The fund will support oil and gas companies that operate in the oil and gas parks developed by the Board in Bayelsa and Cross River State.
The parks are expected to be commissioned and operational in the 4th quarter of 2022 and would incubate the manufacturing of equipment components utilized in the oil and gas industry and create an estimated 2000 jobs in each park.
NCDMB understands the challenge associated with manufacturing, especially the reluctance of banks to extend loans to manufacturers, because of the long repayment period for such facilities.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote disclosed that the NOGAPS Manufacturing fund will soon be launched and will be managed by the Bank of Industry (BoI) to address the identified challenges.
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.
The Board established the NCI Fund in 2018 with the purpose of financing Oil and Gas companies to increase capacity and grow Nigerian Content in the Industry.
Presently, the NCI Fund has five product lines which are being managed by the Bank of Industry.
The Board also has a US$30 million Working Capital Fund for oil and gas service companies and a US$20m Fund for Women in Oil and Gas Intervention Fund.
Both facilities are administered by the Nexim Nigerian Export-Import Bank and the agreements were signed in mid-2021.
He added that NCDMB is required to develop the economy and create indigenous capacity in the supply chain.