Energy
NCDMB, BOI sign amendment of MoU on $50m NOGaPS manufacturing fund
The Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry (BoI) have signed an amendment to the Memorandum of Understanding (MoU) on the $50million NOGaPS Manufacturing Fund.
The Fund was created by the NCDMB and domiciled with BoI to attract oil and gas equipment manufacturers to the Nigerian Oil and Gas Parks Scheme (NOGaPS) facilities established by the NCDMB, and increase access to affordable finance by the manufacturing entities.
The signing of the amended MoU took place in Lagos on Friday at the 2023 second quarter Review Meeting of the Nigerian Content Intervention Fund (NCIFund).
In his remarks, the Executive Secretary, NCDMB, Engr Simbi Kesiye Wabote underlined the tremendous success of the NCIFund in catalysing capacity development and investments in the Nigerian oil and gas industry.
He hinted that the Fund serves as a model for local content practice across the African continent and inspired the creation of the African Energy Bank by the African Petroleum Producers Organization (APPO), in partnership with the African Export Bank (Afreximbank).
He added that countries like Angola and Namibia are currently engaging the Board, with a view to understand the workings of the NCI Fund, so as to replicate same in their jurisdictions.
In Wabote’s words: “Today, Angola is thinking of establishing a similar credit line for their oil and gas companies. I think the parliament recently approved some sum of money for them to manage in that respect. Namibia is planning to do the same with the potential enactment of a Local Content Act.”
Wabote further commended the Bank of Industry for the successes being recording in the management of the NCI Fund, assuring that the Board will continue to look for other opportunities to increase its partnership with BoI.
He said, “Considering the effectiveness and success recorded by BoI, NCDMB may consider inviting BoI to send a nominee that will act as independent Director to the Board of Directors of some of the companies that we have invested equity in. This will help them overcome some of the prevailing issues around governance, liquidity and technical optimisation.”
On his part, the Managing Director of the Bank of Industry, Mr Olukayode Pitan expressed confidence in the future performance of the Board’s funds domiciled in the bank while noting that these quarterly review meetings will impact on sustaining the effective disbursements and recovery of these funds.
According to him, the NCI Fund is performing excellently with 194 applications equalling US$1 billion /¦ 80.6 billion with 69 disbursements totalling US$324 million /¦ 38.4 billion as at the day of reporting.
The Board established the NCI Fund in 2018 with the purpose of financing Oil and Gas companies to increase capacity and grow Nigerian Content in the Industry Presently, the NCI Fund has five product lines which are being managed by the Bank of Industry. They include – Manufacturing Finance -$10m; Asset Acquisition Finance -$10m; Contract Finance -$5m; Loan Refinance -$10m and Community Contractor Finance – ¦ 20 million.
The US$50 million NOGaPS Fund was launched as a separate product in March 2023 to incentivise companies that will be domiciled and manufacture oil and gas equipment components within the NCDMB oil and gas parks being established at different locations across the country, with the sites in Bayelsa and Cross River State open for occupation.
The Board also has a US$30 million Working Capital Fund for oil and gas service companies and US$20m Fund for Women in Oil and Gas Intervention Fund. The last two facilities are administered by the Nexim Nigerian Export-Import Bank and the agreements were signed in mid-2021.
In line with the Electricity Act 2023, the Nigerian Electricity Regulatory Commission, NERC, issued an order transferring regulatory oversight of the electricity market in Imo to the Imo State Electricity Regulatory Commission.
This was contained in a recent order signed by NERC Chairman Sanusi Garba.
The order shall take effect on July 1, 2024.
The implication is that Imo State will be responsible for the complete regulation of its electricity market.
The order stated: “Section 230 (3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate electricity market from NERC to ISERC upon receipt of formal notification from the State
“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.
“EEDC shall identify the actual geographic boundaries of Imo State and carve out its network in Imo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Imo State into another state.”
With the development, Imo becomes the fourth state to get electricity regulatory authority after Enugu, Ondo and Ekiti states.
Benin Electricity Distribution Company, BEDC, has announced a two-month power outage in Ondo and Ekiti states.
BEDC, which disclosed this in a public notice, attributed the service interruption to critical maintenance work.
The planned power interruption will commence on Monday, July 1, 2024, and end on August 31, 2024.
During this period, BEDC stated that power supply would be interrupted for nine hours daily, from 8:00 am to 5:00 pm.
Protecting and rehabilitating Africa’s natural carbon sinks, such as forests, oceans, coastal mangroves, wetlands and grasslands can significantly aid in mitigating the effects of climate change, Ejiro Gray, Director, Governance and Sustainability, Sahara Group has said.
Speaking at the maiden edition of Asharami Square, Sahara Group’s initiative aimed at promoting sustainability through media advocacy, Gray said that developing intentional policies and investments on protecting the continent’s carbon sinks would enhance carbon sequestration and reduce net emissions.
She said these natural landscapes act as significant carbon reservoirs, absorbing and storing carbon dioxide (CO‚ ) from the atmosphere, adding that developing reforestation and afforestation programs, implementing strict conservation policies, and providing financial incentives for conservation projects are critical for combating climate change in Africa.
According to Gray, Natural Gas Development and Commercialisation, Increase Use of Renewables, investment in low-cost/low emissions clean energy solutions, Carbon Capture Storage/Carbon Capture and Reutilisation are other factors that can help accelerate Africa’s march towards sustainability.
“Natural gas presents a viable opportunity to serve as a transition fuel as Africa continues to gradually invest in renewable energy. It is a relatively clean-burning fossil fuel, producing fewer CO‚ emissions compared to coal or petroleum.
“In 2021, Africa’s natural gas reserves totalled over 620 trillion cubic feet. By developing and monetizing these reserves through processing and eventual usage of CNG, LNG, LPG and other gas products, Africa can leverage its natural gas resources to support sustainable energy development,” Gray said.
Speaking on the role of the media in promoting sustainability, Head, Corporate Communications at Sahara Group, Bethel Obioma, said Africa needs to articulate and promote a robust sustainability narrative that leaves no one behind in issues relating to climate change, energy access and energy transition, among others.
“To achieve this, Sahara Group hopes to make Asharami Square a formidable platform through advocacy and collaboration towards shoring up capacity and participation of all segments of the media to drive accuracy, clarity, impact, positive policy formulation, agenda-setting and collective action,” he said.
Obioma said Asharami Square would feature mentoring, training, exchange programs, facility tours for media practitioners and competitions to recognise and celebrate exceptional reporting of sustainability in the media.
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