By Yemie Adeoye

LAGOS — CHIEF executives and top management of Nigerian banks have pledged to provide long-term financing packages which local service companies need to build up their capacity to enable them perform major jobs in the oil and gas industry.

Over 25 bank chiefs who attended a meeting with the Executive Secretary of the Nigerian Content Development and Monitoring Board, NCDMB, Engr. Ernest Nwapa, in Lagos last week assured that the banking industry was willing to give medium and long-term loans to Nigerian service companies if the conditions were made favorable.

Their pledge followed explanations by Nwapa that for Nigerians to be fully integrated into the oil and gas industry and perform the bulk of jobs, banks will need to provide local service companies with long-term financing packages as against the current practice of financing procurement.

He said the implementation of the Nigerian Content Act was being constrained by the limitation of capacity of the Nigerian service companies, adding that the vision of the Act will not be achieved until Nigerian banks begin to provide service companies with long-term facilities to build capacity and acquire equipment needed to perform jobs.

In his comment, Managing Director designate of United Bank of Africa, Mr. Phillips Oduoza, explained that the Nigerian Content Act came into effect at a time when most banks were awash with liquidity and were seeking profitable ventures to finance.

He explained that for the implementation of the Act to be successful, the NCDMB and the banks needed to work together and tasked the NCDMB to conduct preliminary screening of service companies that would benefit from the banks’ facilities for capacity building.

He said the banks would insist that the beneficiaries imbibe financial discipline and would be willing to help Nigerian service companies to introduce proper accounting structures in their operations.

“They must execute jobs and return our money and we also expect international oil companies to ensure that domiciliation is in place,”he said.

Oduoza further charged the Board to secure a special fund for building up service companies.