From Uche Usim, Abuja

The Ministry of Petroleum Resources, the Nigerian Content Development and Monitoring Board (NCDMB) and the Bank Of Industry (BOI) Thursday signed a Memorandum of Understanding (MoU) for a $200m Nigerian Content Intervention Fund (NCIF) for projects.

The deal is an offshoot of the Petroleum Ministry’s #7BIGWINS 2 initiative aimed at deepening local participation in the sector.

Speaking at the event in Abuja, the Minister of State, Petroleum Resources, Dr. Ibe Kachikwu said the partnership promises majestic yields that will help galvanize Nigerian experts who want to invest in the oil and gas industry but have been challenged by paucity of funds.

According to him, though the money was a far cry from the $16 billion needed to modernize operations in the sector, he appreciated the NCDMB and the BOI for pooling the fund which beneficiaries will access and pay back with eight per cent interest.

He thus advised potential borrowers to ensure judicious use of the money.

“The Buhari administration remains committed to widening local participation in the oil and gas sector. So, on our part, we should contribute our quota in developing the industry. Let us also ensure the fund is expanded because what is needed is actually $16 billion. We need cutting edge technology-driven projects. Something unique to move the goal post a little bit.

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“So, even if it means embracing inter-country collaboration, credit guarantees, investment drives, Foreign Direct Investments (FDIs), etc, let us do it to widen the fund base.

“However, we must be careful to ensure geographical spread. It should not be limited to only the oil producing areas though they are critical stakeholders”, the Minister said.

Kachikwu also advised that the fund be spread across the upstream and downstream lines, with focus on the communities.

He urged players in the sector to collectively set and pursue targets meant to move the nation forward.

“We should set a target that in five years time, 50 per cent of all activities in the industry will be controlled by Nigerians using tools fabricated here. We can also say that in the next 10 years, every FPSO must be done here. We can set these goals and work towards them”, he said.

Also speaking at the event, the Executive Secretary, NCDMB, Simbi Wabote said the $200 million NCIF would go a long way in building capacity for Nigerians operating in the oil and gas sector.

“NCDMB and BOI making efforts to address funding challenges that stifled capacity building and growth. It’s good players gather to develop the industry.

“NCIF is critical to the development of the economy. Before the coming onboard of NCDMB in 2010, all fabrications were done abroad leading to scathing capital flight. Before 2010, $350 billion was lost annually in this regard. Again, there was two million job loss with five per cent of Nigerian content because the focus was on oil revenue. So government moved to stem the tide and today the story is different.