Women who are itching to take advantage of existing investment opportunities in the oil and gas sector have advocated a special grant to support not only those already established in the system but targeting start up firms.
Speaking with LEADERSHIP during a sensitisation session organised for local contractors in Lagos by the Nigeria Content Development and Monitoring Board (NCDMB), the managing director and chief executive officer of DEEP offshore services, Nneka Zainabu Obi, urged for the creation of a grant for women who are really serious about growing a business in the oil and gas industry.
Obi, said whoever took the grant would be monitored closely to be sure that she is actually doing what she said she would do when she applied for the grant. “Then f those that have fulfilled that part with the grant given, will now be qualified for a loan not more than 5 per cent interest to scale up their business to any level they want.
“Because I know as a start up especially women, we have a lot to worry about when trying to push ourselves to start a business, and part of the fear at the beginning is “will be able to pay back and including the interest ?” That brings fear and we know fear can striffle anyone and the person will simply not try anymore.”
He demand comes as the Board has called on indigenous firms to deepen their activities in the oil and gas industry with $400 million Nigerian Content Intervention Fund (NCI) Fund.
The Board said about 130 indigenous companies had accessed funding from the Fund which is a portion of the NCDF managed in partnership with the Bank of Industry and the Nigerian Export-Import Bank, to provide low cost finance to qualified oil service companies, to enhance their competiveness and deepen Nigerian content performance in the oil and gas industry and grow the national economy.
To further expand access to the Fund the NCDMB has introduced the Nigerian Content Fund Clearance Certificate(NCFCC) as a mandatory compliance document for contractors and operators in the oil and gas sector.
The certificate was launched during a Stakeholders’ Sensitization workshop held in, Lagos, where the Board also showcased an upgraded Nigerian Content Development Fund payment portal and a revised Community Contractors Finance Scheme.
The NCFCC is now a prerequisite for contract bidding, project approvals, and Board certifications in the oil and gas industry. It forms a core part of NCDMB’s regulatory drive to ensure full compliance with statutory financial contributions as stipulated by section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The NOGICD Act mandates all entities in the upstream sector of the Nigerian oil and gas industry to pay one percent of the value of their contracts into the Nigerian Content Development Fund (NCDF), managed by the NCDMB for developing Nigerian content in the oil and gas and linkage sectors.
Speaking at the event, the executive secretary of NCDMB, Engr. Felix Omatsola Ogbe said the certificate and digital tools were designed to enhance compliance, transparency, and access to finance for indigenous contractors.
“This programme is more than a workshop; it reaffirms our commitment to deepen Nigerian content, enhance oversight, and open up financing opportunities for indigenous and community-based contractors,” Ogbe stated.
Speaking on the criteria for obtaining the fund as highlighted by participating financial institutions, Obi, said that as a woman she not benefited yet. “
But what I see here is that even though like NEXIM, some institutions have funds kept aside for women, it does not mean it comes to you because you are a woman, you have to meet all the required criteria. I know just 1 woman that has benefited from the NEXIM program for women but I don’t think a lot of women are really benefiting because I believe it is still lack of knowledge and then the women need to step up and take advantage of the opportunity. Again women do not really share with other women how they have succeeded, there are very few who actually give all the details.”
Speaking on the performance of the NCI Fund, group head, Oil and Gas at the Bank of Industry, Mr. Gabriel Yemilade, disclosed that the bank disbursed $348.296m and N48.289 billionn to 79 local firms active in marine logistics, upstream exploration, modular refining, gas processing and fabrication.
In his words, “the fund has evolved from an initial $200m in 2017 to $300m by 2020, due to high demand. We are enabling local content through direct financial support,”
Yemilade reaffirmed BOI’s administration of the Community Contractors Scheme, which offers loans of up to N100 million at eight per cent interest yearly, secured by valid contracts or Standing Payment Orders.
