NCDMB, BoI partner on oil, gas park fund scheme

The Nigerian Content Development and Monitoring Board (NCDMB) has  brokered  a  partnership with the Bank of Industry (BoI) for industrial parks fund to  encourage  in-country manufacturing across the oil and gas value chain.

Executive  Secretary,  NCDMB, Mr Simbi Wabote,  during the signing of Memorandum of Understanding (MoU) on Wednesday in Lagos, said the two parks were located at Bayelsa and Cross River States.

Wobote said the BoI would bring to bear its developmental stride and  provide counterpart funding in support of indigenous manufacturing companies.

He lauded the BoI for the successful disbursement of the $300 million Nigerian Content Development Fund (NCDF) to over 60 eligible beneficiaries to solve funding issues in the oil and gas sector.

He, however, noted that the park scheme partnership was different as applicants  needed not to be contributors to the Nigerian Content Development Fund (NCDF).

Wabote  said the fund would support businesses that want to establish themselves within the industrial parks built by the NCDMB as long as they were domiciled and manufactured within the parks.

He added  that  some of the benefits of the parks include incentivised loan scheme and accommodation,  training  facilities and adequate  security infrastructure.

Others, he said, are free rent until the  businesses  start  manufacturing and making  money, a one-year moratorium  and  a five-year pack-back period for  potential  occupants of the park.

“We have two of those parks that are ready to be inaugurated before the end of the year and we are in the process of getting tenants into those parks to manufacture oil and gas equipment in the country.

“It is highly incentivised to encourage manufacturers to establish themselves at the parks.

“Today, we pride ourselves that about 98 per cent of contracts in the oil  and  gas  sector  are given to Nigerians.

“However, when you look really deep into the components and equipment used, you realise that the manufacturing capabilities of the country have been limited and so we want  to up the game in manufacturing with this initiative.

“The park is all-inclusive in terms of  24-hour security, services  and power which is one of the greatest challenges  for  manufacturers,” he said.

Also,  Managing Director, BoI, revealed that the $300 million NCIF to 62  indigenous  businesses  recorded close to 100 per cent  repayment.

Pitan encouraged manufacturers particularly  players in the oil  and gas sector to take advantage of  the spaces available at the parks and count on BoI to provide the necessary facilities to aid manufacturing.

“With the success of the NCIF, we have decided to extend the products and I tell you that the interest rates are very good; less than 10 per cent.

“The fund would ensure that Nigerian  companies  are  supported, the  factories are working and the local content in oil and gas sector becomes shored up,” he said.

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