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Board Earmarks $200m Fund To Boost Nigerians Participation In Oil Sector

The Nigerian Content Development and Monitoring Board (NCDMB) says it is setting aside a $200 million intervention fund to boost indigenous participation in the Nigerian oil and gas sector.
Tagged the Nigerian Content Intervention Fund (NCIF), the Executive Secretary of the NCDMB, Mr Simbi Wabote, said in Yenagoa, that the decision is part of its 10-year strategic plan, and through which the board hopes to create over 3,000 jobs in the country, including indirect employment.
He explained that the aspiration of the board in terms of its 10 year strategic plan; was to have up to $14 billion out of the about $20 billion annual industry spend retained within the country.
He pointed out that one of the major impediments for most Nigerians in the oil sector was high interest rates which is between 15 and 26 percent, to which he said the board, working in partnership with stakeholders in the sector came up with facilities that involved a large range of funding up to $10 million with a single digit interest rate of only 8 percent.
“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 8percent; for community contractors, they can access up to $20 million with an encouraging interest rate of 5percent that can span up to five years,” he said.
He however, emphasised that the facilities were not a grant or a national cake to share, but strictly for the purpose of business.
The Local Content Act was enacted in 2010 to boost indigenous participation in the oil and gas sector. The sector has since its enactment witnessed growth in terms of local fabrication activities.
Prior to the enactment of the act, it is estimated that out of the about $20 billion annual industry spend, less than 3 percent remained in Nigeria.

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