A modification to the Memorandum of Understanding on the $50 million NOGaPS Manufacturing Fund has been signed by the Bank of Industry and the Nigerian Content Development and Monitoring Board.
In order to entice manufacturers of oil and gas equipment to the Nigerian Oil and Gas Parks Scheme it developed, the NCDMB formed the fund and had it deposited in BoI.
The fund aims to provide industrial companies’ access to inexpensive financing.
The updated MoU was signed in Lagos during the Nigerian Content Intervention Fund’s second quarter review meeting in 2023, according to a statement from NCDMB.
In his remarks, NCDMB Executive Secretary Simbi Wabote emphasized the NCIFund’s outstanding success in promoting investments and the development of capability in the Nigerian oil and gas sector.
He made a suggestion that the fund was used as a template for local content policies across the African continent and served as the impetus for the African Energy Bank, which was established by the African Petroleum Producers Organisation in collaboration with the African Export Bank.
He continued by saying that nations like Angola and Namibia were now speaking with the board in an effort to understand how the NCI Fun operated so they might imitate it in their own countries.
According to Wabote, “Today, Angola is considering setting up a comparable credit line for their oil and gas industries. I believe the parliament recently gave them a budgetary amount to manage in that regard. Namibia intends to take a similar action with the likely adoption of a Local Content Act.
Wabote also expressed his gratitude to the Bank of Industry for its handling of the NCI Fund and assured that the Board would continue to explore for ways to strengthen its relationship with the bank.
The NCDMB may think about asking BoI to submit a nominee who will serve as an independent Director to the Board of Directors of some of the companies in which we have invested equity in light of the effectiveness and success documented by BoI, he said. This will assist them in resolving some of the current governance, liquidity, and technical optimization problems.
Olukayode Pitan, the managing director of the Bank of Industry, stated his own faith in the board’s funds housed in the bank’s future success.
He pointed out that the quarterly review sessions would have an impact on maintaining the efficient disbursements and recovery of those money.
He claims that the NCI Fund is operating at an excellent level, with 194 applications totaling $1 billion (N80.6 billion) and 69 payouts totaling $324 billion (N38.4 billion) as of the reporting day.
In order to finance oil and gas businesses’ capacity expansion and the expansion of Nigerian Content in the Industry, the board created the NCI Fund in 2018.
