Nigeria's oil and gas industry needs roughly $25 billion yearly to drive fresh investments and boost production output. Local and international banks agree this gap can't be closed without deeper cross-border lending partnerships.
ProvidusUnity Bank and US-based Regions Bank recently hosted a Lagos roundtable to bring together energy firms and financiers. The gathering explored new funding approaches for projects along Nigeria's entire oil and gas supply chain.
The roundtable, titled "Financing Growth Across Nigeria's Oil & Gas Value Chain," drew bankers, oil and gas executives, government officials, and representatives from the Nigerian National Petroleum Company Limited (NNPC Ltd.). They discussed ways to improve long-term capital availability for the sector.
Biodun Ariyo, head of global trade and structured finance at ProvidusUnity Bank, said the initiative aims to strengthen discussions on trade finance, investment, and project financing. He told attendees the platform would connect industry players with funders capable of backing large energy projects.
Financing remains one of Nigeria's energy sector's biggest hurdles, Ariyo noted, despite recent reforms designed to pull in private capital. "The platform is intended to connect stakeholders with the right financing structures and partners needed to accelerate growth across the oil and gas value chain," he said.
International lenders are increasingly targeting Africa's energy sector as governments hunt for capital to develop oil, gas, and midstream assets. Many also want to expand local power supply.
Thomas Matthias, executive director for international trade finance at Regions Bank, said his organisation plans to strengthen its African footprint by working with established local financial institutions. "Africa has been overlooked for far too long, and that must change," Matthias told the gathering.
He added that Regions Bank's experience financing Nigerian transactions has given it confidence to expand its market presence. Nigeria is well-positioned to play a bigger role in Africa's energy landscape as global markets shift, he argued, with room to attract investment and raise output.
Experts at the roundtable stressed that financing models must evolve to suit the capital-hungry demands of oil and gas development. This is especially true for gas projects, marginal fields, and infrastructure work.
Panel sessions examined insurance products for cross-border deals, funding structures for marginal and unused assets, gas sales strategies, and the importance of sustained liquidity for major energy investments.
Participants discussed boosting Nigeria's bankable energy projects by pooling the strengths of domestic and foreign financial institutions. Together, they could craft custom financing packages for the sector.
Nigeria has struggled to draw adequate investment into its oil and gas industry in recent years despite rich hydrocarbon reserves. Analysts say affordable, long-term financing access will prove vital if the country is to raise crude output, speed up gas development, and meet its energy security and economic growth targets.
