NCDMB Creates $ 30 Million Working Capital Fund for Local Oil Companies


By Obas Esiedesa – Abuja

The Nigerian Content Development and Oversight Council, NCDMB, has set up a working capital of $ 30 million to support indigenous oil and gas companies.

The fund, according to the NCDMB, will support the operations of local oil companies against the adverse effects of the COVID-19 pandemic, loss of contracts due to low oil prices and ensure that companies keep their staff in employment.

The Executive Secretary of NCDMB, Ing. Simbi Kesiye Wabote, who gave details of the fund at an event to sign an agreement with Nigerian import-export bank, NEXIM Bank, on Wednesday in Abuja, revealed that the launch date is July 1, 2021 .

He said NEXIM Bank would provide matching funds in the same amount in naira to the fund.

The revolving fund, he explained, is one of the newly introduced products in the Nigerian Content Intervention Fund (NCI Fund) approved by the NCDMB Board of Directors under the leadership of the Minister of State to Petroleum Resources, Chief Timipre Sylva.

Target beneficiaries include members of the Petroleum Technology Association of Nigeria, PETAN, and the Oil and Gas Trainers Association of Nigeria, OGTAN, who are commercially viable with a business relationship with an international oil company or a major oil company. Nigerian.

READ ALSO :

According to him, “the program would cover loans for working capital support and capacity building, bill discounting and capacity building, including the acquisition of low-end equipment to meet contracts. short-term service obligations “.

Wabote also explained that the maximum amount that can be borrowed by a single debtor is $ 1 million or its equivalent in naira, while the loan term would be up to 12 months for working capital loans and up to three years for capacity building loans with a moratorium. up to 12 months.

“The applicable interest rate will be 5% per annum all inclusive for loans denominated in dollars and 8% all inclusive per annum for loans denominated in naira and the rate will be fixed for the duration of the loan. The maximum processing time is 21 working days from the date on which the applicant has provided all the required documents, ”he added.

Transactions eligible for financial support include those related to petroleum service contracts, projects or contracts that strengthen the operations and viability of eligible service providers and transactions for the provision of low-end assets or other equipment. for the execution of an oil services contract from major CIOs / CNOs.

Wabote said the board’s arrangement with the Bank of Industry would continue.

He declared: “Our intervention with the Bank of Industry is very successful. We check the process periodically and we are 98% compliant in terms of loan repayment from creditors. “

Also speaking, the Managing Director of Nexim Nigerian Export-Import Bank, Mr. Abubakar Bello, explained that the financial institution is working with the NCDMB with the aim of helping local service companies to export their services outside of the country. country.

He said: “As the oil and gas industry in other African countries opens up, the capacities that have been built over time in the Nigerian oil and gas sector can be exported to other African countries and even outside of Africa.

“We will support the development of the capacities of local service providers to be able to take them to other oil economies. Since services provide over 15% of Nigeria’s gross domestic product, GDP, we should be able to delve into other climates. “

Breaking News Nigeria

About Donnie R. Losey

Check Also

Celonis Launches New Anti-Inflation Accounts Receivable Apps to Increase Working Capital and Reduce Costs

NEW YORK and Munich, Germany, November 9, 2022 /PRNewswire/ — CELOSPHERE 2022 – Celonisthe global …

Leave a Reply

Your email address will not be published.