- The minister warned that misuse of the NCI loan undermines Nigeria’s efforts to build strong indigenous capacity in the oil and gas sector.
- He added that proper management of the NCI loan is vital for creating a credible and competitive local industry.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has announced that 59 indigenous oil and gas companies may face prosecution for refusing to repay loans obtained from the Nigerian Content Intervention (NCI) Fund. He said many beneficiaries diverted the money for personal use instead of investing in capacity development. The minister stressed that the Federal Government will not tolerate such misuse of public funds.
Lokpobiri issued the warning in Yenagoa during a ceremony celebrating Tamrose Limited’s growth and full repayment of a $10 million NCI loan. He reminded the audience that the fund exists to support local participation in the oil and gas industry. It was not created to finance private indulgences. More than seventy companies accessed the fund, yet only twenty-one have repaid their loans in full. He described this situation as unacceptable.
He praised Tamrose Limited for its discipline and accountability. The company grew its fleet from four to fifteen vessels after receiving the loan. This growth created hundreds of jobs and showed how adequate intervention funds can boost national development. Lokpobiri also commended the Nigerian Content Development and Monitoring Board (NCDMB) for managing the fund responsibly. He reaffirmed the government’s commitment to growing the scheme for credible indigenous operators.
According to the minister, strong local logistics companies remain crucial to the success of oil and gas operations. Firms that refuse to service their loans will face legal action. He reminded them that the loans were meant to support capacity development, not private jets or personal luxuries.
Lokpobiri also restated the government’s goal of removing middlemen from the sector. Their activities often inflate project costs and slow down operations. Allowing capable Nigerian firms to participate directly will improve efficiency and promote transparency.
The Executive Secretary of the NCDMB, Engr Felix Ogbe, applauded Tamrose’s achievement. He said it reflects what Nigerian companies can accomplish when supported with the right policies. He also acknowledged the roles of NIMASA, financial institutions, and other partners in developing a competitive maritime ecosystem. Ogbe announced that the Board will soon launch the Nigerian Content Equity Fund (NCEF) to provide long-term capital for indigenous firms.
Tamrose Limited’s Executive Chairman, Ambrose Ovbiebo, shared the company’s growth story. The firm began in 2010 with one vessel and has grown into a key offshore support provider across Africa. Ovbiebo said the 2019 NCI loan helped the company expand its fleet and create more than six hundred indirect jobs. He urged the government to release the $25 million Cabotage Vessel Finance Fund to support more local entrepreneurs. He concluded that Tamrose’s success proves that Nigerian firms can deliver world-class services when supported by a clear vision and accountability.