By Chris Udochukwu
ABUJA FCT – Most Nigerians are unaware of the funding opportunities lying in these underlisted three government agencies; the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Maritime Administration and Safety Agency (NIMASA).
They all have same thing in common; they are provided for by the constitution.
NMDPRA has Midstream and Downstream Gas Infrastructure Fund (MDGIF) which generates money from payment of 0.5% of all wholesale transactions of natural gas or refined petroleum products whether refined locally or imported. This was signed into law in 2021 under Petroleum Industry Act (PIA). It’s aimed at financing gas infrastructure projects.
NCDMB has Nigerian Content Development Fund (NCDF) which generates money from payment of 1% of every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity, or transaction in the upstream sector of Nigeria oil and gas industry. This was signed into law in 2010 under the Nigerian Oil and Gas Industry Content Development Act (NOGIC). It’s aimed at investing in any activity that will promote local content in particularly the Oil and Gas Industry.
NIMASA has the Cabotage Vessel Financing Fund (CVFF) generated from a surcharge of 2% of the contract sum performed by vessels engaged in coastal trade, monies generated from tariffs, fines and fees for licenses and waivers. This came live in 2003 under Coastal and Inland Shipping (Cabotage) Act. It’s aimed at developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous/domestic coastal shipping operators.
Today, NMDPRA has disbursed the first batch of N122bn to 6 companies to deliver Gas projects. Any company that fulfills the requirements can apply
The NCDMB, through the Bank of Industry has so far invested more than $350m from the NCDF to more than 70 indigenous companies operating in the oil and gas sector to develop their capacity and enhance local content. It’s open and available to all companies that meet their requirements.
The Cabotage Fund in NIMASA has not been properly utilized due to some hick-ups but is still open to qualified shipping companies with requirements.
These are funds generated to develop Nigeria one way or the other. Having proper information about them will help companies go along way in terms of asset financing.
