Adaobi Rhema Oguejiofor
The Bank of Industry (BOI) and the Nigerian Content Development and Monitoring Board (NCDMB) have collaborated in order to encourage the domestic manufacturing of oil and gas equipment.
The move is expected to push up Nigeria’s 10 percent capacity in manufacturing oil and gas components, equipment, and machinery.
The Executive Secretary of NCDMB, Simbi Wabote, at the signing of the Nigerian Oil and Gas Park Scheme (NOGaPs) Memorandum of Understanding (MoU) between BOI and NCDMB in Lagos, said that the partnership has made available a pool of funds to encourage domestic manufacturing.
He pointed out that NCDMB and BOI are putting up funds to encourage people to manufacture these components and equipment in Nigeria with an attractive interest rate of 8 percent.
Wabote said that the funds are meant to support businesses that want to establish themselves within the industrial parks that have been built by the NCDMB.
He also mentioned that the NCDMB has industrial parks that are almost ready to be commissioned this year.
While speaking at the signing, the NCDMB Boss stated that the board is in the process of getting tenants into the parks to manufacture oil and gas equipment within the country.
In his own words, “it is highly incentivized in terms of encouraging them to establish themselves.”
He noted that the funds are to encourage domestic manufacturing, while maintaining that statistics show that over 98 percent of oil and gas contracts in the country have been awarded to Nigerians.