NCDMB’s $200m Intervention Fund To Benefit Oil & Gas Firms Including Kabelmetal Nigeria Plc’s
06 Jun 2018
Kabelmetal Nigeria Plc’s (a Nexans affiliated company) request to promote shipboard and petrochemical/refinery cables as potential Nigerian content has been approved by the Nigeria Content Development Monitoring Board (NCDMB).
The company's new capacity to manufacture shipboard, umbilical, refineries and petrochemical LV cables for the offshore market has also boosted local ability in the petroleum industry.
Speaking at the recent facility visit to Kablemetal in Lagos, NCDMB’s Executive Secretary, Engr. Simbi Wabote, said that the company and other Cable manufacturers in Nigeria will get all necessary support they need to boost their capacities and meet the expectations of the oil and gas industry.
With recent the launch of 200 million dollars Nigeria content intervention fund, which is open to contributors of the fund, Kablemetal is also entitled to access the fund by virtue of the contracts they get in the industry.
They company also has the requirement to take part in the application of the intervention fund which has eight percent interest rate and five-year tenure maximum limit of 10 million dollars to support financial challenges of the industries in that sector.
Simbi affirmed that the issues with banks finances was why the fund was launched to support companies that have the potential to employ Nigerians and to retain the much-needed foreign exchange in the country.
Chief Executive Officer, Kabelmetal Nigeria, Robert Kretschmer, noted that they have more orders than supply but can only use the money they get to re-invest on material then go gradually to meet up with the finances available.
“The challenge of manufacturing business in Nigeria is not so simple and its known that manufacturing is probably the most difficult aspect of business in Nigeria because we have the highest exposure in terms of financing because you get your own raw materials you start producing to sell before you get your money so we much more exposed to the finance side”.