NCDMB, NEXIM sign $30m capacity building fund
The Nigeria Content Development and Monitoring Board (NCDMB) and the Nigeria Export Import Bank (NEXIM) have signed a $30 million Capital and Capacity building fund for the nation’s oil and gas servicing sub-sector.
Executive Secretary, NCDMB, Simbi wabote, said at the signing ceremony in Abuja on Wednesday that the fund would go a long way to stabilise the sector.
“I want to commend Oil Producers Trade section (OPTS) because 98 per cent of the fund that we utilise in NCDMB are contributed by the OPTS members who generate these money for us. I know that OPTS and Independent Petroleum producers Group (IPPG) at some point had raised concern before NCDMB that inability of most of the indigenous contractors to provide service to them was due to fund challenges, especially when we got struck by COVID-19”.
“I recalled receiving several letters, particularly from IPPG trying to see how we support this and also I recall receiving similar letters from Petroleum Technology Association of Nigeria (PETAN) when the COVID-19 struck. And most people have nothing to do anymore because companies were shut down while most of them in operation are threatening to downsize or downward review of their pay roll”.
“Based on this, we then set up a committee to see how we can support. This funding scheme is a working capital intervention which is happening with NEXIM bank.Our other intervention fund is still with Bank of Industry (BOI) and it has been very successful with almost 98 per cent compliance in terms of pay back of the loan.
“So the roll out date for this new scheme is expected to be July1, 2021 and the fund size is $30 million and it will be boosted by matching fund of the same amount to be provided by NEXIM bank in Naira, to be converted at the prevailing official exchange rate.