The Nigerian Content Development and Monitoring Board and the Bank of Industry have amended their Memorandum of Understanding for the $50 million NOGaPS Manufacturing Fund.
The Punch reported that NCDMB established the fund, which is domiciled at BoI, to encourage oil and gas equipment manufacturers to the Nigerian Oil and Gas Parks Scheme.
The fund’s goal is to provide industrial companies access to affordable financing.
According to NCDMB, the modified MoU was signed in Lagos during the Nigerian Content Intervention Fund’s 2023 second-quarter Review Meeting.
In his remarks, NCDMB Executive Secretary Simbi Wabote emphasized NCIFund’s outstanding achievement in catalyzing capacity development and investments in the Nigerian oil and gas industry.
He hinted that the fund functioned as a model for local content practice across the African continent, inspiring the African Petroleum Producers Organisation to establish the African Energy Bank in collaboration with the African Export Bank.
He stated that countries such as Angola and Namibia were currently approaching the board in order to learn the workings of the NCI Fun and duplicate it in their respective territories.
“Today, Angola is thinking of establishing a similar credit line for their oil and gas companies,” Wabote said. I believe the parliament recently allocated some funds for them to administer in this regard. Namibia intends to do the same with the eventual implementation of a Local Content Act.”
Wabote also praised the Bank of Industry for its achievements in the management of the NCI Fund, stating that the Board will continue to seek new ways to expand its collaboration with the BoI.
“Considering the effectiveness and success recorded by BoI, NCDMB may consider inviting BoI to send a nominee 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.”
The Managing Director of the Bank of Industry, Olukayode Pitan, expressed confidence in the future performance of the board’s funds domiciled with the bank.
He mentioned that the quarterly review sessions would have an impact on maintaining effective disbursements and recovering those amounts.
According to him, the NCI Fund is operating admirably, with 194 applications totaling $1 billion (N80.6 billion) and 69 disbursements totaling $324 billion (N38.4 billion) as of the reporting date.
In 2018, the board formed the NCI Fund with the goal of financing oil and gas companies in order to improve capacity and increase Nigerian content in the industry.
