NLNG Kicks Off N500 Million Micro-Credit Scheme For Host Communities

Nigeria LNG Limited yesterday kicked off its N500 million micro credit scheme for host and pipeline communities with a Memorandum Of Understanding with Community Development Foundation (CDF) and AllStates Trust Bank. The scheme would be funded entirely by NLNG, while CDF and AllStates Bank will implement the programme and manage the fund respectively.

The ceremony which took place at the company’s headquarters in Lagos was in fulfilment of a pledge last year by the Managing Director, Nigeria LNG Limited, Mr. Andrew Jamieson that the company will set up and fully fund a scheme to reduce poverty and promote business development in the host communities.

Screening and training of beneficiary groups from host communities will commence immediately, while loans to successful groups will be disbursed after the screening exercise. The company’s primary host community is on Bonny Island. It also caters for over 110 contiguous pipeline communities, harbouring its 217-km pipeline.

Specifically, the scheme will provide start-up credit facilities, keenly focused integrated financial and technical services to small businesses with significant implications for advancing them into the mainstream of the economy, in addition to simple, efficient, low-cost, uninterrupted flow of micro-finance and business advisory services to the low-resource entrepreneurs.

Mr. Jamieson, and the NLNG’s Deputy Managing Director, Mr. Ibrahim Dahiru Waziri, signed for the company, while Mr. Duate Iyabi signed for AllStates Bank and Mrs. Pamela Sadauki signed for CDF. Iyabi is the managing Director of AllStates Trust Bank while Sadauki is the Chairman of CDF.

"I believe that the path we are embarking on today will be judged by generations to come as crucial in uplifting the quality of life of the communities to be served by the scheme’, said Iyabi.

"Many of us are aware that the giant economies of the United States and some European economies grew rapidly in the past decade. The little known fact that many economists now recognise is the fact that much of the growth was fuelled by efforts of small businesses. The government had created the enabling environment for small businesses to thrive, and given assistance by some corporate citizens who are socially responsible, small businesses could receive the help needed, both financially and the technical expertise for running small businesses," he added.

The event for Sadauki was "another step towards the future economic growth of the communities through a micro-credit scheme and enterprise promotion".

She also said micro-finance would have a ‘multiplier effect on the community that spills over to good nutrition, improved health, education and self-esteem and improved social status within the society due to improved family income’.

Jamieson however said that the overall objective of the scheme was to alleviate poverty in the host communities by increasing the level of economic activities; create avenues for self-employment and reduce dependency on oil and gas industries for infrastructures and economic survival; and also to help communities to cross the threshold from indigence to subsistence & self-reliance

He recalled efforts of the company to promote the welfare of the host communities and improve social and economic infrastructures of the host communities, saying the major thrust of the company’s community relations programme was self help and sustainable development.

The company which started exporting LNG two years ago, has so far, awarded over 632 Scholarship worth over N38 million to indigenes of NLNG host communities, completed over 78 self help projects in the pipeline communities as well as embarked upon power, water upgrading projects and road construction in Bonny in conjunction with other joint industry companies, namely Shell Development Company and Mobil. The projects will cost over N1 billion.

NLNG is currently subsidising the salary of teachers in Bonny Island to ensure that they do not quit classes in search of construction jobs.

NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).