Community contractors in the oil and gas industry will only pay five per cent interest rate when they access the Nigerian Content Intervention Fund (NCI Fund), the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said.
He stated this during the interactive session organised by the Board in Abuja for civil societies organisations (CSOs), adding that such contractors execute small scale projects and would not pay the same interest rate like conventional oil and gas service companies.
The concession for community contractors is in line with the Board?s Community Content Guidelines and provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The aim is to promote the participation of genuine community contractors in oil and gas projects and integration of communities in the industry value chain as part of the strategy to grow the local economy and promote peace in the communities.
Wabote also promised that disbursement of the Content Fund to oil and gas companies will start this year. The loan will be disbursed directly to qualifying companies by the Bank of Industry (BoI) and repaid within five years at eight per cent interest rate. The NCI Fund, he explained, will cater for manufacturing, project financing and equipment purchase. A key consideration for granting loan for a project is the impact it would make, he added.