Federal Government unveils $200m bailout for oil, gas firms

  The Federal Government has launched a fund with an initial value of $200m to support local oil and gas firms.

  The intervention fund, according to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, is part of measures to improve access to low-cost credit for oil and gas firmsl operating in the economy.

  The Nigerian Content Development Fund is expected to be financed through the allocation of one per cent of the value of all contracts awarded in the upstream oil and gas industry, the petroleum ministry said.

  The minister called on the Bank of Industry to work with the Nigerian Content Development and Monitoring Board to raise the local content intervention fund from the current $200m to $1bn.

  The event was attended by the Managing Director of BoI, Olukayode Pitan; the Executive Secretary, NCDMB, Simbi Wabote; and other major players in the oil and gas industry.

  Kachikwu said while the sum of $200m had been set aside for the fund for disbursement, the ultimate goal of the government was for the fund to increase to $1bn in order to meet some of its objectives for the sector.