NCDMB, BOI Launch $200m NCI Fund

Minister targets $1bn

The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BOI) on Thursday in Abuja launched the 200 million dollars Nigerian Content Intervention Fund (NCI Fund).

The pool of funds will provide loans to Nigerian companies involved in manufacturing in the oil and gas industry as well as firms seeking to acquire assets, especially rigs and marine vessels. Beneficiaries will get a maximum of $10m, repayable after five years at eight percent interest rate.

The NCI Fund will also cover contract financing for Nigerian oil service providers, contract financing for oil and gas community contractors and contract and loan refinancing for service companies that already have facilities with Nigerian banks.

The Fund will be disbursed directly by the BOI, with community contractors able to access N20m which they will repay with five percent interest.

Speaking at the event, Minster of State for Petroleum Resources, Dr. Ibe Kachikwu called on financial institutions, oil companies and other stakeholders to grow the Nigerian Content Intervention Fund to $1bn.

He said, “The Fund needs to be sizeable to finance big ticket items. We will work internally, first to get BOI to contribute its counterpart funding. I also expect the oil industry to contribute. I will like to see investments drives that will bring in Foreign Direct Investments into this Fund. “

The minster also called for transparent disbursement, geographical spread and application to different segments of the industry.

He canvassed that the Fund be applied in acquiring assets and business driven by cutting edge technology and not facilities that already exist in-country.

Speaking further, the Minister canvassed for a target date when Nigeria will have 100 percent in-country capacity to fabricate every input needed in the oil and gas industry, including Floating Production Storage and Offloading vessels.

In his welcome address, the Executive Secretary NCDMB, Engr. Simbi Wabote explained that the NCI Fund is a portion of the Nigerian Content Development Fund (NCDF) drawn from one percent of all contracts awarded in the upstream sector of the industry.

He added that the Fund was the realization of NCDMB’s efforts to address persistent funding challenge that hindered capacity and growth of local service providers in oil and gas.

He stated that the Board had channeled its efforts into supporting the Federal Government’s drive to stop importation of petroleum products, adding that its strategic initiative was to achieve 100 percent local fabrication of modular refineries being promoted by the government.

He said, “We have commenced discussions with Original Equipment Manufacturers and local fabricators to make this a reality. We have set aside areas in our oil and gas park for practical training on operations, maintenance and running of modular refineries as a sustainable business model and for fabrication of the units.”

In his comments, Managing Director BOI, Mr. Olukayode Pitan said the NCI Fund will generate employment opportunities and create linkages with other sectors of the economy.

He noted that “BOI loans normally attract single digit interest, but this is single digit in dollars. It would have been difficult if the funds were not coming from NCDMB.”

He promised that the Bank will set up a team of experts who would handle loan applications professionally. “It will only take 45 days between when you apply and when we confirm whether your application will go through or not.”

The Group Executive Director, Finance and Accounts, Nigerian National Petroleum Corporation (NNPC), Mr. Abdulrazak Isiaka commended the Board for addressing the challenges that were experienced with the old model of the Fund.

He charged beneficiaries to utilize the Fund diligently, stressing that due diligence should be done before granting the loans, which must be in areas targeted for development.

10 Responses to “NCDMB, BOI Launch $200m NCI Fund”

  1. Ben omotomiye

    This is a laudable program that will actually give those of us tha have been contributing to the NCF over he years, a sence of belonging. I want to congratulate on behalf of the ARCO Group compnanies, the honorable Minister of State for Petroleum Resources, Dr, Ibe Kachukwu and the Executive Secretary of NCDNB, Egr Simbi Wabote on this great.

    MY REQUEST
    Our Company has been a faithful contributor to the NCF, how can we access the fund please?

    Reply
  2. camitel nigeria limited

    Camitel Nigeria limited is indigenous with 100% own by Nigerian business men. presently Camitel is handling on going civil and corporate tower contract with shell petroleum development Nigeria Limted (SPDC) worth contract sum of $5m we are looking for financing of the project.thanks Engr Nsikak Sampson. managing director. tel .08035983438, 09032872499.please i need your response.

    Reply
  3. KINGSLEY ARCHIBONG BASSEY

    (IBAZ TECHNICAL SERVICES).
    We are indigenous contractor in Nigeria in Oil and Gas and are currently handling Term procurement Job with ExxonMobil Nigeria, Qua Ibo Terminal. We have engage and delivered number of project over the years,
    We wish to solicit for financial assistance to carry out this job as we have PO at hand, we wish need to know the term and what it will take for us to access the facility and duration.

    Reply
    • Numbere Tams

      This is a welcomed development. Kindly forward your requisite documentations for Loan application for the acquisition of Asset

      Reply
  4. Aderemi Oyebamiji

    I want to make enquiry on the acquisition of trucks for services stations (petrol/gas stations). Can a new investor with his own equity benefit from this $200 million local content fund. I am passionate to start this business. Thanks.

    Reply
  5. Matthew Ojugo

    sir
    please can we apply for this intervention fund to doing oil and gas trading downstream in an oil producing commities . we have a tank farm in koko delta state. the loan is to enable us buy petroleum product and sell from our tank farm

    Reply
  6. Dominic Renner

    DAMARA GLOBAL ENTERPRISES NIG LTD is an indigenous oil and gas servicing company and committed to local content development in Nigeria. We are suppliers of petroleum products, procurement, supply chain management and general contractors in the oil and gas industry. We are confident to be strong participants in this noble drive of the NCDMB. We here by wish to use this medium to officially apply for the program NCDIF.

    Reply
  7. joshua okogun

    I will like to benefit from this opportunity i am manufacturer i need found to improve this is my phone number 07056651276.

    Reply
  8. Jude ezeobi

    Dear Sir,

    We have a new oil and gas service company and will need the NCIF for contract financing, but we are starters and do not have the NCIF ID, so how do we go about it for the application to proceed.

    Thanks

    Reply
  9. Geanje Nigeria Limited..

    We are Geanje Nigeria Limited, we are into oil and gas services. How can we access this facility?. Please reply our mail.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.