ANNOUNCED AS TEMPORARYNo
The Nigerian Content Development and Monitoring Board signed a Memorandum of Understanding (MoU) with the Bank of Industry. The MoU was signed with the purpose of establishing the Nigerian Content Intervention Fund with an initial budget of USD 100 million.
The Bank of Industry is a state-owned Nigerian Bank designated to distributing the financial resources embedded in the Nigerian Content Intervention Fund. The Nigerian Content Intervention Fund represents a financing scheme which provides qualified national oil and gas industry players with loans of a maximal duration of 10 years and under favourable interest rates of 8%. The maximum amount to be awarded to a beneficiary under this loan scheme is USD 10'000'000. In addition, the loans distributed under the Nigerian Content Intervention Fund can be utilized for the purpose of the acquisition of fixed assets, financing working capital, leasing of industrial and business equipment and constructions and acquisition of marine vessels.
Lastly, it is important denoting that according to official sources the establishment of this Fund, represents a shift from the old financing model of the Nigerian Content Development and Monitoring Board i.e. Nigerian Content Development Fund -- i.e. a fund which provided partial guarantees and 50 % interest rebate to service companies who had previously acquired loans from banks for asset acquisition and projects execution purposes.
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