Nearly seven years after its establishment, the Nigerian Content Development and Monitoring Board (NCDMB) is yet to commence the disbursement of about $100 million Nigerian Content Intervention Fund (NCIF) set aside to develop indigenous enterprises.
The NCIF has faced consistent criticism from stakeholders in the oil and gas industry, who are lamenting that the NOGICD Act 2010, which established the Nigerian Content Development Fund (NCDF) in 2012, now NCI Fund to address financial and liquidity challenges of Nigerian companies operating in the industry was floated, it has been unable to impact the industry thus defeating the aim and purpose for which it was set up.
But the Executive Secretary of NCDMB, Mr. Simbi Wabote, yesterday, during a visit of the management of NCDMB to ExxonMobil, explained that disbursement to deserving companies was yet to start because the board was working to perfect the governance process.
He added that the funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.
Recall that in July 2016, NCDMB and Bank of Industry (BoI) signed a Memorandum of Understanding (MoU) for the $100 million NCI Fund. Under the MoU agreement signed by the two organisations, BoI shall manage the funds on behalf of NCDMB and provide periodic reports on the progress of the fund.
But shortly after the MoU was signed, it was set aside. Explaining the rationale for suspension, Wabote had, during his 100 days in office media parley in Yenagoa, Bayelsa State, explained that the board was fine-tuning the modalities contained in the MoU.
On his visit to ExxonMobil, Wabote said it was in line with the board’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian content in the oil and gas industry.
He reiterated the board’s determination to shorten the industry’s contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs).
According to him, the first SLA was signed between the board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to compliance with Nigerian Content Act and timely approvals of documents respectively, adding that the model will soon be replicated with other operating companies.
He advised ExxonMobil to begin early engagement with the board on the development of its Owowo Field to enhance utilisation of in-country capacities.
The Executive Secretary, however, cautioned operating companies against engaging in single sourcing and selective tendering, stressing that reasons for such must be justifiable and discussed with the board ahead of execution. He equally warned companies against irregular spot hiring and utilisation of vessels under the guise of emergency.