From Uche Usim, Abuja
To cut back on huge spend on importation, the Nigerian Content Development and Monitoring Board (NCDMB) is planning to launch a $50 million fund for the
Nigerian Oil and Gas Parks Scheme (NOGAPS) product manufacturing line.
Its Executive Secretary, Simbi Wabote, disclosed this in a statement at the weekend while commissioning the ultra-modern valves assembling facility established by Catobi Nigeria Enterprises Limited in Port Harcourt, Rivers State.
The statement added that the fund would support oil and gas companies that would operate in the oil and gas parks developed by the Board in Bayelsa and Cross River states. The parks are expected to be commissioned and operational in the 4th quarter of 2022 and would incubate the manufacturing of equipment components utilised in the oil and gas industry and create an estimated 2000 jobs in each park.
“NCDMB understands the challenge associated with manufacturing, especially the reluctance of banks to extend loans to manufacturers because of the long repayment period for such facilities. He explained that the NOGAPS Manufacturing fund will soon be launched and will be managed by the Bank of Industry (BoI) to address the identified challenges.
“The new fund would be a stand-alone product line with distinct fund allocation and special eligibility criteria and collateral structure.
The decision of the Board to establish the product was informed by the peculiarities of the manufacturing sector, which include infrastructure challenges, long gestation, long lead time before returns, low margins on products, and high risk attached to the endeavor, in addition to the reluctance of commercial banks to lend to the sector and application of stiff collateral and eligibility criteria where loans are extended”, the statement explained.