The Federal Government has spent a total of N2 trillion ($4 billion) on the development of local content in the past twelve years.
A document on the “Nigerian Content Intervention Fund” presented by the General Manager, Nigerian Content Development Fund & Treasury Management, an arm of the Nigerian Content and Development Monitoring Board, Obinna Ofili, stated that the fund was created to implement the development of indigenous companies in the nation’s oil and gas industry.
The Nigerian Content Intervention Fund with Bank of Industry was valued at $300 million, the NCDMB Research & Development Fund with the Central Bank of Nigeria at $50 million, the Working Capital & Capacity Building Fund with NEXIM Bank at $30 million, and the Women in Oil & Gas Fund with NEXIM Bank at $20 million, according to a breakdown of the N2 trillion ($4 billion) already spent.
Additionally, the NOGAPS Manufacturing Fund with Bank of Industry was valued at $50 million, and the NCDMB Direct Interventions through Equity Investments were valued at $3 million.
According to the NCDMB, 70% of the fund was used for commercial intervention, which supported commercial activities in the oil and gas industry. The remaining 30% was used for working capital, contract and project execution, asset acquisition, loan refinancing, special project vehicles, specialized projects, and equity investment.
He said that the remaining 30% went toward spending on capacity building.
The Nigerian Oil and Gas Industry Content Development Act, which went into force on April 22, 2010, created the NCDMB as a federal agency.
The board is in charge of creating, executing, and overseeing programs that guarantee the constant expansion of indigenous content in Nigeria.
It has played a crucial role in the growth of the nation’s hydrocarbons industry and the local enterprises that have benefited from its efforts.
The board stated that the payouts from the $300 million fund with the BoI were $293 million and N32.8 billion. The entire balance with BOI as of November 2022 was $31 million and N3 billion, it was added.
A total of around $25 million and N34 billion was generated from loan disbursements.
The final number of beneficiaries was 61 enterprises, with disbursements totaling $293 million and N33 billion as of Q3 2022, despite the fact that the BOI had received applications totaling $869 million and N78 billion from 169 companies.
