BY JIMITOTA ONOYUME
PORT HARCOURT— MANAGING Director, Nigerian Liquefied Natural Gas, NLNG, Limited, Mr. Babs Omotowo, has signed a Me-morandum of Understanding, MoU, with five banks to enable NLNG contractors and vendors access $1 billion credit facility.
The banks are Access, First, Standard Chartered, United Bank of Africa and Zenith.
Speaking at the ceremony in Port Harcourt, Mr. Omotowo said the essence of the credit scheme was to make contractors and vendors of NLNG access funds to enhance efficiency and effectiveness, noting that it was part of efforts to encourage participation of locals in line with the Nigerian Oil and Gas Industry Content Development Act of 2010.
Omotowo said: “Banks in Nigeria often find it challenging acceding to loan applications from local contractors with little or doubtful assurances of repayment.
“Local enterprises, which have little track record, credit history or liquid collateral are often refused finance. Banks perceive them to be risky.
“Today NLNG is taking a major step in bringing both potential lenders and borrowers together to bridge the financing gap that exists locally and alleviate funding challenges of vendors, reduce operating cost, improve project delivery timeline, and drive the growth of Nigerian vendors.”