By Adewale Sanyaolu
The Nigerian Content Development and Monitoring Board(NCDMB) says its fund managers(Bank of Industry) has so far disbursed $293.3 million and N32.8 billion to 61 firms under its Nigerian Content Intervention Fund(NCIF).
The loan disbursement figures were disclosed by the General Manager, NCIF and Treasury, Mr. Obinna Ofili, at the Nigerian Content Capapcity Building Workshop for media stakeholders in Lagos.
He stated further that total balance with BoI is $31.5 million and N3.11 billion as at November 2022 while total money creation by loan disbursements so far amounts to about $25 million and N34 billion respectively.
Ofili added that reports from Bol indicated that the NCIF managed by the bank till date has recorded zero per cent non- performing loan (NPL).
The NCDF boss said the Board was proud to have experienced and skilled counterpart, saying Bol is the leading DFI in Nigeria with an NPL below five per cent, a feat which he described as unprecedented by any Deposit Money Bank in Nigeria.
NCDMB collaborated with Development Banks with focus on development and not just Profit. NEXIM Bank is focused on financing companies to break into the Service sector in Africa and become big corporate.”
He explained that the Nigerian Content Development Fund (NCDF) is a special Fund created by the enabling law to finance Nigerian Content development in the Nigerian oil and gas industry.
“Covered Entities are required to deduct and remit obligations accruing there to into the Nigeria Content Development Fund while covered Entities have responsibility to ensure their affiliates and contractors comply with the provisions of the Act.”
He maintained that NCDMB is empowered to manage and administer the Fund which is deployed to increase capacity and capability of Nigerians and Nigerian companies operating in the Nigerian oil and gas industry.
‘‘The OAGF, via its Revenue and Investments Department, reviewed the Fund in 2014 and determined it does amount to Government revenue.”
Making further clarification on the NCDF,Ofill said the NCDF cannot be interpreted as the same as, or placed in the same basket with, the funds/revenues of the Board (investment income, Appropriation proceeds when the Board was still Government-funded, grants, donations and loans).
According to him, Seed funds for the Nigerian Content Intervention Fund is sourced from the Nigerian Content Development Fund, which is derived from section 104 of the NOGICD Act 2010.
He described some of the interventions by NCDMB as catalyst for manufacturing and production, saying that the Investments catalyzed local refining from the first modular refinery in Nigeria currently refining 10,000 barrels per day.
‘‘Equity Investments have instigated local industrial activities in areas hitherto not in Nigeria, such as base oil, industrial paints and pipe. Investments are at various stages of implementation but most are yet to commence yielding dividends.
NCI Fund compliments equity funds availed by NCDMB to bridge gaping financing gaps in critical ventures. The investments span over 16 states of the Nigerian Federation and expected to spread to several others in the near future.”