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Indigenous oil firms get $180m from intervention fund - Seemberg News

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Indigenous oil firms get $180m from intervention fund

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The Nigerian Content Development and Monitoring Board has said that indigenous oil firms have accessed 90 per cent of the $200m Nigerian Content Intervention Fund.

The Executive Secretary, NCDMB, Mr Simbi Wabote, said this in Abuja during a visit by the new executive committee of the Shipowners Association of Nigeria to the board, according to a statement.

The NCI Fund is a portion of the Nigerian Content Development Fund set aside by the NCDMB for the Bank of Industry to manage and lend directly to indigenous manufacturers, service providers and other key players in the oil and gas industry to meet their funding needs.

One per cent of all contracts awarded in the upstream sector of the country’s oil and gas industry is deducted and remitted to the NCDF as stipulated by Section 104 of the Nigerian Oil and Gas Industry Content Development Act.

Responding to a request by the shipowners for the NCDMB to relax certain conditions that made it difficult for them to access the NCI Fund, Wabote was quoted as saying that existing conditions on the fund would remain.

He noted that the board instituted those conditions, including the demand for bank guarantee from the applicant’s commercial bank, so as to guard against failure of the loans and the entire credit scheme.

“We set tight conditions because we do not want the fund to fail,” he added.

Earlier in his remarks, the President, SOAN, Dr Mkgeorge Onyung, commended NCDMB for the implementation of the Nigerian Content Act, saying this had led to the growth of indigenous marine sector.

Onyung said some members of the association were working with foreign partners to start shipbuilding and repair centres in Nigeria and would require support and collaboration from the NCDMB.

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