Local content: NCDMB, BoI sign amendment of MoU on $50m NOGaPS Fund

Local content: NCDMB, BoI sign amendment of MoU on m NOGaPS Fund

THE Nigerian Content Development and Monitoring Board, NCDMB, and the Bank of Industry, BoI, have signed an amendment to the Memorandum of Understanding, MoU, on the $50million Nigerian Oil and Gas Park Scheme, NOGaPS Manufacturing Fund.

The Fund was created by NCDMB and domiciled with BoI to attract oil and gas equipment manufacturers to the Nigerian Oil and Gas Parks Scheme, NOGaPS, facilities established by the NCDMB, and increase access to affordable finance by the manufacturing entities.

The signing of the amended MoU took place in Lagos at the 2023 second quarter Review Meeting of the Nigerian Content Intervention Fund, NCIFund, weekend.

Executive Secretary, NCDMB, Engr Simbi Kesiye Wabote, underlined the tremendous success of the NCIFund in catalyzing capacity development and investments in the Nigerian oil and gas industry.

He noted that the Fund served as a model for local content practice across the African continent and inspired the creation of the African Energy Bank by African Petroleum Producers Organization, APPO, in partnership with the African Export Bank (Afreximbank).

He said countries, such as Angola and Namibia, were currently engaging the Board, with a view to understanding the workings of the NCI Fund in  order to replicate same in their jurisdictions.

Wabote said: “Angola is thinking of establishing a similar credit line for their oil and gas companies. I think the parliament recently approved some sum of money for them to manage in that respect. Namibia is planning to do the same with the potential enactment of a Local Content Act.”

He commended the BoI for the successes recorded in the management of the NCI Fund, assuring that the Board would continue to look for other opportunities to increase its partnership with BoI.

He said: “Considering the effectiveness and success recorded by BoI, NCDMB may consider inviting BoI to send a nominee that will act as independent Director to the Board of Directors of some of the companies that we have invested equity in. This will help them overcome some of the prevailing issues around governance, liquidity and technical optimization.”

Similarly, the Managing Director, BoI, Mr Olukayode Pitan, expressed confidence in the future performance of the Board’s funds domiciled in the bank, noting that these quarterly review meetings would impact on sustaining the effective disbursements and recovery of the funds.

According to him, the NCI Fund is performing excellently with 194 applications equalling US$1 billion /?80.6 billion with 69 disbursements, totalling US$324 million /?38.4 billion at the time of reporting.

The Board established the NCI Fund in 2018 with the purpose of financing oil and gas companies to increase capacity and grow Nigerian content in the industry.

Currently, the NCI Fund has five product lines being managed by the Bank of Industry, including Manufacturing Finance -$10m; Asset Acquisition Finance -$10m; Contract Finance -$5m; Loan Refinance -$10m and Community Contractor Finance – ?20 million.

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