The Nigerian Content Development and Monitoring Board and the Bank of Industry have signed an amendment to the Memorandum of Understanding on the $50m NOGaPS Manufacturing Fund.
The fund was created by the NCDMB and domiciled with BoI to attract oil and gas equipment manufacturers to the Nigerian Oil and Gas Parks Scheme it established.
The fund is aimed at increasing access to affordable finance by manufacturing entities.
In a statement, NCDMB said the signing of the amended MoU took place in Lagos at the 2023 second quarter Review Meeting of the Nigerian Content Intervention Fund.
In his remarks, the Executive Secretary of NCDMB, Simbi Wabote underlined the tremendous success of the NCIFund in catalysing capacity development and investments in the Nigerian oil and gas industry.
He hinted that the fund served as a model for local content practice across the African continent and inspired the creation of the African Energy Bank by the African Petroleum Producers Organisation, in partnership with the African Export Bank.
He added that countries like Angola and Namibia were currently engaging the board, with a view to understanding the workings of the NCI Fun to replicate the same in their jurisdictions.
In 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.”
Wabote further commended the Bank of Industry for the successes being recorded in the management of the NCI Fund, assuring that the Board will continue to look for other opportunities to increase its partnership with BoI.
He said: “Considering the effectiveness and success recorded by BoI, NCDMB may consider inviting BoI to send a nominee that will act as independent Director to the Board of Directors of some of the companies that we have invested equity in. This will help them overcome some of the prevailing issues around governance, liquidity and technical optimisation.”
On his part, the Managing Director of the Bank of Industry, Olukayode Pitan, expressed confidence in the future performance of the board’s funds domiciled in the bank.
He noted that those quarterly review meetings would impact sustaining the effective disbursements and recovery of those funds.
According to him, the NCI Fund is performing excellently with 194 applications equalling $1bn (N80.6bn) with 69 disbursements, totalling $324 (N38.4bn) as of the day of reporting.
The board established the NCI Fund in 2018 with the purpose of financing oil and gas companies to increase capacity and grow Nigerian Content in the Industry.