61 Oil Firms Access $293.26m Of $300m NCDMB Intervention Fund

Sixty one companies in the oil and sector have accessed a total of $293.26 million (N32.8 billion) out of $300 million Nigerian Content Intervention Fund (NCIF) as at November 2022.

The fund created by the Nigerian Content Development and Monitoring Board (NCDMB), is managed by the Bank of Industry (BOI).

This was revealed by the General Manager, Nigerian Content Development Fund and Treasury, NCDMB, Dr. Obinna Ofili at a capacity building workshop for media stakeholders, Monday in Lagos, with the theme: “Enhancing Media Competencies to Support Nigerian Content in a Gas Economy.”

“Disbursements so far is $293.26m (N32.85billion). Total balance with BOI is $31.5m (N3.11billion) as at November 2022. Hence, total money creation by loan disbursements so far amounts to about $25m (N34billion),” Ofili stated.
The Nigerian Content Development Fund (NCDF) which is the source of the NCIF was established by section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 for the purpose of increasing Nigerian content in the oil and gas industry by addressing lack of funding faced by manufacturers, service providers and other key players.
The fund is derived from one per cent of every contract awarded in the upstream sector of the industry, and is managed by the board.

Apart from the BOI $300 million, there are other variants of the Nigerian Content Intervention Fund which include $50 million NCDMB Research & Development Fund with Central Bank of Nigeria, $30 million Working Capital & Capacity Building Fund with NEXIM Bank, $40 million Women in Oil & Gas Fund with NEXIM Bank, $50 million NOGAPS Manufacturing Fund with BOI, and $181 million (N3 billion) NCDMB Direct Interventions through Equity Investments.
Ofili in his presentation titled “Successes of Nigerian Content Intervention Fund” also disclosed that the NCI fund income amounted to $33.79 million (N1.78 billion).

Speaking on the ratio of loan approval to the application under the NCIF, he said that total applications received by BOI from 169 companies was $868.8 million and N 77.6 billion at end of third quarter 2022.

Ofili also disclosed that successful application closure in dollar was 34 per cent and 42 per in naira applications. He also revealed that money creation through NCIF loans was $25 million equivalent of N34 billion while the NCDF Growth from the fund managed by the Nigerian Export-Import Bank (NEXIM) Income reached $1.234 million.

According to him, while 61 companies accessed the BOI managed fund, four companies were beneficiaries of the fund managed by NEXIM making a total of 65 companies.

He added that 18 companies benefited from NCDMB’s equity investments.

On the key features of the NCI fund, the general manager explained that the loan is offered at maximum single digit interest rate of 8 per cent per annum and can be processed within 45 working days without any form of intrusion by the board, adding that 100 per cent of the credit risk is borne by the fund manager.
“We developed a web system of application. You don’t need to go out looking for where to find BOI to apply. All you need do is enter the portal, read the instruction and make your application, upload your documents and they process it. They don’t need to see you.”
“We agreed with BOI a maximum time of 45 working days. So, you can exceed the time so long the applicant has provided all the documents that are needed,” Ofilli added.

He said it was reduced to 21 working days at NEXIM bank.

Ofili noted that NCDMB created teams with requisite skills to deliver the best in line with its goal of deploying the highest standards in execution of projects.
He added that the board’s investments and funding interventions have catalysed a number of private establishments in the Nigerian oil and gas industry.