The Nigerian Content Development Monitoring Board (NCDMB) has entered partnership with the Bank of Industry (BoI) with a view to increasing Nigeria’s current capacity of 10% for manufacturing oil and gas components, equipment and machinery.
The partnership was confirmed by the Executive Secretary of the NCDMB, Engr. Simbi Wabote at the signing of the NOGaPs Memorandum of Understanding (MoU) between the two organizations held in Lagos.
While noting that “the Nigerian oil and gas industry has awarded almost 98% of its contracts to Nigerians,” Engr. Wabote decried that “the country’s manufacturing capabilities for oil and gas equipment and components are limited, at less than 10%.”
“Hence, the aim of the partnership is to boost manufacturing by creating a conducive environment for businesses to thrive, thereby increasing in-country manufacturing.”
According to Engr. Wabote, “the partnership will see the NCDMB and BoI commit funds to encourage Nigerians to manufacture oil and gas equipment within the country.”
The NCDMB boss added that the funds will also “provide loans to support businesses that want to establish themselves in the industrial parks constructed by the NCDMB with an attractive interest rate of 8%, a one-year moratorium, and a five-year payback period.”
Speaking further, Engr. Wabote noted that two industrial parks, located in Bayelsa and Cross River State, are almost ready to be commissioned this year, and the Board is currently getting tenants into those parks to manufacture oil and gas equipment in the country.
On his part, the Managing Director of BoI, Olukayode Pitan, revealed that over 62 companies have benefitted from the Nigerian Content Intervention Fund (NCIF) $300 million facility that was disbursed to eligible companies to solve the funding challenge of the local supply chain in the oil and gas industry.
The beneficiaries went through a risk assessment by the bank and the Board before the funds were disbursed. The repayment ratio of the fund is close to 100%, with all loans performing.
Pitan encouraged manufacturers who are looking at the oil and gas sector, in particular, to take advantage of the industrial parks, which are of high quality and meet global standards.
He assured them that they could count on the BoI to get facilities to manufacture in-country, and that only serious companies will be able to access the fund.
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