BGL, Others design Nigerian Content Development Fund
Working with its joint financial advisers, BGL Plc and UBA Capital Limited, Nigerian Content Development and Monitoring Board NCDMB is on the verge of finalising the design and implementation of the Nigerian Content Development Fund.
According to the Executive Secretary of the NCDMB, Engr Ernest Nwapa, the Fund would among other things assist Nigerian oil service providers who have been awarded contracts by the Oil producing companies to access cheap and affordable credit facilities to execute these contracts.
He added that the Fund, when launched would also provide a platform for financing major capital projects which is critical to the Nigerian content development in the industry.
One of the major steps taken by the NCDMB and its joint financial advisers in carrying along all stakeholders is the engagement of the Nigerian oil service providers.
The meeting which was held at the Presidential Hotel in Port Harcourt had in attendance over 200 representatives of the Nigerian oil service providers across the industry value chain. The objective of the meeting was to present the Fund’s structure as well as its mode of operations.
In his remarks at the meeting, the Executive Secretary of the NCDMB, Engr Ernest Nwapa emphasized the resolution of the Board to implement the full force of the Act in funding infrastructure for the Nigerian oil service providers thereby increasing their participation in the industry.
Engr Ernest Nwapa also confirmed the Board’s plan to engage institutions like the Bank of Nigeria (CBN) and other fund providers to provide intervention support towards the creation of Funding options for Nigerian content development in the Oil and Gas Industry.
The NCDMB boss assured the participants that arrangements were being finalised with Nigerian Financial Institutions to provide credit facilities to Nigerian oil service providers; ‘’this is scheduled to commence formally in a couple of weeks”.
The Nigerian Oil and Gas Industry Content Development Act 2010 (NOGIC) was signed into law on the 22nd day of April, 2010 by the President and Commander in Chief of Armed
