The Nigerian National Petroleum Corporation (NNPC) Limited has called for the creation of more local institutions aimed at funding energy projects in Nigeria and throughout Africa. This is contained in a press statement by the spokesperson of NNPC, Olufemi Soneye, on Wednesday in Abuja.
According to Mr. Soneye, the appeal was made by the Chief Financial Officer of NNPC Ltd, Mr. Umar Ajiya, at the ongoing 23rd Nigeria Oil Gas Conference and Exhibition (NOG Energy Week) in Abuja.
During a panel session titled “Accelerating Investment, Enabling Industry Growth, Meeting Energy Demand,” the CFO emphasized that amidst global financial institutions’ reluctance to fund oil and gas projects due to environmental concerns, there is a crucial requirement for the establishment of additional institutions similar to Afreximbank and the proposed Africa Energy Bank to finance energy infrastructure projects.
He further noted that the key to resolving the paradox of endemic energy poverty in the midst of abundant energy resources in Nigeria is to create an enabling environment to aggressively attract investment into the energy sector.
“There’s room for everyone to make sure that investment comes back to Nigeria”, he said.
Funding energy projects in Nigeria has usually been the responsibility of NNPC and its joint venture partners, which typically involve major foreign oil companies such as Total Energies, Shell, Eni, and others.
These partnerships have played a crucial role in developing the country’s energy infrastructure.
However, recent developments have signalled a potential shift in this landscape. Financial institutions such as Afreximbank and the newly established $5 billion African Energy Bank (AEB) are emerging as key players in financing energy initiatives across the region.
Despite these advancements, Nigeria still grapples with substantial energy infrastructure deficits.
This deficit has hindered efforts to boost production and spur growth in the oil and gas sector. The inadequacies in infrastructure posed challenges in meeting domestic energy demands and leveraging Nigeria’s vast natural resources effectively.
The State Minister of Petroleum (Oil), Heineken Lokpobiri, recently proposed that the $5 billion Africa Energy Bank should have its headquarters in Abuja.
He believes this move will attract more local investment and funding for Nigeria’s energy projects. In addition, NNPC and Total Energies recently signed a deal worth $550 million. This agreement shows an ongoing partnership between Nigeria and international oil companies to boost the country’s energy capabilities. The deal is a positive step towards fixing some of Nigeria’s energy infrastructure problems. Moreover, Lokpobiri also mentioned that Nigeria is expecting a $10 billion investment soon.
These efforts and agreements show Nigeria’s active approach to attracting more investment and improving its energy sector.
