NCDMB Targets $200m for Nigerian Content Fund

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Kesiye Wabote has stated that the agency is planning to increase the funds lent to qualified oil and gas players under the Nigerian Content Intervention Fund (NCI Fund) from $100 million to $200 million.

Speaking recently during a visit to the new Managing Director of the Bank of Industry (BoI), Mr. Olukayode Pitan in Lagos, Wabote explained that the new governance framework for the Fund had been finalised and that the updated Memorandum of Understanding (MoU) with the BoI will be signed within the next few weeks to signal the take-off of the scheme

According to him, an increase of the pool would ensure that more deserving companies benefit from the Fund at the same time, he said.

Key features of the NCI Fund according to the Executive Secretary, are that the loans will be disbursed directly by the BOI at single digit interest rate and repaid within five years.

Wabote stressed that only contributors to the Nigerian Content Development Fund (NCDF), with bankable proposals in the oil and gas industry can approach BOI for the NCI Fund facility.

He noted that whereas there were various intervention funds for other critical sectors of the economy like agriculture, aviation, mining and others, there was none for the oil and gas sector before now.

The NCDMB and BOI launched the NCI Fund in July 2016 with $100 million but it suffered delays as efforts were being made to fine-tune the governance process. The NCI Fund replaced the original model whereby the NCDF provided partial guarantees and 50 per cent interest rebate to service companies who obtained facilities from commercial banks for asset acquisition and projects execution.

Industry stakeholders experienced difficulty accessing funds under NCDF model, necessitating a change of strategy by the Board. Industry stakeholders, including the Petroleum Technology Association of Nigeria (PETAN) had described the NCI Fund model as a great initiative that would address the paucity of funding and inability to access credit which often beset manufacturers, service providers and other key players in the Nigerian oil and gas industry.

In his comments during the visit, the Managing Director of BOI expressed delight at the partnership between the Bank and NCDMB.