Shell commits $2.2bn to funding local contractors

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Shell has pledged to provide $2.2 billion for funding local contractors in the Nigeria, Independent reports.

In its latest report, the company disclosed that in order to support local contractors, the Shell Contractor Funding initiative was expanded with eight participating banks committing about $2.2 billion to fund contract execution by Nigerian companies working for Shell Companies in Nigeria.

It indicated that in December 2016, the programme was among the few initiatives recognised and approved by the Organisation for Economic Cooperation and Development (OECD), plenary session on “Shared Value creation and local content” included in the compendium of global best practices.

 The company stated that since the programme’s creation in 2011, loans worth approximately $1 billion have been awarded to 220 small and mediumsised Nigerian enterprises with no recorded defaults on the loans. According to Shell, it was also recognised by the IPIECA Local Content Guideline released in 2016 among the best practices of the industry. IPIECA is a global oil and gas industry association for environmental and social issues.