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Kachikwu assures local oil firms of support

Minister of State for Petroleum Resources Dr. Ibe Emmanuel kachikwu, has said that his major priority in the petroleum industry, includes creating an enabling template for the survival of the local oil industries.

The minister of state for petroleum, said this, while witnessing the signing of memorandum of understanding ceremony Thursday in Abuja between local content development and Monitoring Board NCDNB and the Bank of industry BoI, a programme geared at empowering the local oil companies in Nigeria to spur them to contribute more to the nation’s economy.

According to him, the project palliative is a priority project of the leadership geared at motivating the local
companies for optimal production; and for the quicker growth of Nigerian economy.

He further stressed that he was committed to raising the fund from $200m to $1billion to ensure the continued empowerment of the local oil companies.

He said, “My office is to set up a fund raising committee to ensure that this programme of empowering the local oil companies is a continued one and by the time we leave office, we would have ensured that most of the companies provide what we need in the country, because we have see that the creation of the local content development and monitoring board has achieved a lot in giving opportunities to Nigerians.

“I will also like the Bank of Industry to not just sit and watch, but to also go into financial drive to help
make funds available for the companies to access.”

He said that the local content development and monitoring board and the BoI, should ensure that companies in the oil producing areas have better access to the loans, so as to assist people from the areas.

This, he said, would encourage them. “You must be careful to ensure that the fund go around all geographical regions. The oil development companies must not struggle to access these funds,” he warned.

Speaking earlier, the Executive Secretary, Local Content Development and Monitoring Board, Mr. Simbi K. Wabote, said that the department would, in a short period of time, ensure hundred per cent supply of the need of all Nigerians.

He noted that the department was engaged in fabrication of capacity vessels to cushion the financial needs of the department.

“We are now engage in fabrications; and there is nothing we cannot manufacture. We are also engage in assembling offshore vessels; and the facilities are used to shift about 200 barrels a day; and we are proud of that. We are however targeting about 14billion out of 20 billion barrels,” he said.

Also speaking, the Managing Director of Bank of Industry, who was represented by Olukayode Idowu, said that the bank is happy with the signing ceremony, as it would encourage local content to increase
local capacity, stating that most of its loans remain at single digit, which is a plus to the Nigeria oil companies.

Interestingly, most of the oil companies who were present during the signing, commended the gesture stating that it is a good beginning in encouraging local oil companies to grow.

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