NLNG > Our CSR > NLNG Vendors Finance Scheme
09.jpg

NLNG Vendors Financing Scheme (NVFS)

Nigeria LNG Limited puts a premium on Nigerian Content. From inception, the ideals of the concept of Nigerian Content has been ingrained in the way the company does business, with the aim of building capacity of local companies that provide services. This is guided by NLNG's vision of helping to build a better Nigeria through the stimulation and the development of the manufacturing industry, which has hitherto been comatose, and the transfer of technical knowledge to indigenous companies. 

Through contracts/procurements & projects tied to the six trains currently in operation and continuous sponsorship of  various community projects, ample opportunities have been provided for Nigerian companies and contractors to provide services and supplies to the company whilst enhancing their capabilities to compete on an international scale.

NLNG has an impressive track record as testament to this fact, with landmark development and partnership with local manufacturing companies. Some of these entities have gone to become world class companies, producing and providing rare, high-tech products and services to other projects in the country. Companies like Holborn Nigeria Limited, Waste Pipes and Drainages (WPD), Dorman Long Nigeria Limited, Nexans Kabelmetal are part of a long list of manufacturing companies that have gained from the NLNG's commitment to Nigerian Content.

THE SCHEME

NLNG continues to encourage achievement of the spirit and letter of the NOGICD Act 2010. By embedding the requirements of the NOGICD Act 2010 in all its contracting and procurement processes, the company has taken steps towards increasing its Nigerian Content achievements.

The latest of these steps is the introduction of N1 billion (One billion Naira) NLNG Vendors Financing Scheme (NVFS). NLNG recognises the fact that funding is the bane of the Nigerian manufacturing industry. To tackle this challenge, the scheme facilitates access to funds by NLNG registered vendors (suppliers of goods or contractors of services) for their NLNG contracts or procurement orders at a lower rates which are pre-agreed negotiated rates from the banks participating in the scheme This way, vendors get speedy access to finance and reduce production cost amongst other perks of this scheme

THE FACTS

A scheme to support the Local Content Act as Funding has been cited as the main challenge to vendor's growth and participation in the delivery of goods and services to the oil and gas sector.

This is a platform for NLNG Vendors (suppliers of goods or contractors of services) who are registered Nigerian entities to obtain finance for their NLNG contracts or procurement orders at competitively negotiated rates from the banks participating in the scheme. The absolute aim is to ensure the speedy access to finance, reduced cost and simplified documentation to create benefits to the vendors.

The scheme will not impede the company's contractual rights in relation to issued contracts and purchase orders. The size of the scheme will be up to N1 billion (USD 500million) with five participating banks.

PARTICIPATING BANKS

  • United Bank of Africa
  • First Bank of Nigeria
  • Access Bank
  • Zenith Bank
  • Standard Chartered Bank

BENEFITS

  • Alleviating funding problems faced by Nigerian vendors.
  • Reduces operating cost of NLNG vendors
  • Drive the growth of Nigerian vendors
  • Improve Project Delivery & Turn-Around-Time (TAT)
  • New Credit & Liquidity Source
  • Working Capital Benefit
  • Easy enrolment

HISTORY

Nigeria LNG was incorporated in 1989. In November 1995, a Final Investment Decision (FID) was signed by the Shareholders to build a Liquefied Natural Gas Plant in Finima, Bonny Island in Rivers State.

In December 1995, a consortium of engineering firms comprising Technip, Snamprogetti, M.V. Kellog and Japan Gas Corporation (TSKJ) was awarded a turnkey Engineering, Procurement and Construction (EPC) contract for the construction of the Plant, the Gas Transmission System and the Residential Area.

 

​NSML is committed to ensure that Nigerian crews are well represented in numbers of officers that work onboard NLNG Vessels and third​ party charterers. The Nigerianization P​​lan is to ensure that Nigerians are recruited straight from the cadetship phase and sponsored to obtain the CoCs in schools abroad after which their careers with the company is appropriately monitored and managed as they rise within th​e ranks.​

Read More

 

Bonny Gas Transport Limited was established in 1989, following the incorporation of Nigeria LNG Limited, to provide shipping capacity for NLNG project.
READ MORE ​​

Copyright © Nigeria LNG Limited.