The federal government has pledged to take legal action against oil and gas companies that have not repaid loans received from the Nigerian ...
The federal government has pledged to take legal action against oil and gas companies that have not repaid loans received from the Nigerian Content Intervention Fund, which is overseen by the Nigerian Content Development and Monitoring Board.
The State Minister for Petroleum Resources (Oil), Heineken Lokpobiri, issued a warning on Thursday at the NCDMB Towers in Yenagoa, Bayelsa State, during an event hosted by Tamrose and the NCDMB to mark the complete repayment of a $10 million NCI Fund loan by Tamrose Limited.
Tamrose Limited, a local oil and gas services firm, has recently confirmed the successful repayment of a $10 million loan it secured in 2019 from the NCDMB.
The Executive Chairman of Tamrose Limited, Mr. Ambrose Ovbiebo, referred to the repayment achievement as an indicator of the strict criteria used by NCDMB when choosing recipients and the effect of its efforts in enhancing the capabilities of local companies, noting that the loan helped increase its fleet from four to 15 vessels.
Lokpobiri, who voiced worries about the behavior of certain firms that had received funds, cautioned that the government would no longer accept failures in repaying loans.
Dear ladies and gentlemen, I would also like to take this chance to urge all our companies benefiting from this fund; they must pay attention to their responsibilities in repaying the loans. If you fail to repay the loans, this money will not be accessible for other companies to also gain from.
"The funds that are completely repaid by Tamrose will be used by other companies to expand their capabilities. However, some companies take this money and do not repay it, with some intentionally refusing to pay," he stated.
Lokpobiri expressed concern that certain companies, even though they had access to a single-digit facility, still opted not to fulfill their responsibilities. He stated that some companies had communicated their choice not to repay the loans they received from the NCIF.
"There have been instances where companies visit my office and say, 'We just want to pay this money. It's a single-digit facility. If you go to a regular commercial bank, the interest rate is 36 to 38 percent. This one is below 10 percent. So I think, 'I wouldn't get such a low-cost fund, so why should I pay?' But I respond, 'Look, if you are a person of integrity, or a company with integrity, you must pay,' " the minister stated.
He stated that businesses that completely settle their loans might still be eligible to apply for additional assistance through the same program. The minister emphasized that the government would utilize legal methods to reclaim the money from companies that fail to meet their obligations.
If you settle the payment in full, you can go to the NCDMB and reclaim the funds. However, if you decide to back out of your responsibility, you are expected to forfeit your honesty, and you aren't worthy of support from any other company.
"Additionally, as a lawyer, I would like to mention that for those who believe they don't have to pay, we will utilize legal means to reclaim this money so that it can be used for the development of this sector. We will not permit anyone to use this money to purchase private jets. We will track down anyone who has received this money without fulfilling their payment obligations," he cautioned.
Lokpobiri stated that upon taking office, he was informed by the NCDMB and provided with a comprehensive list of recipients of the intervention fund, which, according to him, indicated extensive non-compliance.
He revealed that approximately 49 out of the 70 companies that received the loans have not yet repaid them. "When I took on the role of minister, I was given an overview by the NCDMB and also received a compilation of everyone who has benefited from this NCI fund. The findings were quite disappointing."
Approximately 70 companies or more have utilized this fund. Tamrose along with 20 others have settled their loans, indicating that out of the 70, only 21 have completely repaid their loans. He emphasized, "I am not going to claim that this fund was established for a particular reason—to enhance local capabilities, not just to rescue the oil and gas sector in Nigeria, but also to support the global oil and gas industry."
The minister praised Tamrose for its dedication and expansion, calling it an example for other indigenous businesses. "I am pleased that Tamrose has extended its reach beyond Nigeria to provide logistics services in the oil and gas sector across Africa," he stated.
He confirmed that the Federal Government would keep supporting reliable operators in increasing their capabilities and activities. The minister emphasized that the government would use legal methods to retrieve the money from companies that have failed to meet their obligations.
As the minister and chairman of the NCDMB governing council, our dedication is to keep expanding this fund so that we can keep supporting people like Tamrose, enabling them to enhance their skills and provide the essential services required for the oil and gas sector.
"I would like to congratulate Tamrose and the NCDMB on this collaboration, and this highlights the need for increased oversight of companies that should gain from it. We aim to see more businesses come forward to access these resources, invest in them, and expand the opportunities for investment," he emphasized.
He believes the oil and gas sector cannot succeed without robust logistics firms, which is why he is pleased that the NCDMB, via the NCI fund, has structured it so that companies such as Tamrose can keep using the fund's availability to expand their offerings.
Praising Tamrose for its wise utilization of the facility, Lokpobiri characterized the company's journey as one of discipline and expansion.
Tamrose's tale is about how various individuals were given seeds to cultivate. Some opted to use their seeds for cooking, but Tamrose decided to plant them, and the seeds flourished from four to 15. This is an example I would like to suggest to the whole industry.
"So, I am pleased to acknowledge the achievements of the collaboration between Tamrose and the NCDMB," the minister added.
The Executive Secretary of the NCDMB, Felix Ogbe, commended Tamrose for its commitment to repaying the loan. Ogbe pledged to stakeholders that the board is dedicated to assisting investors within the oil and gas industry.
The board noted that thanks to the NCI Fund's support, Tamrose has grown its operations and now operates a fleet of 15 ships, including 10 security patrol vessels and five platform supply vessels.
Provided by SyndiGate Media Inc. (Syndigate.info).
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