290 Nigerian contractors Gets N472bn Loan Fom Shell
Some Nigerian contractors have received loans worth over N472bn under the Shell Contractor Support Fund, which was set up by Shell Companies in Nigeria to help vendors and suppliers in the oil and gas industry to secure funds at reduced interest rates, relaxed collateral requirements and quicker processing time.
Also, Shell Companies in Nigeria said they awarded contracts worth over N230bn to indigenous contractors in 2017, representing 94 per cent of the total contracts for that year.
“We’re pleased to support Nigerian contractors to play greater roles in the oil and gas industry,” the Country Chair, Shell Companies in Nigeria and Managing Director, Shell Petroleum Development Company of Nigeria Limited, Osagie Okunbor, said while launching the 2018 Shell Nigeria Briefing Notes in Lagos on Thursday.
“As pioneers in the industry, we have taken deliberate steps to award contracts to Nigerian vendors and worked with them to grow their capacity, cost efficiency and delivery timelines. We discovered, however, that access to finance has been a challenge, and the search for a solution led to the Shell Contractor Support Fund,” he added.
Shell Companies started their intervention in 2011 with the Shell Kobo Fund, which gave way to the Shell Contractor Support Fund the following year, with seven participating financial institutions that have since set aside more than N690bn for contract execution by indigenous companies.
The lenders are Access Bank Plc, Skye Bank Plc, Zenith Bank Plc, Stanbic IBTC Bank, First Bank of Nigeria Limited, Standard Chartered Bank and Guaranty Trust Bank.
Nigerian ownership of key assets such as rigs, helicopters and marine vessels is also a focus, with Shell Companies providing technical and financial support to firms across a range of sectors, including transportation, manufacturing and research and development.