The Nigerian National Petroleum Corporation (NNPC) Limited has advocated for the establishment of more regional organizations to finance energy-related initiatives in Nigeria and throughout the African continent.
Olufemi Soneye, the NNPC spokesperson, made this announcement in a press conference on Wednesday in Abuja.
Soneye reports that the request was made at the 23rd Nigeria Oil Gas Conference and Exhibition (NOG Energy Week) in Abuja by Mr. Umar Ajiya, Chief Financial Officer of NNPC Ltd.
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.
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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 Initiatives in Nigeria
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 TotalEnergies, Shell, Eni, and others.
These partnerships have played a crucial role in developing the country’s energy infrastructure.
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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.
