N755b Loan Facility for Local Contractors

As part of its contribution to sustenance of the local content policy, Shell Petroleum Development Company (SPDC), in conjunction with five banks have signed a Memorandum of Understanding to avail facility worth N755billion ($5b) to Nigerian Contractors. This new move is believed to be a major step in dealing with incapacitation of Nigerian contractors whose impact is rather dismal in the oil & gas sector due to lack of funds. Speaking on the occasion of the signing of the MOU, the Managing Director of SPDC, and Mr. Mutiu Sunmonu stated that the scheme was being funded by First bank; Citi Bank, Access Bank, Fidelity Bank, Standard Chartered Bank and David L ROSS Associates. Sunmonu reiterated the need for Nigerian contractors to see this opportunity as leverage to measure up with foreign contractors in the country by utilizing these loans for the reasons which they were collected. It would be recalled that the local content policy is aimed at empowering indigenous companies to play more crucial roles in the oil and gas sector.