The Nigerian Content Development and Monitoring Board (NCDMB), and Nigerian Export Import Bank (NEXIM) have disbursed $42 million (about N62bn) to Small and Medium Enterprises (SMEs) to boost their participation in the sector.
Head of Specialised Business at NEXIM, Muhammed Awami, disclosed this yesterday at the panel session during NCDMB stakeholders sensitisation and Engagement Forum in Port Harcourt, Rivers State, with the theme “Deepening Local Content through Certification, Compliance and Financing Support”.
He stated that though the working capital of Capacity Fund is $30 million, they have exceeded the amount in other to attract more Nigerian players in oil and gas sector.
Awami urged the duly registered Nigerian oil service providers with viable contracts with International Oil Companies (IOCs) and National Oil Companies (NOCs) to take advantage of the NCDMB Working Capital and Capacity Fund, managed by NEXIM bank.
He said the fund offers flexible financing and tailoring solutions to meet their business needs, and catalyse business growth, help to access markets, expand global footprint and unlock new opportunities.
“Once you meet pre-disbursement conditions, we disbursed the funds to you, and after disbursement, we also monitor sometimes jointly with NCDMB, sometimes, we just do spot check assessment of utilization of the funds, to make sure the funds are being utilized for the purpose it was disbursed.
“When it’s time to repay, we expect that repayments are made by the beneficiaries so that we can also lend again to other people, the fund Working Capital and Capacity Fund is $30 million but so far, we have disbursed about $42 million.
“So, I’m sure a lot of challenges could be around collateral in terms of how the funds operate, so what we have done is to water down the requirements without compromising the bank or the board, so we use things like the assignments of receivables, we use things like insurance and other forms of collateral which make it easy for the beneficiaries to access the funds, though we are transactional about it, so we look at the transaction itself and build the finances structures around the transaction in such a way that the loan becomes self-liquidity without the need for physical collateral,” Awami stated.
In a remark, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, represented by Dr. Osa Uchendu, said the forum offers the board an opportunity to deliberate with the stakeholders in the oil and gas industry.
He said the conversation will boost more participation of Nigerian players in the oil and gas industry and encourage their business growth.
Also speaking, the Group Head Oil and Gas, in the Bank of Industry, Gabriel Yemidale, said the Nigerian Content Intervention Fund (NCI Fund) which started in 2017, with N200 million had grown to N300 million in 2023.
