement on the USD 30 million WCCF with NEXIM, including maximum obligor, tenor, pricing and eligible uses.
Reported USD 42 million disbursement
Reporting on NCDMB and NEXIM disbursements, receivables assignment, insurance and self-liquidating transaction structures.
NCDF compliance certificate
NCDMB public notice on the NCDF Compliance Certificate and the 1% NCDF levy requirement for oil and gas contracts.
Common questions about the NCDMB WCCF Fund
What is the NCDMB WCCF Fund?
The NCDMB WCCF Fund is a Working Capital and Capacity Fund administered with NEXIM to support eligible Nigerian oil and gas service companies with working capital, invoice discounting, capacity building and low-end equipment acquisition.
How much can one company borrow under the WCCF?
The original NCDMB announcement stated a maximum single-obligor amount of USD 1 million or the naira equivalent.
What is the interest rate for the NCDMB WCCF?
The original announced rate was 5% all-in per annum for dollar-denominated loans and 8% all-in per annum for naira-denominated loans, fixed through the tenor.
What transactions can qualify?
Eligible transactions include oil service contracts, working capital support, invoice discounting, capacity building and low-end equipment acquisition for short-term service obligations.
Can WCCF fund a large oilfield services contract above USD 1 million?
The reported single-obligor cap means larger contracts may need additional financing. A contractor may need receivables finance, supplier payment finance, private credit, APG support or another contract-backed funding layer.
Can Financely help with WCCF or contract financing?
Financely can help structure and package a fundable contract financing file, including contract funding logic, receivables assignment, supplier payment needs, APG requirements and lender distribution where the deal is viable.
Submit your oil and gas contract for funding.
Send the signed contract, payment schedule, supplier documents, guarantee requirement and use-of-funds breakdown. Financely will assess the deal, structure the financing request and position the mandate with suitable capital providers where the file is viable.
Submit Your Deal for FundingLegal notice Financely is a capital advisory and structuring firm. Financing approval, pricing, advance rate, guarantee issuance, collateral terms, closing timing and disbursement are subject to lender underwriting, KYC, AML, sanctions screening, credit approval, documentation, bank policy, borrower performance and final investment or credit committee approval. This article is informational and does not constitute an offer of credit or securities.