The Nigerian Content Development and Monitoring Board (NCDMB) and Bank of Industry (BOI) have launched a $US50 million dollars (N37.7 billion at N745/$) fund for NOGAPS Manufacturing Product Line in Nigeria.
The fund is to incentivize companies that would operate in the Nigerian Oil and Gas Parks and engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.
Speaking at the signing of an agreement for the fund, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote stated that the fund would support oil and gas companies that would operate in the oil and gas parks developed by the Board in Bayelsa and Cross River State.
The board’s corporate communications department in a statement quoted the executive Secretary as saying that the fund was launched in Lagos on Wednesday, adding that the fund will only be accessed by companies that take up spaces in the park to procure equipment or build their manufacturing shopfloor within the park.
Wabote pointed out that the NOGAPs Manufacturing Fund is different from the initial $300m fund being managed by BOI with five product lines which aim at supporting Nigerian businesses that contribute one per cent to the Nigerian Content Development Fund.
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The new fund would be a stand-alone product line with distinct fund allocation and special eligibility criteria and collateral structure.
In his remarks, the Managing Director, Bank of Industry, Mr Olukayode Pitan
said: “The interest rates are very good just like the initial fund which is less than ten per cent and the same thing will apply to this one. All we are looking for are Nigerians who want to manufacture in Nigeria.”
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