NCDMB explains $200 million intervention fund
The Executive Secretary, Simbi Wabote, who disclosed this in a chat with journalists, at the corporate headquarters of the Board in Yenagoa, the Bayelsa State capital, also said, 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 has witnessed tremendous growth in terms of what the country has been able to draw back and domicile locally.
According to him, prior to the enactment of the Act, “out of the 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 five per cent has returned to the country”.
He explained that the aspiration of the Board in terms of its 10 years strategic plan, is 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.
“The Act has been very critical to the success we have achieved. Prior to now, we practiced what we call poles in terms of local content implementation.”
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 involve a large range of funding up to $10 million with a single digit interest rate of only eight per cent.
“ But aside from 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%.”
Explaining further, Wabote said for community contractors, they can access up to $20 million with an encouraging interest rate of five per cent that can 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.”
The Executive Secretary , however, pointed out that the facilities are not a grant or a national cake to share, but strictly for the purpose of business.
“For anybody to access the fund, which is being managed by the Bank of Industry, such beneficiary must be a contributor to the fund. The fund is contributed by contractors that execute business in the oil and gas sector,” he said.
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