Even as uncertainties still trails the Cabotage Vessels Finance Fund (CVFF) of the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Content Development and Monitoring Board (NCDMB) says Bank of Industry (BoI), its fund manager, has so far disbursed 293.3 million dollars and N32.8 billion to 61 firms under its Nigerian Content Intervention Fund (NCIF).
But, the General Manager, NCIF and Treasury, Mr Obinna Ofili, said this at the Nigerian Content Capacity Building workshop for media stakeholders in Lagos on Monday.
Recall that the Minister of Transportation, Engr Muazu Sambo only recently announced the commencement of disbursement of the Cabotage Vessel Financing Fund (CVFF),that is about 18 years ship owners began contributing into the fund.
Even at that, the announcement has pitched ship owners’ associations in the industry against each other.
Mr Obinna Ofili, said the total balance with BoI was 31.5 million dollars and N3.11 billion as at November, while total money creation by loan disbursements so far amounted to about 25 million dollars and N34 billion respectively.
Ofili added that reports from Bol indicated that the NCIF managed by the bank till date had recorded zero per cent non- performing loan (NPL).
The NCIF boss said the board was proud to have experienced and skilled counterpart, saying Bol was the leading Development Finance Institution (DFI) in Nigeria with NPL below five per cent, a feat which he described as unprecedented in Nigeria.
“NCDMB collaborated with development banks with focus on development and not just profit. NEXIM Bank is focused on financing companies to break into the service sector in Africa and become big corporates,” he said.
He explained that the Nigerian Content Development Fund (NCDF) was a special fund created to finance Nigerian content development in the oil and gas industry.
‘’Covered entities are required to deduct and remit obligations accruing there into the Nigeria Content Development Fund, while covered entities have responsibility to ensure their affiliates and contractors comply with the provisions of the Act,” he said.
He maintained that NCDMB was empowered to manage and administer the fund, which was deployed to increase capacity and capability of Nigerians and Nigerian companies operating in the oil and gas industry.
Making further clarification on the NCDF, Ofili said the NCDF could not be interpreted as the same as, or placed in the same basket with the funds/revenues of the Board.
He said revenues of the board included investment income, (appropriation proceeds when the board was still government-funded), grants, donations and loans.
According to him, seed funds for the Nigerian Content Intervention Fund is sourced from the NCDF, which is derived from section 104 of the Nigerian Oil and Gas Industry Content Development Act 2010.
He described some of the interventions by NCDMB as catalysts for manufacturing and production, saying that the investments catalysed local refining from the first modular refinery in Nigeria currently refining 10,000 barrels per day.
‘‘Equity investments have instigated local industrial activities in areas hitherto not in Nigeria, such as base oil, industrial paints and pipe. “Investments are at various stages of implementation but most are yet to commence yielding dividends.
“NCI fund compliments equity funds availed by NCDMB to bridge gaping financing gaps in critical ventures.
“The investments span over 16 states of the Nigerian Federation and are expected to spread to several others in the near future,” he added.
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