NCDMB to Launch $200m Local Content Fund

By Modupe Gbadeyanka

Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, has disclosed that the board has obtained all necessary approval to relaunch the Nigerian Content Intervention Fund (NCI Fund).

Speaking recently at the technical meeting held between top officials of Dangote Refinery and NCDMB at the refinery project site in Lekki, Lagos, Mr Wabote said the slight cost differentials between Nigerian and foreign vendors should not be an excuse to export jobs, stressing that the opportunity cost of creating employment for Nigerians, developing local capacity, retaining spend in the economy and engendering a safe operating environment for companies justifies any marginal cost of execution charged by Nigerian vendors.

He explained that Nigerian companies were affected by high costs of funds and powering their operations with diesel generators, assuring however that investments and initiatives by the Federal Government was already improving the power situation in the country.

According to him, the pool available for lending to qualified oil and gas players for the NCI Fund had been increased from $100m to $200m to ensure that more deserving companies benefit at the same time.

He reiterated that NCI Fund will be disbursed directly by the Bank of Industry (BOI) at eight percent interest rate and repaid within five years.

Speaking further, Wabote sought the collaboration of Dangote Refinery to build infrastructural and human capacity that would support the operations phase of the project, stating that “operations last for many years and there are huge opportunities to tap in from the Local Content perspective.”

He charged the company to develop and submit to it a list of support businesses that will be needed in the operations phase of the refinery so the Board can build the capacity of Nigerian in those areas ahead of the project commencement. He also expressed the Board’s preparedness to partner Dangote Refinery in setting up a world class welding school on the back of the refinery project.