Why $200M is being injected in Local content- NDCMB


Why $200M is being injected in Local content- NDCMB

By Preye Ebiowei

The Nigerian Content Development and Monitoring Board (NCDMB) has explained the rationale behind the recently launched $200 million Nigerian Content Intervention Fund (NCIF).

The executive secretary, Engineer Simbi Wabote, has disclosed that the fund is targeted at deepening local content participation in the Oil and Gas industry in the country.

Wabote who disclosed this in Yenagoa, the Bayelsa State capital explained that as part of its 10-year strategic plan, the Board hopes to create over 3,000 jobs in the country including indirect employment.

According to him 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.

Wabote 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

“Out of the about $20 billion, which the Industry spends in its annual activities, less than 3% remained in the country while the rest is taken out, but after the implementation of the Act, about 5% has returned to the country. 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%. 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”