Total To Fund Nigerian Contractors Under $7.5Bn Initiative
sustainable funding channel for the energy giants’ local contractors.
Spurred by the double digit lending rate in the country, inadequate funding has been a major cause of business failure in Nigeria. Total MD/CEO Mr. Guy Maurice, said over the weekend the MoU provides for sustainable funding relationship between the banks and Total’s indigenous contractors.
Based on the Memorandum of Understanding (MoU) which is in line with the Nigerian local content policy, the contractors, which include vendors and suppliers, will sufficiently receive capital which also will be domiciled with the partnering banks.
Mr. Jibril Aku, the Managing Director of Ecobank Nigeria, one of the partnering banks, explained the finance programme would help sustain the contractors and help them play a more active role in the oil and gas sector.
Aku called the NCI a “good initiative.” He furthered said that: “The key challenge now is how to make a success of this programme, so that we can continue to develop and grow new customers coming to the bank.”
The selected 8 lenders include Ecobank Nigeria, Zenith Bank, Diamond Bank, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), Standard Chartered Bank, Access Bank and Fidelity Bank.