(Ecofin Agency) - The Ministry of Petroleum has on Thursday launched the Nigerian Content Development Fund (NCDF) with an initial value of $200 million to support local oil and gas firms. This is in line with efforts by the government to improve access to low-cost credit across the economy.

According to the Minister of State for Petroleum, Emmanuel Kachikwu (photo), the fund would provide finance to energy firms that intend to establish manufacturing facilities or acquire assets such as oil rigs. It would also offer project financing and help refinance existing loans. “I would like to see this fund going to cutting edge, tech-driven businesses,” he said.

Kachikwu noted that the objective was to increase the size of the fund to $1 billion. Beneficiaries would be able to borrow up to $10 million for a single project or investment at a single digit interest rates over five years, against the double digit interest rates being charged by commercial banks in Nigeria.

The Minister added that the fund would be managed by the Nigerian Content Development and Monitoring Board (NCDMB) alongside state-run Bank of Industry (BoI).

Anita Fatunji