Sunday Ani

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, has warned operators in the oil and gas industry that the recently launched $200 million Nigerian Content Intervention Fund (NCIF) was not a national cake but targeted at deepening the local content participation in the industry in Nigeria.

Wabote who disclosed this in an interactive session with journalists at the corporate headquarters of the board in Yenagoa, the Bayelsa State capital, also said that as part of its 10-year strategic plan, the board hopes to create over 3,000 jobs in the country, including indirect employment.

He explained that since the Local Content Act was enacted in 2010, the oil and gas sector had witnessed tremendous growth in terms of what the country had been able to draw back and domicile locally.

He said: “Prior to the enactment of the Act, out of about $20 billion, which the industry spends in its annual activities, less than three per cent remained in the country, while the rest is taken out, but after the implementation of the Act, about 5 per cent has returned to the country.”

He noted that the aspiration of the board in terms of its 10 years strategic plan, was to have up to $14 billion out of the about $20 billion domiciled in the country annually. The critical success factor of the board, the Executive Secretary pointed out, has been the implementation of the Act itself.

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Wabote further disclosed that one of the major impediments for most Nigerians in the oil and gas sector was the cost of financing projects, which was put at between 15 per cent and 26 per cent.

But working in partnership with the board, he said the sector came up with the type of facilities that involves a large range of funding up to $10 million with a single digit interest rate of only 8 per cent.

“But aside that, we also have a facility for contract financing for those that have short term contracts  to access up to $15 million at the rate of 8 per cent.”

He further explained that the community contractors could access up to $20 million with an encouraging interest rate of 5 per cent that could span up to five years.

“This time, you will be able to get loan because you access it through personal guarantors of the promoter or with people that work in the ministry from Grade Level 12 and above or people that work in the bank.”

He, however, pointed out that the facilities are not a grant or a national cake to share, but strictly for the purpose of business.