Tag Archives: #NCDMB

Nigerian Content Intervention Funds Increased To $350 Million By NCDMB

The Minister of State For Petroleum Resources And The Chairman Nigerian Content Development Monitoring Board (NCDMB)
Governing Council Declared $350 Million Increase.

Mr Julius Bokoru, the Special Assistant On Media And Public Affairs to Timipre Sylva, Honourable Minister Of State For Petroleum Resources. In a statement issued yesterday said:

“The Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) has approved the expansion of the Nigerian Content Intervention Fund from US$200 million to US$350 million.

The enlargement of the Fund by US$150 million was part of the decisions taken at the recent NCDMB Governing Council meeting, which held virtually on June 16, 2020. The meeting was chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva, who is the Chairman of the Council.

The Council approved that US$100 million from the additional funds would be deployed to boost the five existing loan products of the NCI Fund, which include manufacturing, asset acquisition, contract finance, loan refinancing and community contractor financing.”

The spokesman further said:

“Similarly, the Council also approved that US$20 million and US$30 million respectively should be deployed to two newly developed loan product types – the Intervention Fund for Women in Oil & Gas and PETAN Products, which include Working Capital loans and Capacity Building loans for PETAN member companies.

The NCI Fund was instituted in 2017 as a US$200 million Fund managed by the Bank of Industry (BoI) engaged to facilitate on-lending to qualified stakeholders in the Nigerian Oil and Gas industry on five loan product types. The NCI Fund is a portion of the Nigerian Content Development Fund (NCDF), aggregated from the one percent deduction from the value of contracts executed in the upstream sector of the oil and gas industry. About 94 percent of the NCI Funds has been disbursed to 27 beneficiaries as at May 2020. NCDMB has received new applications from 100 companies for nearly triple the size of the original fund.”

“Guidelines for the NCI Fund provide that beneficiaries of the Manufacturing Loan and Asset acquisition Loan can access a maximum of US$10million respectively. Also, beneficiaries of Contract finance Loan can access US$5million while beneficiaries of the Loan Re-financing package can access US$10million, with beneficiaries of the Community Contractor Finance Scheme limited to N20million.
The maximum tenure for all loan types is 5 years and applicants cannot have two different loans running simultaneously.

At the onset of the Fund, the applicable interest rate for the various loan types was pegged at eight (8) percent, except the Community Contractor Finance Scheme, which was five (5) percent.
However in April 2020 as part of NCDMB’s response to mitigate economic impact of the coronavirus pandemic, Council approved reduction of the interest rate from eight (8) to six (6) percent per annum for all four of the loan products. The Board also extended the moratorium for all loan products.” He concluded.

NCDMB Replied Allegations on Timipre Sylva Demanding $20 MILLION FROM BOSS

The NCDMB described the report of Sylva demanding $20 Million from local content Boss as spurious.

Barr. Naboth Onyesoh, the Manager Corporate Communications of the Nigerian Content Development & Monitoring Board, in response to Sylva demands $20 Million From ‘Local Content Board’ Boss to fund Bayelsa Re-Run Elections. Said:

“The attention of the Management of the Nigerian Content Development & Monitoring Board (NCDMB) has been drawn to a spurious and malicious story published by an online medium- POINTBLANK NEWS, titled: ”Sylva demands $20 Million From ‘Local Content Board’ Boss to fund Bayelsa Re-Run Elections.”

Ordinarily the Board would have ignored this fake news, especially one planted in a notorious online publication.”

Bar. Onyesoh continued that:

“However, we are constrained to react because sponsors of the wicked tissues of lies are intent on tarnishing the good image of the Board and strong reputation of the Executive Secretary, Engr. Simbi Wabote and that of the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva and portray the Board as partisan.

We verily believe that this outright fabrication was sponsored by those angling to contest for the senatorial elections in Bayelsa West Senatorial District, who are in the habit of concocting wild allegations to distract the NCDMB and lure us into local politics.”

“For the avoidance of doubt and to set the records straight, NCDMB wishes to state categorically as follows:

1) There is no iota of truth in that story. It is completely mendacious and a figment of the imagination of those behind it

2) From inception in 2010 till date, NCDMB has never been pressurized or required to sponsor anything that has partisan colouration

3) The current Minister of State for Petroleum Resources, Chief Timipre Sylva has never demanded nor suggested to the Board and its leadership to fund any political activity in Bayelsa or any part of the country, however described

4) As a federal agency, NCDMB is focussed on its statutory mandate as enshrined in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act

5) The Nigerian Content Development Fund (NCDF) was instituted for funding capacity development in oil and gas activities and cannot be applied for any other purpose except that expressly stated in the NOGICD Act

6) It is preposterous to allege that the Minister is demanding $20m from NCDMB to fund elections, whereas all funds belonging to the Federal Government are in the custody of the Central Bank of Nigeria and NCDMB’s funds cannot be withdrawn except for legitimate purposes consistent with its mandate. Thus it is absurd and unreasonable to contemplate or imagine that the Board can withdraw any money from the NCDF except for any of the purposes it was instituted under the Act

7) The status of NCDMB finances are in the public domain and can be verified by anyone or group that is so interested; and that is why the Executive Secretary has consistently announced the balance sheet and utilization of NCDF at every oil and gas fora

8) Contrary to the wicked suggestion in the story, NCDMB has never awarded any contract to the Minister or any company connected to him and neither has the Board awarded contracts for shore protection in Brass LGA of Bayelsa State because it is clearly outside our statutory mandate

9) It is pertinent to state that NEITI declared NCDMB as the most transparent federal oil and gas agency and the Board achieved this lofty feat because our operations are always complaint with government’s financial regulations

10) NCDMB has initiated several oil and gas projects in Bayelsa State and engendered multiple investments that are geared to uplift the people and the economy. Therefore we demand that political gladiators in the state should spare us distractions and negative reportage that are capable of creating disincentive for investments

11) NCDMB’s financial processes and operations are always open and transparent. The Board and its leadership have never been manipulated and cannot be influenced to favour individuals or political parties, no matter how highly placed because what the Board does must be in line with its mandate in the NOGICD Act

12) One would have expected POINTBLANK NEWS, if it were a credible media outfit, to conduct a thorough investigation with a view to validating the veracity of the story before going to press. But in this case, it was a mere conjecture by the authors to please their sponsors

13) From the foregoing, it is obvious that this story was calculated to malign the Board, its leadership and the Honourable Minister of State for Petroleum Resources, to score cheap political points and create disaffection. Going forward, the Board will not hesitate to take appropriate legal action against any individual or media organizations that publish materials that are spurious, malicious and libelous.” Onyesoh concluded.