By Omotayo Edubi
The Nigerian Content Development and Monitoring Board (NCDMB) is planning to initiate a $50 million fund for the Nigerian Oil and Gas Parks Scheme (NOGAPS) product manufacturing line.
The Executive Secretary of NCDMB, Simbi Kesiye Wabote, made this disclosure during the weekend in a statement while commissioning the ultra-modern valves assembling facility established by Catobi Nigeria Enterprises Limited in Port Harcourt, Rivers State.
The statement further noted that the finance would sustain oil and gas companies that would operate in the oil and gas parks developed by the Board in Bayelsa and Cross River State.
The parks are expected to be commissioned and operational in the 4th quarter of 2022 and would incubate the manufacturing of equipment components utilized in the oil and gas industry and create an estimated 2000 jobs in each park.
“NCDMB understands the challenge associated with manufacturing, especially the reluctance of banks to extend loans to manufacturers, because of the long repayment period for such facilities. He disclosed that the NOGAPS Manufacturing fund will soon be launched and will be managed by the Bank of Industry (BoI) to address the identified challenges.
“The new fund would be a stand-alone product line with distinct fund allocation and special eligibility criteria and collateral structure. The decision of the Board to establish the product was informed by the peculiarities of the manufacturing sector, which include infrastructure challenges, long gestation, long lead time before returns, low margins on products, and high risk attached to the endeavour, in addition to the reluctance of commercial banks to lend to the sector and application of stiff collateral and eligibility criteria where loans are extended”, the statement explained.
While applauding Catobi Nigeria Enterprises Limited for contributing to the attainment of the Board’s 10-year strategic roadmap, Wabote noted the upgrade of the facility will strengthen the valve assembly operations in-country, maintenance and instrumentation services. He disclosed that the valve assembly plant now possesses the capacity to handle shut-off and control valve testing, test pressure safety bunker operations, valve assembling, and disassembling.
“Catobi Nigeria Enterprise Ltd is a superb example of what a Nigerian oil and gas service company can grow into over a period of time in demonstration of the resilience of the Nigerian enterprise,” Wabote added.
He called on the other service companies to emulate the company to invest in manufacturing and promote the development of services that will benefit the Nigerian economy.
The Chairman, Catobi Nigeria Enterprise Ltd, Dr Okey Ukaegbu, was thankful for the support he had received from the industry through the implementation of the Nigerian Oil and Gas Industry Content Development Act 2010.
He mentioned with the new valve assembling plant, the company will be able to serve other sectors of the economy.
“The plant is a great opportunity to showcase a Nigeria company’s capacity and we are poised to continue to meet the industry needs and demands with timely delivery and at the right cost.” He said.
The Chairman, Petroleum Technology Association of Nigerian (PETAN), Mr Nicolas Odinuwe, In his remarks asked industry operators to give the chances to members of the association as they possessed capacities and capabilities to deliver.
“We have the best equipment, and if there is no opportunity you cannot build competence.”
The Board established the NCI Fund in 2018 with the purpose of financing Oil and Gas companies to increase capacity and grow Nigerian Content in the Industry Presently, the NCI Fund has five product lines that are being managed by the Bank of Industry. They include – Manufacturing Finance -$10m; Asset Acquisition Finance -$10m; Contract Finance -$5m; Loan Refinance -$10m and Community Contractor Finance – N20 million.
