The Board and the Bank of Industry (BOI) recently signed a Memorandum of Understanding on the implementation of the 200 million dollars Nigerian Content Intervention Fund(NCI Fund.)
The NCI is a portion of the Nigerian Content Development Fund(NCDF), set aside by the NCDMB for BOI to manage and lend directly to Nigerian oil services providers (NOSPs) The NCDF is drawn from one per cent of all contracts awarded in the upstream sector of the oil and gas industry.
Section 104 of the Nigerian Oil and Gas Content Development (NOGICD) Act established the NCDF, which is drawn from 1% of all contracts awarded in the upstream sector of the Nigerian Oil and gas industry.
OBJECTIVES OF THE NCI FUND
To finance existing and original equipments manufacturers in the Nigerian Oil and Gas industry
To procure fixed assets (machinery and ancillary
To serve as working capital (initial stocks or increase in stocks of raw materials, spare parts components): and
Leasing of industrial and business equipment
Manufacturing $10,000,000.00 (Ten million US Dollars)or equivalent in naira
Assets Acquisition $10,000,000.00 ( Ten million US Dollars)or equivalent in naira
NOSPs Contract financing $5,000,000.00(Five millin US Dollars or equivalent in naira at official exchange
Community Contractors N20,000,00.00(Twenty million Naira)
Contract/loan refinancing any of the above threshold that may be applicable to the transaction.
Primary condition for accessing the fund
A key eligibility requirement us that applicants must have been contributing to the Nigerian Development Fund
The tenor for any facility shall not exceed 5 years or such lower period as may be determined on case by the basis by BOI in consultation with NCDMB
Disbursement and Supervision of Investments
Projects financed under the fund shall be supervised using the same procedures adopted by BOI for its own projects, which include reporting requirements set up for the client and staff
Asset acquisition and NOSPs financing: Interest shall be payable on the disbursed portion of the loan granted at the rate of 8% all in(eight percent) per annum. This rate shall accrue to the fund and shall be subject to joint review by NCDMB and BOI from time to time.
Community Contractors: Interest shall be payable on the disbursed portion of the loan granted at 5% all in (five percent)per annum. This rate shall accrue to the fund and shall be subject to joint review by NCDMB and BOI from time to time.
Contract/Loan Refinancing: Interest will be payable on the disbursed portion of the loan granted at 50%(fifty percent) of the prevailing interest on the refinanced loan all in per annum subject to maximum of 8% interest all in. This rate shall accrue to the fund and shall be subject to joint review by NCDMB and BOI from time to time.
Governance Framework of the
Loan Application & Screening ~ 5 days
Applicants submits loan application to BOI
BOI conducts initial screening on the documents to ensure completeness
Online database of NOSPs is accessible by BOI
Credit Review &Appraisal( BOI)~ 2O days
BOI conducts a detailed review on the loan applications s including KYC on the NOSPs/ projects promoters
BOI appraises the project to determine viability and other credit issues
<Final Review & Appraisal ~10 days >
NCDMB conducts final review on the appraised projects based on established internal credit criteria
NCDMB gives approval for credits considered viable and meets other set internal conditions
Fund Disbursement &Monitoring~10 days
BOI receives approval from NCDMB for disbursement
BOI disburses funds to the NOSPs for project execution /working capital
BOI carries out ongoing project monitoring
In addition to BOI checklist, applicants will be required to the following information/documents
s/n Additional Requirement
1 .Relevant permits/Approval
- Evidence of contract Remittance (1% 0)-prescribed
- Offtake and other relevant agreements
- Evidence of counterparts funding(i.e equity contribution)
- Recommendation from PETAN (Petroleum Technology Association of Nigeria) or any other association recognized by
- Environmental Impact Assessment (Manufacturing plants)
The board is supporting the honorable minister of the state for petroleum Resources, Dr Ibe Kachikwu to put a stop to importation of petroleum products. NCDMB’s strategic initiatives to support this aspiration, is to achieve 100% local fabrication of modular refineries. we have commenced discussions with OEM and local fabricators to make this a reality.
WE have set aside areas in our Nigerian oil and gas parks scheme for practical training on operation, maintainance, and running modular refineries as a sustainable business model and for fabrication of the units.
The 3- step strategic approach by the NCDMB represented in the table below
Procure and install units of MR and train personnel within NOGaps 2. 2018 -2020 Partial fab and local Assembly of MR within NOGaPS 3.2021 Complete fabrications/Manufacture of MR in country
Step one: Entails the installation of a 100 barrels/day capacity modular refinery with the parks.
The unit will be put into operation in partnership with OEM and used to train youth on the fundamental operations of modular refinery as a business covering technical and non technical aspects.
Step two : Identify and select local fabricators/ manufacturers to set up fabrication yards within the park such that various aspects of the modular refinery can be fabricated and assembled within the park.
Step three: The ultimate goal is to fully fabricate modular refineries in country and have them contribute to meeting demand for petroleum products in the local and regional market.
YOUTH EMPOWERMENT PROGRAMS
In a bid to foster a crises free environment between youths in oil producing communities in particular, and Nigeria as a whole, the board has developed and seeks to implement six youth Empowerment programs that will be targeted at different categories
.Unemployed and uneducated youths
.Internally Displaced women
.Youths in oil producing communities
.Young farmers living along pipeline corridors
These youth development programs include
.Joint programme for the Empowerment of young women and men
.Green initiative for Graduate students(GIGS)
.e- novation Youth Empowerment programme (eYEP)
.Emergency Youth Employment and skills Development projects
.Joint Net Organization for youth Empowerment and Development (NOYED)
.Fair Trade organization of Kenya (FTOK)
Under the youth empowerment program, the board also launched the triple E initiative, This program was launched in collaboration with the Anabel leadership Academy. The aim is to provide training and empowerment opportunities for youths, indigenous vendors and SMEs
.Implement expanded youth empowerment programs.
.Through the Triple E project 47 vendor and 38 SMEs were trained on packaging tender documents and partnership proposition with OEMS respectively.
EXPATRIATE QUOTA MANAGEMENT (EQM)
Section 33 of the NOGICD Act reposed the Board with responsibility of managing Expatriate Quota utilization by oil and gas industry. The essence is to enable government identify skill shortages within the oil and gas sector and track the numbers of expatriates in the industry, their length of stay, compliance with provided succession plans expected date of exit.
The board is also expected to evaluate the skills of the expatriates and confirm that such skills are not available locally in the industry before granting the EQ application. In making the applications, the companies are expected to attach the list of all existing expatriates with their understudies, list of all Nigerian employees, job description and qualifications and employment commitment for Nigerians with timelines, training plan/schedule of Nigerian staff, Nigerianized positions with dates and advertisements (for new quota positions)
To ensure effectiveness, the Board deployed the biometrics data capture system as a repository for expatriate quota management in the oil and gas industry.
The system requires that each expatriate will get a unique card, which he or she will produce whenever the monitoring team from the board come around for periodic verification.
So far, the biometrics of 3,543 foreign workers has been captured
EXPARTRAIT QUOTA FOR SERVICE COMPANIES AND OPERATORS IN THE OIL AND GAS INDUSTRY
From 2011-December 2016
YEAR TOTAL NO APPLIED POSITION GRANTED POSITION EXPARTRIAT STAFF(%) REJECTED
2011 922 538 384
2012 1,689 1,114 575
2013 2,059 975 1,084
2014 1,444 779 665
2015 2,544 1,575 969
2016 68 32 36
EXPAARTRAIT STAFF (%)