The Managing Director of the Bank of Industry (BoI), Mr. Olukayode Pitan, has revealed a remarkable accomplishment. The Nigerian Content Intervention (NCI) Fund, fostered by the Nigerian Content Development and Monitoring Board (NCDMB) and managed by BoI, has channeled a substantial N38.4 billion to empower 69 companies hitherto.
The significant revelation transpired during a momentous event—the signing of the amended Memorandum of Understanding (MoU) for the $50 million NOGaPS Manufacturing Fund. This consequential signing was a cornerstone of the 2023 second-quarter Review Meeting of the NCI Fund.
With a steadfast outlook on the future, Mr. Pitan expressed profound confidence in the Board’s funds sheltered within BoI. He astutely noted the influential impact these quarterly review meetings bear in perpetuating effective disbursements and the eventual recovery of these instrumental funds.
Initiated in 2018 by the NCDMB, the NCI Fund stood as a beacon of financial support for oil and gas companies with a vision to bolster capacity and amplify Nigerian Content within the sector. As it stands, the NCI Fund comprises five pivotal product lines managed adeptly by BoI. These encompass Manufacturing Finance ($10 million), Asset Acquisition Finance ($10 million), Contract Finance ($5 million), Loan Refinance ($10 million), and Community Contractor Finance ($20 million).
Meanwhile, a progressive stride towards strengthening the oil and gas equipment manufacturing sector has been made through the collaboration between NCDMB and BoI. An amendment to the MoU pertaining to the $50 million NOGaPS Manufacturing Fund has been inked, reflecting the commitment to attract manufacturers to the Nigerian Oil and Gas Parks Scheme (NOGaPS) facilities. This resolute endeavor aims to enrich the ecosystem by fostering accessibility to affordable finance for manufacturing entities.
The unveiling of the $50 million NOGaPS Fund in March 2023 served as a catalyst to incentivize companies seeking to domicile their operations and produce oil and gas equipment components within the NCDMB oil and gas parks—a strategic initiative spanning various locations across Nigeria, with active sites in Bayelsa and Cross River State.
Venturing beyond, the NCDMB has meticulously curated a comprehensive financial ecosystem to fuel growth in the oil and gas sector. Among these remarkable endeavors are the $30 million Working Capital Fund for oil and gas service companies and the $20 million Fund for Women in Oil and Gas Intervention. These two instrumental facets are meticulously overseen by the Nexim Nigerian Export-Import Bank, with agreements inked in mid-2021.
In a testament to resounding achievement, Mr. Simbi Kesiye Wabote, the Executive Secretary of NCDMB, hailed the NCIFund’s monumental role in igniting capacity development and investments within the Nigerian oil and gas landscape. This laudable model has inspired the inception of the African Energy Bank—a visionary partnership between the African Petroleum Producers Organization (APPO) and the African Export Bank (Afreximbank). With unwavering commitment to the cause, Wabote revealed that countries such as Angola and Namibia are seeking insights into the NCI Fund’s workings, with aspirations to replicate its success.
In Mr. Wabote’s words, “Today, Angola is thinking of establishing a similar credit line for their oil and gas companies. I think the parliament recently approved some sum of money for them to manage in that respect. Namibia is planning to do the same with the potential enactment of a Local Content Act.”
Acknowledging the exemplary performance of BoI, Wabote extended his commendation, vowing to enhance collaborative efforts. In an inspiring projection, he hinted at inviting BoI to appoint an independent Director who could serve as a valuable asset on the Board of Directors for companies where equity investments have been made. This strategic move aims to address governance, liquidity, and technical optimization matters and further foster an environment conducive to progress.
