This post covers what Nigerian Content Intervention (NCI) Fund is meant for, the purpose, how to access the NCI Fund, the eligibility and many more.
What is Nigerian Content Intervention Fund (NCIF)?
The Nigerian Content Intervention (NCI) Fund is a pool of funds made available by the Nigeria Content Development and Monitoring Board (NCDMB) to be managed by the Bank of Industry to meet the funding needs of indigenous manufacturers, service providers and other key players in the Nigerian Oil and gas Industry. It is sourced from the Nigerian Content Development Fund (NCDF) created by section 104 of the Nigerian Oil and Gas Content Development Act (NOGICD) Act.
The Nigerian Content Intervention Fund (NCIF) was motivated by the desire to re-engineer the operations of the NCDF, increase access to funding and grow indigenous participation in the oil and gas industry.
- To increase access to Nigerian Content Development Fund (NCDF).
- To provide single digit interest loan.
- To enhance competitiveness of indigenous companies servicing the oil and gas industry.
The Purpose for Nigerian Content Intervention Fund (NCIF)
The Nigerian Content Intervention (NCI) Fund is a Nigerian Content Development & Monitoring Board (NCDMB) fund managed by Bank of Industry Limited (BOI).
The NCI fund was motivated by the desire to re-engineer the operations of the NCDF, increase access to funding and grow indigenous participation in the oil and gas industry.
The NCI fund is designed to achieve the following strategic objectives:
- To increase indigenous participation in the oil and gas industry, build local capacity and competencies.
- To promote the growth and development of Nigerian Content in activities connected with sectors of the Nigerian oil and gas Industry.
- To deepen the creation of linkages to other sectors of the national economy and boost industry contributions to the growth of Nigeria’s National Gross Domestic Product.
- To address persistent funding challenges that have hindered capacity and growth of local service providers in oil and gas.
- To facilitate the growth of community based companies in the upstream oil and gas sector.
- To spur productivity and job creation in the Oil and Gas Industry.
- To attract investment capital into the sector and boost contribution of the sector to Nigeria’s economic growth.
Benefits of NCI Fund Oil and Gas Industry in Nigeria.
The Nigeria Content Intervention Fund is meant for Oil and Gas Manufacturing Loan, Asset acquisition financing, Loan re-financing, Community contractor finance scheme and Contract Finance.
The facility type are Term loans, Working Capital, Invoice Discounting and Leasing facility. The NCI Funding are for maximum of 5 years tenor.
The benefits are many to local economy, host communities and players in the Nigerian oil and gas industry. Some of the benefits are:
- It will promote the production and utilization of locally manufactured goods and services in the Nigerian oil and gas industry.
- It will address the persistent funding challenges that has hindered capacity and growth of local service providers in oil and gas industry.
- It will spur productivity and job creation in the oil and gas industry.
Amount to Access Under Nigerian Content Intervention (NCI) Fund
Applicants who are eligible to apply for the Nigerian Content Intervention (NCI) Fund have maximum amount they can apply for in one application (a single obligor limit) under each loan type. The single obligor limit for the available types of funding is detailed below:
- i)Manufacturing Loan – US$10million
- ii)Asset acquisition Loan – US$10million
- iii)Contract finance Loan – US$5million
- iv)Community Contractor Finance Scheme – N20million
- v)Loan Re-financing – US$10million
NCI Funding Interest Rate
- Manufacturing Loan – 8%
- Asset acquisition Loan – 8%
- Contract finance Loan – 8%
- Community Contractor Finance Scheme – 5%
- Loan Re-financing – 8%
The 10% equity contribution will only apply to manufacturing and asset acquisition facility types. Applicant will be required to provide a minimum of 10% equity contribution.
What is community contractor?
A community contractor under NCI Fund is a company operating in the upstream/ midstream sector of the oil and gas industry, that has a valid contract with an IOC for a job in any of the oil and gas communities and whose chief promoter is also an indigene of an oil and gas producing community.
What is contract financing?
This is the provision of loan facilities to oil & gas companies which are contributors to the Nigerian Content Development Fund (NCDF) and intend to finance contracts from IOCs (indigenous companies in the case of community contractors).
Acceptable Assets under Asset acquisition Loan
Plants, Facilities, Rigs, Marine Vessels and other ancillary equipment excluding landed assets.
Facilities for Re-financed Loan
The loan types that are available for refinancing include working capital loans, term loans, leasing facilities. However, the facility must be performing, viable and well secured.
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