Paste your Bing Webmaster Tools verification code here

30 MILLION USD NCDMB WORKING CAPITAL AND CAPACITY (WCCF) FUND FROM NEXIM FOR INDIGENOUS COMPANIES IN THE OIL AND GAS SECTOR IN NIGERIA

Are an Oil & Gas Service Company operating in Nigeria?  Do you have any any transactions connected with oil services companies and require finance to execute them? Do you want to invest in your company in form of debt to enhance your operations and viability as an Oil & Gas Service Company? Have you been given a contract to  supply of low-end assets and or other equipment relating to the execution of an oil service contract from IOC/NOCs?  You have no need to worry as NCDMB has a 30million USD Working Capital and Capacity Fund for people like you that operate in the oil and gas sector in Nigeria.

Companies operating in the oil and gas sector are required to register with the Nigeria Content Development and Monitoring Board (NCDMB) to get benefits from operating in the sector. The Nigerian Content Act has outline benefits that will accrue to indigenous companies operating in the sector.

 

Recently, more benefits are now being rolled from the Federal Government Initiatives to further develop indigenous oil and gas companies and to boost their operations and increase their economic welfare.

 

One of these laudable initiatives by the Federal Government is the 30MILLION USD (Thirty Million Dollars) NCDMB Working Capital and Capacity Fund (WCCF) which is aimed at providing working capital and other operating expenses for oil servicing companies. This has been reported hereunder.

“The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, explained that the roll-out date for the fund is July 1, 2021, with NEXIM providing matching funds of the same amount in Naira.

He said, “The scheme would cover loans for working capital support and capacity building, invoice discounting and capacity building, including the acquisition of low-end equipment to service short-term contracts/service obligations.” reported by nairametrics.com

“The Executive Secretary also pointed out that the maximum amount that can be borrowed by a single obligor is US$1,000,000 or its Naira equivalent, while the tenor of the loan would be up to 12 months for Working Capital loans and up to 3 years for Capacity Building loans with a moratorium of up to 12 months” reported by nairametrics.com

The opportunity now exists for the financing of businesses for requirements such as working capital support and capacity building, invoice discounting, and capacity building, including the acquisition of low-end equipment to service short-term contracts/service obligations.

This fund is channeled through NEXIM (Nigeria Export Import Bank).  The facility has an interest of 5% for USD loans and 8% for Naira loans and has a tenor of three (3) years. The rate shall be fixed throughout the tenor of the loan.

According to the release by NCDMB,  “Maximum processing time shall be 21 working days from the date the applicant has provided all required documentation”.

‘’All applications for the fund shall be through the web and NEXIM shall develop and avail a dedicated portal to facilitate the process, with access given to designated NCDMB staff for monitoring and necessary functions.

’All applications for the fund shall be through the web and NEXIM shall develop and avail a dedicated portal to facilitate the process, with access given to designated NCDMB staff for monitoring and necessary functions”

 

ELIGIBILITY

Oil and gas servicing companies that are registered with the NCDMB and has a commercially viable contract with IOC (International Oil Companies) and NOC (National Oil Companies) like Shell, Chevron, Seplat, Agip, NPDC, NNPC and possibly be a member of PETAN (Petroleum Technology Association) or OGTAN (Oil and Gas Trainers Association).

NCDMB Working Capital Capacity Checklist

ELIGIBLE TRANSACTIONS

  1. Transactions connected with oil services contracts.
  2. Contracts to boost the operations and viability of a qualifying NOSP (Nigeria Oil Service Provider).
  3. Transactions for the supply of low end assets and or other equipment relating to the execution of an oil service contract from IOC/NOCs.

 

REQUIRED DOCUMENTS

  1. Certified true copy incorporation document.
  2. Contract (signed PO) or payment invoice.
  3. DPR Permit /NOGIC JQS certificate
  4. Proforma invoice
  5. Audited accounts
  6. Completed Questionnaire/checklist

NCDMB Loan Application Form

Collateral

  • Assignment of contract
  • Domiciliation of Proceeds/Assignment of receivables
  • Irrevocable Standing Payment Order (ISPO) from Receiving Bank(s)
  • Assignment of receivables
  • Association Guarantee from PETAN(Petroleum Technology Association of Nigeria (PETAN) ) or OGTAN(Oil & Gas Trainers Association of Nigeria (OGTAN))
  • Insurance cover with NCDMB/NEXIM noted as loss payees
  • Registration of Invoices/Movable Assets with National Collateral Registry

 

The partnership between NCDMB and NEXIM under the scheme is in accordance with the mandates of both organizations towards the promotion and development of services-related companies to effectively compete domestically and internationally, especially against the backdrop of the African Continental Free Trade Agreement (AFCFTA).  The synergy is also in the realization of the services sector with contribution of over 50% to the Gross Domestic Product (GDP).

If you have decided to expand your business scope, then get in touch with the team to support your application for Financing today.

MATOG CONSULTING

ELIZABETH PLAZA, BY CINEMA SITE

72 OKUMAGBA AVENUE, WARRI

DELTA STATE

08023200801; 08062532219

enquiry@matogconsulting.com

 

 

 

 

 

 

 

 

There are no comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Start typing and press Enter to search

Shopping Cart