The Nigerian Content Development and Monitoring Board (NCDMB) has provided a $200 million in the Nigerian Content Intervention Fund (NCIF) to support indigenous participation in the oil and gas sector.
Giving this hint during an interactive session with journalists at the corporate headquarters of the board in Yenagoa, Bayelsa State, the Executive Secretary, Mr Simbi Wabote, explained that one of the key targets of the Board’s 10-year strategic plan, was to create over 3,000 jobs.
While noting that since the Local Content Act was enacted in 2010, the Oil and Gas sector had witnessed growth in terms of fabrication activities locally, the industry expert said that before the Act was enacted, “out of the about 20 billion dollars, which the Industry spends in its annual activities, less than 3 per cent remained in the country”.
Wabote disclosed that the board also targeted, as part of the 10-year strategic plan, to generate about $14 billion out of the about $20 billion spent within the country annually.
He hinted that out of the $14 billion, over $5 billion had been conserved due to policies of the board as well as the implementation of the Act.
Listing high interest rate as one of the challenges indigenous operators in the hydrocarbon resources sector usually face, Wabote said the NCDMB, working in partnership with stakeholders, has now been providing facilities with a single digit interest rate of 8 percent.
“But aside from that, we also have a facility for contract financing for those that have short term contracts to access up to $15 million at the rate of 8 percent.” Wabote said.
However, he explained further that community contractors can access up to $20 million with an encouraging interest rate of five percent that can span up to five years.
“For anybody to access the fund, which is being managed by the Bank of Industry, such beneficiary must be a contributor to the fund. The fund is contributed by contractors that execute business in the oil and gas sector,” he said.