Intervention Fund: FG Support Local Oil Firms with $200m disbursements

Chinazor Megbolu

Towards boosting local content, the Federal Government of Nigeria has announced a $200m support for the oil and gas sector.

This was disclosed by President Muhammadu Buhari during his speech to mark the June 12, 2020 Democracy Day adding the fund is to support indigenous participation in the oil and gas sector towards growing local content.

The President also noted that the disbursement of funds from the $200 million Nigerian Content Intervention Fund is for the indigenous manufacturers and service providers in the oil and gas sector.

He explained that the fund is part of the Federal Government’s drive to boost local participation in the oil and gas sector in order to continue to grow local content and invariably increase investment in the sector.

‘’We continue to grow local content in other areas of the oil and gas sector with the disbursement of funds from the $200 million Nigerian Content Intervention Fund to indigenous manufacturers and service providers,’’ the President said.

He further recalled that the Nigerian Content Development and Monitoring Board (NCDMB), which has the responsibility to manage this fund had disbursed about $160 million to local oil firms as of July 2019.

The President hinted on the Federal Government’s move to conduct bidding process for 57 Marginal Oil Fields in a bid to improve revenue due to the crisis as a result of the Covid-19 pandemic and further increase participation of local firms in oil exploration and production business.

The President also pointed out that with the sustained engagement of youths, opinion leaders, and other stakeholders, peace has returned to the Niger Delta Region and oil production levels maintained as well as boosting a conducive business atmosphere for the oil and gas industry.

He, however, maintained that the federal government is committed to developing the region and ensure that development meant for the people of the Niger Delta gets to them.

The President in his speech authorized a Forensic Audit of the Niger Delta Development Commission.

On crude oil, he also noted the federal government will continue to invest in the aviation sector in order to position it as a travel and trade hub in West Africa and the African continent as a whole.

The reiterated that Airport terminals in Abuja, Lagos, Kano, and Port Harcourt are being given a facelift and expansion as well as the rehabilitation of the Enugu Airport, which is near completion.