The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BoI) have officially amended their Memorandum of Understanding (MoU) concerning the Nigerian Oil and Gas Park Scheme (NOGaPS) Manufacturing Fund, which amounts to $50 million.
This collaborative fund, initiated by NCDMB and administered by BoI, has been established to incentivize oil and gas equipment manufacturers to engage with the facilities within the Nigerian Oil and Gas Parks Scheme (NOGaPS), a project spearheaded by NCDMB. Its overarching goal is to enhance the accessibility of affordable financing options for these manufacturing entities.
The signing of this revised MoU took place during the second quarter Review Meeting of the Nigerian Content Intervention Fund (NCIFund) in Lagos over the weekend.
Engr. Simbi Kesiye Wabote, the Executive Secretary of NCDMB, highlighted the substantial achievements of the NCIFund in bolstering capacity development and investments within Nigeria’s oil and gas sector. He emphasized that this fund serves as a notable model for promoting local content practices throughout Africa. Furthermore, he cited its influence in the establishment of the African Energy Bank, a collaborative effort between the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank).
Wabote revealed that countries like Angola and Namibia are actively seeking insight from NCDMB about the operations of the NCI Fund, with the intention of replicating its success in their own jurisdictions. Angola, for instance, is contemplating the creation of a similar credit line to support its oil and gas companies, while Namibia is considering the implementation of a Local Content Act.
Commending BoI for its effective management of the NCI Fund, Wabote expressed interest in exploring further collaborations with the bank. He suggested that BoI might be invited to nominate an independent Director to the Board of Directors of companies in which NCDMB has invested equity. This strategic move could help address issues related to governance, liquidity, and technical optimization.
Similarly, Mr. Olukayode Pitan, the Managing Director of BoI, expressed confidence in the future performance of the funds entrusted to the bank by NCDMB. He emphasized the role of quarterly review meetings in sustaining the efficient disbursal and recovery of funds.
As of the reporting period, the NCI Fund has witnessed exceptional performance, attracting 194 applications totaling $1 billion (or ₦80.6 billion). Out of these, 69 disbursements have been made, amounting to $324 million (or ₦38.4 billion).
The inception of the NCI Fund dates back to 2018, when it was established by NCDMB with the primary aim of providing financial support to oil and gas companies. This assistance is designed to foster capacity growth and boost Nigerian participation in the industry. Managed by the Bank of Industry, the fund is structured into five distinct product lines: Manufacturing Finance ($10 million), Asset Acquisition Finance ($10 million), Contract Finance ($5 million), Loan Refinance ($10 million), and Community Contractor Finance (₦20 million).
