NCDMB, BOI modify MoU on $50 million NOGaPS Manufacturing Fund

A modification to the Memorandum of Understanding on the $50 million NOGaPS Manufacturing Fund has been signed by the Nigerian Content Development and Monitoring Board and the Bank of Industry.

In order to draw manufacturers of oil and gas equipment to the Nigerian Oil and Gas Parks Scheme it developed, the NCDMB formed the fund and had it deposited in the BoI.

Increasing industrial companies’ access to affordable financing is the goal of the fund.

According to a release from NCDMB, the updated MoU was signed in Lagos during the Nigerian Content Intervention Fund’s second quarter review meeting in 2023.

Simbi Wabote, the executive secretary of NCDMB, highlighted in his remarks the NCIFund’s outstanding accomplishments in promoting investments and capacity building in the Nigerian oil and gas sector.

He made a suggestion that the fund was used as a template for local content policies across the African continent and that it served as the impetus for the African Energy Bank, which was established by the African Petroleum Producers Organisation in collaboration with the African Export Bank.

In order to understand how the NCI Fun operates so that they may imitate it in other countries, he noted that Angola and Namibia were currently contacting the board.

According to Wabote, “Angola is currently considering establishing a similar credit line for their oil and gas industries. I believe that recently, the parliament gave them a budgetary amount to manage in that regard. With the prospective adoption of a Local Content Act, Namibia intends to follow suit.

Wabote also praised Bank of Industry for managing the NCI Fund successfully and reaffirmed that the Board would keep looking for other chances to strengthen its relationship with BoI.

In light of the efficiency and performance demonstrated by BoI, he stated: “NCDMB may take into consideration inviting BoI to send a nominee who will serve as an independent Director to the Board of Directors of some of the companies in which we have invested equity. They will be able to get over some of the current problems with governance, liquidity, and technical optimization thanks to this.

Olukayode Pitan, the managing director of Bank of Industry, stated his own trust in the future performance of the board’s money housed in the bank.

He pointed out that maintaining efficient disbursements and recovering those cash will be impacted by those quarterly review meetings.

He asserts that the NCI Fund is operating at a high level, with 194 applications totaling $1bn (N80.6bn) and 69 disbursements totaling $324 (N38.4bn) as of the reporting date.

In order to finance oil and gas enterprises to expand their capacities and boost Nigerian content in the industry, the board established the NCI Fund in 2018.