NCDMB Disburses N32.8bn of $300m BoI-managed Intervention Fund to 61 Oil Firms

•Declares N1.78bn income growth from NCI Fund

Peter Uzoho

The Nigerian Content Development and Monitoring Board (NCDMB) said it has successfully disbursed a total of N32.8 billion out of its $300 million Nigerian Content Intervention Fund (NCIF) managed by the Bank of Industry (BoI) to 61 companies in the Nigerian oil and gas industry as at November 2022.

The General Manager, Nigerian Content Development Fund and Treasury, NCDMB, Dr. Obinna Ofili, disclosed this yesterday in Lagos, at the capacity building workshop for journalists, with the theme: “Enhancing Media Competencies to Support Nigerian Content in a Gas Economy”.

Ofili also revealed that the board’s NCDF growth from the NCI Fund income amounted to N1.78 billion, equivalent to $33.79 million.

“Disbursements so far is $293.26 million and N32.85 billion. Total balance with BOI is $31.5 million and N3.11 billion as at November 2022. Hence, total money creation by loan disbursements so far amounts to about $25 million and N34 billion,” he said.

On the ratio of loan approval to applications under NCI Fund, the general manager explained that total applications received by the BOI from 169 companies was $868.8 million and N77.6 billion as at end of third quarter 2022.

According to him, successful application closure in dollars stood at 34 per cent while 42 per cent was recorded for naira applications.

On the performance matrix of the intervention funds, Ofili said total applications received by the BOI from 169 companies amounted to N77.6 billion or $868.8 million; total disbursements to 61 beneficiaries stood at N32.8 billion or $293.3 million while the NCDF Growth from NCI Fund income was N1.78 billion, equivalent to $33.79 million.

He disclosed that money creation through NCI Fund loans was $25 million or N34 billion while

the NCDF Growth from the fund managed by the Nigerian Export-Import Bank (NEXIM) income stood at $1.234 million.

While 61 beneficiaries emerged from the fund managed by BOI and four beneficiaries recorded in the

NEXIM Bank-managed fund cumulating to 65 beneficiaries, Ofili maintained that 18 beneficiaries were recorded in the NCDMB’s equity investments in private companies.

Noting that NCDMB has catalysed a number of private establishments in the Nigerian oil and gas sector, particularly in manufacturing, he said the board’s investments catalysed local refining, citing the  Waltersmith 5000 barrels per day modular refinery in Imo State.

Ofili explained that the board’s investments were at various stages of implementation and that most of them were yet to commence yielding dividends.

He said NCDMB’s equity investments in private companies span over 16 states of the Nigerian Federation, saying equity investments have instigated local industrial activities in areas hitherto not in Nigeria, such as Base Oil, Industrial Paints and Pipes.

He further said the NCI Fund compliments equity funds availed by NCDMB to bridge gaping financing gaps in critical ventures and that they were expected to spread to several others in the near future.

According to him, the variants of the NCDF included the $300 million NCI fund domiciled at the BOI; the $50 million NCDMB Research and Development Fund with the Central Bank of Nigeria (CBN); $30 million

Working Capital and Capacity Building Fund with NEXIM Bank; and the $20 million Women in Oil and Gas Fund with NEXIM Bank.

Ofili further explained that there was also the $50 million NOGAPS Manufacturing Fund also with the BOI.

He disclosed that NCDMB Direct Interventions through Equity Investments stood at $181 million or N3 billion.

Describing the federal government as the winner in the board’s successes, he explained that

NCDMB, an agency of the federal government deploys highest standards of passion, dedication and integrity in the execution of its responsibilities.

He added that the board operates as a hybrid public sector institution regulating the private sector.

Earlier in his remarks, the General Manager, Corporate Communications and Zonal Coordination, NCDMB, Dr Ginah O Ginah, said NCDMB’s collaborations and stakeholder engagements including with the media constitutes one of the four enablers of the Nigerian Content 10-year strategic roadmap.

 He said the agency has recorded huge achievements in the implementation of the roadmap since it was launched in 2017 when Nigerian Content performance was at 26 percent. 

“Just two weeks ago at the Practical Nigerian Content Workshop held at Uyo, Akwa Ibom State, our Executive Secretary, Engr. Simbi Kesiye Wabote announced that Nigerian Content performance for 2022 has increased to 54 percent, surpassing the 42 percent target that was set for the year. Our statistics also reveal that the average Nigerian Content performance in the last five years is 44 percent, which is also beyond the set targets”, Ginah stated.

Dwelling on the theme of this year’s workshop, he said the board chose the topic deliberately because they wanted the media to give adequate attention to the federal government’s aspirations in the gas sector and the efforts by the NCDMB and other entities to support government’s objectives.

He further said, “As you are aware, President Muhammadu Buhari declared 2021 – 2030 as Nigeria’s Decade of Gas and announced the federal government’s determination to fully exploit the nation’s abundant gas resources to accelerate the development of the economy.  This declaration aligns fully with the rising global demand for cleaner energy sources and the demand for the reduction of global carbon emissions through the reduction in the utilization of fossil fuels. 

“Recall that President Muhammadu Buhari had made a commitment at COP26 held in November 2021 at Glasgow that Nigeria will seek to achieve net zero by 2060, which means cutting greenhouse gas emissions to as close to zero as possible.

“The federal government’s strategy is to use gas as Nigeria’s transition fuel. The Ministry of Petroleum Resources has backed this position with bold policies such as the National Gas Expansion Programme, National Gas Network Code, and Gas Flares Commercialisation Programme.

“As a responsive agency, the NCDMB has also taken deliberate steps to actualize the federal government’s declarations in gas and other aspects of the oil and gas value chain. We have partnered with credible investors to develop critical projects in the sector to take Nigeria towards the goal.

In total, we have partnered with 15 firms to set up projects covering modular refining, gas processing, gas distribution, power generation, manufacturing and others.

“It is worthy of note that 70 percent of our investments are on gas-based activities, especially midstream and downstream gas. Our investments underscore the importance of gas to Nigeria’s economic sustainability, apart from its role in the energy transition.”