The Federal Government (FG) has approved $30million as direct lending to the Nigerian oil service providers.
The sum was approved under the Nigerian Content Development and Monitoring Board (NCDMB)/Nigerian Capital Development Fund (NCDF) working capital scheme.
Engr Wabote Simbi, Executive Secretary, NCDMB, made the disclosure, on Monday, at the signing of a Memorandum of Understanding (MoU)with the Petroleum Technology Association of Nigeria (PETAN)on the Implementation of the NCDMB-PETAN Working Capital Scheme for Nigerian Indigenous Oil Servicing Companies.
He said “the NCDMB Governing Council under the leadership of the Minister of State for Petroleum Timipre Sylva has approved the Sum $30million under the NCDMB/NCDF Working Capital Scheme for direct lending to Nigerian Oil Services Providers.”
According to him, the Working Capital Scheme is expected to support operations of beneficiaries against the adverse effects of COVID-19 Pandemic.
This he said include loss of contract due to the low oil price of $40/barrel benchmark.
He stated that the initiative will help bridge cash flow gaps, support operations and prevent staff layoffs in the industry.
“In line with the mandate of the Board, a business continuity initiative has been jointly developed with the Petroleum Technology Association of Nigeria (@PETANngr) under the NCDMB Local Content Intervention for Target (LIFT) Sectors,” he added.
