Nigeria’s $200 million single digit
interest intervention fund is now ready to support local companies in
the oil and gas industry.
interest intervention fund is now ready to support local companies in
the oil and gas industry.
The designed was designed a year ago by
the Nigerian Content Development and Monitoring Board (NCDMB) and the
Bank of Industry (BOI).
the Nigerian Content Development and Monitoring Board (NCDMB) and the
Bank of Industry (BOI).
The fund, “Nigerian
Content Intervention Fund (NCI Fund)’’, is designed to provide loans to
Nigerian companies involved in manufacturing in the oil and gas
industry.
Content Intervention Fund (NCI Fund)’’, is designed to provide loans to
Nigerian companies involved in manufacturing in the oil and gas
industry.
It is also for firms that are seeking to acquire assets, especially rigs and marine vessels, Mr. Ibe Kachikwu,
Minister of State for Petroleum Resources, said when the fund was in the mill.
Minister of State for Petroleum Resources, said when the fund was in the mill.
The fund is also expected to cover
contract financing for Nigerian oil service providers, contract
financing for oil and gas community contractors and contract and loan
refinancing for service companies that already have facilities
with Nigerian banks.
contract financing for Nigerian oil service providers, contract
financing for oil and gas community contractors and contract and loan
refinancing for service companies that already have facilities
with Nigerian banks.
No fewer than 11 companies have been approved to access the loan at 8% interest rates out of 45 companies that have applied.
Details of the companies approved for the funding are not made public yet.
The Executive Secretary, NCDMB, Mr. Simbi
Wabote, explained that the NCI Fund is a portion of the Nigerian
Content Development Fund (NCDF) drawn from one per cent of all contracts
awarded in the upstream sector of the industry.
Wabote, explained that the NCI Fund is a portion of the Nigerian
Content Development Fund (NCDF) drawn from one per cent of all contracts
awarded in the upstream sector of the industry.
He added that the Fund was the
realization of NCDMB’s efforts to address persistent funding challenge
that hindered capacity and growth of local service providers in oil and
gas.
realization of NCDMB’s efforts to address persistent funding challenge
that hindered capacity and growth of local service providers in oil and
gas.
He stated that the Board had channeled
its efforts into supporting the Federal Government’s drive to stop
importation of petroleum products, adding that its strategic initiative
was to achieve 100 percent local fabrication of
modular refineries being promoted by the government.
its efforts into supporting the Federal Government’s drive to stop
importation of petroleum products, adding that its strategic initiative
was to achieve 100 percent local fabrication of
modular refineries being promoted by the government.
He said, “We have commenced discussions
with Original Equipment Manufacturers and local fabricators to make this
a reality. We have set aside areas in our oil and gas park for
practical training on operations, maintenance and
running of modular refineries as a sustainable business model and for
fabrication of the units.”
with Original Equipment Manufacturers and local fabricators to make this
a reality. We have set aside areas in our oil and gas park for
practical training on operations, maintenance and
running of modular refineries as a sustainable business model and for
fabrication of the units.”
The Managing Director of BOI, Mr.
Olukayode Pitan, said the NCI Fund will generate employment
opportunities and create linkages with other sectors of the economy.
Olukayode Pitan, said the NCI Fund will generate employment
opportunities and create linkages with other sectors of the economy.
“BOI loans normally attract
single digit interest, but this is single digit in dollars. It would
have been difficult if the funds were not coming from NCDMB.”
single digit interest, but this is single digit in dollars. It would
have been difficult if the funds were not coming from NCDMB.”
He promised that the Bank will set up a
team of experts who would handle loan applications professionally. “It
will only take 45 days between when you apply and when we confirm
whether your application will go through or not.”
team of experts who would handle loan applications professionally. “It
will only take 45 days between when you apply and when we confirm
whether your application will go through or not.”
The Group Executive Director, Finance and
Accounts, Nigerian National Petroleum Corporation (NNPC), Mr.
Abdulrazak Isiaka commended the Board for addressing the challenges that
were experienced with the old model of the Fund.
Accounts, Nigerian National Petroleum Corporation (NNPC), Mr.
Abdulrazak Isiaka commended the Board for addressing the challenges that
were experienced with the old model of the Fund.
He charged beneficiaries to utilize the
Fund diligently, stressing that due diligence should be done before
granting the loans, which must be in areas targeted for development.
Fund diligently, stressing that due diligence should be done before
granting the loans, which must be in areas targeted for development.
