By Alphonsus E.W
Nigeria’s Liquefied Natural Gas company (NLNG) has established a $1 billion Local Vendor Financing Scheme that will provide domestic contractors with easy access to bank loans at affordable rates.
The scheme was flagged off after the signing of deal between the company and 5 participating banks including Access Bank, First Bank of Nigeria, Standard Chartered Bank, United Bank for Africa and Zenith Bank, Premium Times reported.
It is aimed at reducing barriers such as high operating cost and inadequate mobilization capital, which limits local contractors in effectively executing projects.
“This is just a step, and in the right direction. The success of any local contractor is linked to larger and smaller businesses around it in the value chain,” said Mr Babs Omotowa, NLNG’s MD/CEO.
Following its launch, registered indigenous contractors can approach any of the participating banks for a loan request with proof of an NLNG awarded contract.