Nigerian
Content Development and Monitoring Board (NCDMB) has stated that efforts are in
the pipeline to grow Nigerian Content in the gas and oil industry from its
present 27% to 70% in 10 years.
The board
made the disclosure during a Capacity Building
Workshop for the Media which
held at Sheraton Hotel, Ikeja, Lagos on Monday.
Director of
Finance and Personnel Management of the board, Isaac Iyalah presenting a paper
titled, Overview on NCDMB, its mandate, history, mission and strategic
relevance to the development of the nation’s oil and gas industry also stated
that $200 million Fund which is managed by the Bank of Industry is to boost
local content in the oil and gas industry.
Iyalah also
added that through the local content policy managed by the board there has been
an upsurge in indigenous participation in the oil and gas leading to Nigerian
firms now owning 34% of Marine Vessels in the industry.
Speaking
also on the vision and mission of NCDMB, Iyala said, “The Nigeria Content
Development and Monitoring Board, was established by the Nigerian Oil and Gas
Industry Content Development Act (NOGICD) of 2010. The vision of which was to
act as catalyst for the industrialization of the Nigerian Oil and Gas Industry
and its linkage Sectors”
He spoke
further that “The mission was to promote the development and utilization of the
in-country capacities for the industrialization of Nigeria through the
effective implementation of the Nigerian Content Act.”
Key Trust of
the NOGICD Act that created NCDMB among others was to integrate oil producing communities
into the oil and gas value chain, foster institutional collaboration, maximize
participation of Nigerians in the oil and gas activities, Link oil and gas
sector to other sectors of the economy, maximize utilization of Nigerian
resources and attract investments to the Nigeria Oil and gas sector which
include service providers, equipment supplies.
He said part
of the functions of NCDMB include to review, access and approve Nigerian
Content plans developed by Operators; set guidelines and minimum content levels
for project related activities across the oil and gas value chain; engage in
targeted capacity building interventions that would deepen indigenous
capabilities, human capital development, infrastructure and facilities,
manufactured materials and local supplier development; among others.
General
Manager, Nigerian Content Development Fund (NCDF), Obinna Ofili who spoke on the
paper titled “Introduction to the Nigerian Content Intervention Fund (NCIF),
Providing an Understanding of the Objective of the Fund, the Procedures for
Accessing it and Target Businesses, said the Nigerian Content Intervention Fund
(NCI) Fund is a pool of funds made available by the Nigeria Content Development
and Monitoring Board (NCDMB) to be managed by the Bank of Industry to meet the
funding needs of Indigenous manufactures, service providers and other key
players in the Nigerian Oil and Gas industry.
He stated
that “it is sourced from the Nigerian Content Development Fund (NCDF) created
by section 104 of the Nigerian Oil and Gas Content Development (NOGICD) Act).”
According to
the NOGICD Act companies are mandated to pay 1 per cent of any contract which
has been concluded in the oil and gas industry in Nigeria.
Part of reason
for the creation of NCI, he said was to reengineer the operations of the NCDF,
increase access to funding and grow indigenous participation in the oil and gas
industry; to increase access to NCDF; to provide single digit interest loan and
enhance competitiveness of indigenous companiesservicing the oil and gas
industry.
Ofili said the
fund is accessible to contractors as well as community contractors of any of
the oil producing communities.
He also
explained available types of funding under the NCI Fund which include
Manufacturing loan; Asset Acquisition, Contract Finance, Community contract
finance scheme and Loan-Re-financing, adding that $10 million remains the maximum
amount accessible by an applicant under the manufacturing and Asset acquisition
loans. He stated that while Contract Finance loan is $5million and Community
contract finance scheme N20million, Loan Re-financing is $2million.
Ofili stated
that no applications for two different loans can running simultaneously.
While
stating that the tenure for all the available loans under the NCI Fund is 5 years
maximum, he added that the Fund attracts 8% interest with exception of the
community contract finance scheme which attracts 5%.
Other papers
that featured at the workshop include Strategies and Techniques for Effective
Media Coverage of the Energy Sector in Nigeria: The NCFI Dimension which was
delivered by Visiting Member of the Editorial Board of Businessday and Adjunct Faculty School of Media &
Communications, Pan Atlantic University, Chido Nwakanma.
Current
Trends & New Themes in Energy and Business Reporting was delivered by Austin Nweze of
School of Media and Communication, Pan Atlantic University.
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