$200 Million Allotment as Intervention Reserves for Local Oil Companies in Nigeria

By Abdul Rahman Bangura–

Muhammadu Buhari President of Federal Republic of Nigeria
Photo Credit: Danilposh

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- $200 million has been endorsed by President Muhammadu Buhari as an allocation of budgets for an Intervention Fund to local factories and service providers in the oil and gas sector. It was part of the President’s speech during his June 12th, 2020 Democracy Day Speech on Friday.

According to the President, ‘’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.’’

As at July 2019, the Nigerian Content Development and Monitoring Board (NCDMB), which is obliged to administer this fund, had expended about $160 million to local oil firms.

In a related development, the president in his speech announced Federal Government’s proposal, to supervise bidding procedure for fifty-seven Marginal Oil Fields in order to boost and effected primarily in this interval of a fiscal dilemma effected by the Novel Coronavirus pandemic and supplementary improvement participation of Nigerian firms in oil research and exposition of business. On the upkeep of a facilitative business climate in the oil and gas sector, President Buhari brought up that, with the sustainability meeting of youths, opinion leaders, and other stakeholders, peace has been rebuilt in the Niger Delta Region and oil production levels.

Announcing his commitment to the development of the region and ensuring that development meant for the people of the Niger Delta to get to them, the president authorized a Forensic Audit of the Niger Delta Development Commission.

The president also declared openly, the Federal Government’s allotment of N7.7 billion for 868 mortgages and salvage of 1,200 housing units to low and middle-income earners. In addition, Buhari said, ‘’Our pursuit of affordable housing for the low and middle-income earners has received a boost with the delivery of 1,200 housing units, provision of 520 service plots with infrastructure through a Public-Private Sector partnership and the issuance of 868 mortgages totaling N7.7 Billion. Similarly, Home Renovation Loans totaling N16.2 Billion have been granted to 19,210 people.’’

He also reiterated the federal government’s commitment to continue with investments in the Aviation sector in order to position it as a travel and trade hub in West Africa and the African continent in general.

Airport Terminals in Abuja, Lagos, Kano, and Port Harcourt are being expanded, while the rehabilitation of the Enugu Airport is almost completed. All the airports are being raised to international standards with the provision of necessary equipment, especially navigational aids as a way to ensure world-class safety norms.