NCDMB, BoI Launch $50m Fund for NOGAPS manufacturing product lin

The Nigerian Content Development and Monitoring Board (NCDMB) and Bank of Industry (BoI) on Wednesday launched a $50m fund for Nigerian Oil and Gas Parks Scheme (NOGAPS) manufacturing product line.

The fund aims to incentivize companies to manufacture equipment components used in the oil and gas industry and linkage sectors within the Nigerian Oil and Gas Parks.

At the launch, Simbi Kesiye Wabote, executive secretary of NCDMB said that the fund would support oil and gas companies that would operate in the oil and gas parks developed by the board in Bayelsa and Cross River.

Wabote stated that the fund will only be accessed by companies that take up spaces in the park to procure equipment or build their manufacturing shop floor within the park.

He added that the NOGAPs manufacturing fund is different from the initial $300m fund being managed by BOI with five product lines.

The secretary said 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,” he said.

Wabote added that accessing the NOGAPS funds would only be by companies that will be domiciled and will manufacture their products within the parks.

“The Fund will provide loans to Nigerian companies that meet the criteria to operate in any of the designated NOGAPS Industrial Park for the purpose of financing manufacturing activities, purchase of fixed assets, working capitals and logistics,” he said.

“Beneficiaries will get a maximum single obligor of $3m and minimum of single obligor of $250,000.00with one year moratorium repayable within five years at five percent interest per annum.”

Also speaking at the event, Olukayode Pitan, the managing director, Bank of Industry, eulogised the board for being a partner in progress.

He noted that the fund will further help promote in-country manufacturing as well as creation of employment.

Pitan said the interest rate will help companies to easily access the product and payback.

“The interest rates are very good just like the initial fund which is less than ten percent and the same thing will apply to this one. All we are looking for are Nigerians who want to manufacture in Nigeria,” he said.