NCDMB to reposition NCIF for higher impact
Sopuruchi Onwuka
The Nigerian Content Development and Monitoring Board (NCDMB) has tasked the custodians of the Nigerian Content Intervention (NCI) Fund and the parent Nigerian Content Development Fund (NCDF), to strive for greater efficiency and impact of the fund in meeting the agency’s mandate on national economic aspirations.
Executive Secretary, Engr. Felix Omotsola Ogbe, told the Bank of Industry (BOI) that there are plans to introduce some changes that will enhance the fund’s upshot and efficiency.
Engr. Omotsola Ogbe who was speaking at the quarterly engagement forum held with BoI gave a superlative appraisal of the fund, saying it has played a crucial role in transforming the Nigerian oil and gas industry.
The Oracle Today reports that BOI is one of the custodians and managers of the fund as the NCDMB seeks to soften the money market for local service providers and sundry indigenous players in the petroleum industry.
The engagement with the BOI came just days ahead of the commissioning of the Nedogas Gas Processing Plant and the Kwale Gas Gathering (KGG) hub developed by indigenous technology company, Xernegi, in funding partnership with the NCDMB.
Whereas the Nedogas processing plant strips different gas liquids from associated gas harnessed from clustered oilfields in the former OMl 56 oil block, the KGG provides infrastructure and technical services in helping gas producers in the area meet market quality specifications and feed their output into the national gas grid operated by a unit of the Nigerian National Petroleum Company (NNPC) Limited.
Both plants cut resource waste, reduce emission and raise economic value for the country and commercial investors.
Enger Ogbe stated that by providing essential financial support, the fund has empowered numerous Nigerian companies and fostered local capacity development and promoted sustainable growth. He added that the NCI Fund has also supported numerous projects, building capacities along the local value chain and fostering growth among Nigerian companies, he added.
He made it clear that the NCI Fund has been instrumental to driving and deepening local content development within the Nigerian oil and gas industry and its linkage sectors, adding that time has come for continuous improvement and innovation.
“We will be proposing several strategic changes that will further enhance the impact and efficiency of the NCI Fund.”
The Oracle Today recalls that the NCI Fund is a portion of the Nigerian Content Development Fund (NCDF), which was set up by section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. The NCDF is contributed by 1% percent deduction from every contract awarded in the upstream sector of the Nigerian oil and gas industry.
The NCDMB had deposited US$300m with the BoI, which had loaned out US$330m to 70 qualified oil and gas companies.
The additional $30m accrued from interests from the loans, according to records provided to the Board.
The NCI Fund is the most successful fund scheme in the country, considering the faithful repayment by the beneficiaries and the growth of the fund.
The Bank of Industry carries out quarterly project monitoring on the loan beneficiaries, while the NCDMB holds an annual monitoring review on the fund scheme and beneficiaries.
