Adaobi Rhema Oguejiofor
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 $ 50 million, which is equivalent to N38.5 billion, to fund manufacturing activities for the Nigerian Oil and Gas Parks Scheme (NOGaPS).
The Fund was created by NCDMB and domiciled with BoI in order to attract oil and gas equipment manufacturers to NOGaPS facilities established by the NCDMB, as well as increase access to affordable finance by the manufacturing entities.
The signing of the amended MoU took place in Lagos on Friday at the 2023 second quarter Review Meeting of the Nigerian Content Intervention Fund (NCIFund), where the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, highlighted the tremendous success of NCIFund in catalyzing capacity development and investments in the Nigerian oil and gas industry.
He hinted that the Fund serves as a model for local content practice across the African continent and that it inspired the creation of the African Energy Bank by the African Petroleum Producers Organization (APPO), in partnership with the African Export Bank (Afreximbank).
According to him, countries like Angola and Namibia are currently engaging the Board, with a view to understand the workings of the NCIFund, so as to replicate the same in their jurisdictions.
In his own words “today, 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.”
Wabote further commended BoI for the successes being recorded in the management of the NCIFund, assuring that the Board will continue to look for other opportunities to increase its partnership with BoI.
The NCDMB Boss expressed that considering the effectiveness and success recorded by both BoI and NCDMB may consider inviting BoI to send a nominee that will act as an independent Director to the Board of Directors of some of the companies that the Board has invested equity in, adding that this will help them overcome some of the prevailing issues around governance, liquidity and technical optimization.
On his part, the Managing Director of BoI, Mr Olukayode Pitan, expressed confidence in the future performance of the Board’s funds domiciled in the bank, while noting that these quarterly review meetings will impact on sustaining the effective disbursements and recovery of these funds.
