The Nigerian Content Development and
Monitoring Board (NCDMB) has released $200 million loan as intervention
fund to spur the economy and encourage local industries.
Monitoring Board (NCDMB) has released $200 million loan as intervention
fund to spur the economy and encourage local industries.
The package was unveiled at a capacity building workshop tagged, ‘NCDMB and the Nigerian Content Intervention Fund’,
it organised for Energy Correspondents in Yenagoa, Bayelsa state capital.
it organised for Energy Correspondents in Yenagoa, Bayelsa state capital.
The Executive Secretary of
NCDMB, Simbi Wabote, who was represented by Mr. Isaac Iyalah,
the Director, Finance and Personnel Management, said that about 45
applications had been received in respect of the loan.
NCDMB, Simbi Wabote, who was represented by Mr. Isaac Iyalah,
the Director, Finance and Personnel Management, said that about 45
applications had been received in respect of the loan.
While 11 applications have been approved, he noted that $11 million had also been released to the qualified beneficiaries.
“The Nigerian Content
Intervention Fund is a basket of funds created outside NCDMB. Recall
that one per cent of all contracts awarded in the oil and gas sector is
deducted by NCIF, which
is being managed by the board, to see how the intervention fund can be
used to support local companies to enhance their growth and development.
Intervention Fund is a basket of funds created outside NCDMB. Recall
that one per cent of all contracts awarded in the oil and gas sector is
deducted by NCIF, which
is being managed by the board, to see how the intervention fund can be
used to support local companies to enhance their growth and development.
“The $200 million NCIF is a pivotal plank
of NCDMB that is set up with the responsibility to implement and
enforce provisions of Nigerian Oil and Gas Industry Content Development
Act 2010. It is the practical expression of NCDMB’s
efforts to institutionalise financial support for indigenous services
companies operating in the oil and gas industry.”
of NCDMB that is set up with the responsibility to implement and
enforce provisions of Nigerian Oil and Gas Industry Content Development
Act 2010. It is the practical expression of NCDMB’s
efforts to institutionalise financial support for indigenous services
companies operating in the oil and gas industry.”
He noted that proper operations and utilisation of the fund would help reverse the unhealthy foreign dominance in the sector.
The financial cover of the NCIF, he
explained, is a comprehensive one, as it deals with contract financing
for Nigerian oil services providers, contract financing for oil and gas
community contractors, and contract and loan refinancing
for servicing companies that already have facilities with Nigerian
banks.
explained, is a comprehensive one, as it deals with contract financing
for Nigerian oil services providers, contract financing for oil and gas
community contractors, and contract and loan refinancing
for servicing companies that already have facilities with Nigerian
banks.
According to him, the fund will empower
the community contractors who, before now, are constrained by staggering
amounts required to compete favourably, win and execute profitable
contracts on offer by different oil companies
and also empower them as agents of wealth creation.
the community contractors who, before now, are constrained by staggering
amounts required to compete favourably, win and execute profitable
contracts on offer by different oil companies
and also empower them as agents of wealth creation.
He added that the beneficiaries would have a repayment period of over five years, at eight per cent interest rate.
Wabote explained that the fund would
serve as a social, as well as economic development tool, that would
create sustained impact in boosting local manufacturing, create jobs to
enhance local technical capacity, as well as igniting
economic growth in the local communities of the Niger Delta and
Nigeria, in general.
serve as a social, as well as economic development tool, that would
create sustained impact in boosting local manufacturing, create jobs to
enhance local technical capacity, as well as igniting
economic growth in the local communities of the Niger Delta and
Nigeria, in general.
