Simbi Wabote, Executive Secretary NCDMB
Simbi Wabote, Executive Secretary NCDMB

NCDMB slashes rate on NCI fund loans, gives moratorium

The Nigerian Content Development and Monitoring Board (NCDMB) says it has reduced the interest rate for beneficiaries of loans under the Nigerian Content Intervention (NCI) Fund.

The Board said it has reduced interest rate payable on the Fund from eight to six percent per annum.

The board says it has also extended the loans moratorium and tenure effective from April 1.

Simbi Wabote, the Executive Secretary explained that the Board decision was part of measures to spur business continuity.

Particularly in the oil and gas sector due to the COVID-19 pandemic, he added.

Wabote explained that these palliatives seek to reinforce the various economic stimulus packages by the Government.

This is to support businesses to overcome the difficulties created by the Coronavirus outbreak.

He reaffirmed the board’s commitment to continue to provide impetus to businesses in the oil and gas industry.

The objective is to surmount emerging operating difficulties in line with the Federal Government’s policy direction.

“Under this palliative regime, all running loans with outstanding tenure within three years will be extended by six months.

“Also, all running loan facilities with a tenure above three years will get extra 12 months tenure”, Wabote said.

Then, there will be moratorium extension on all running loan facilities under manufacturing, asset acquisition and contract finance

However, this is for those with outstanding tenure not exceeding 3 years by six months and by 12 months for applicable running loan facilities, effective from April 1.

“The five loan products under the NCI Fund are manufacturing, asset acquisition, contract finance, loan refinancing and community contractor financing.

“However, there have been no disbursements yet under Community Contractor Financing to date,” Wabote said in a statement.

He disclosed that 91 per cent of the $200 million NCI Fund had been disbursed to 26 beneficiaries and many of the borrowers had started repaying.

According to him, the current success rate of the Intervention Fund is above 95 per cent.

He said: “Since the COVID-19 outbreak and lockdown in Nigeria, NCDMB has continued to roll out measures to ensure resilience and business continuity in the oil and gas industry.

“Just last week, the board offered business advisory to Project 100 companies and other oil and gas service companies in Nigeria on how to navigate through these precarious times and remain resilient.

“The board also directed NLNG to give priority to Project 100 companies with proven capacities in the Train 7 project.

“NCDMB also wrote to NLNG granting final clearance on Nigerian Content requirements and for the Train 7 contract to be signed and project to commence.”

Meanwhile, Wabote added that on the fight against COVID-19, the board had donated ambulances and medical equipment to some states.

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