NNPC Ltd calls for development of institutions to finance energy projects

● He says everyone has a role to play in reducing risk in the sector to attract investors

[Press Release] The Nigerian National Petroleum Company Limited (NNPC Ltd) has called for the creation of more local institutions in Nigeria and Africa that can provide financing for energy projects aimed at addressing energy poverty.

The appeal was made by the Chief Financial Officer of NNPC Ltd, Mr. Umar Ajiya, at the 23rd Nigerian Oil and Gas Conference and Exhibition (NOG Energy Week) underway in Abuja on Wednesday.

Speaking at a panel session on “Accelerating Investment, Enabling Industry Growth, Meeting Energy Demand,” the CFO argued that in the face of global financial institutions’ reluctance to finance oil and gas projects due to environmental concerns, there was a need for more institutions such as 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 context of Nigeria’s abundant energy resources is to create an enabling environment to aggressively attract investment in the energy sector.

He listed the passage of the Petroleum Industry Act (PIA) and the recent promulgation of three executive orders in the sector by the President as concrete measures taken by the federal government to provide the necessary tax incentives to attract investment.

Ajiya also argued that the task of creating an investor-friendly environment does not fall solely to the government, noting that citizens, from the immigration and customs officials who greet potential investors at ports of entry, to the driver who escorts them to hotels and meeting places, and even the media and judiciary, influence investors’ perceptions of the country through their conduct.

“There is room for everyone to ensure that investments come back to Nigeria,” he said.

The CFO listed the Gwagwalada, Kaduna and Kano independent power plants as some of the national oil company’s key power projects that investors can take advantage of.

Other members of the panel, moderated by Group Head, Energy, First Bank, Ms. Oluwatoyin Aina, included: the Chairman of the African Export-Import Bank, represented by the Bank’s Regional Chief Operating Officer, Anglophone West Africa, Mr. Eric Monchu Intong; the Executive Director, Midstream and Downstream Gas Infrastructure Fund, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Oluwole Adama; the Director General, Energy and Natural Resources, Standard Chartered, Ade Adeola; the Vice President, Investment, Africa Finance Corporation, Ms. Taiwo Okwor; and the Executive Secretary/Chief Executive Officer, Nigerian Investment Promotion Commission, represented by the Commission’s Deputy Director, Policy Advocacy, Mr. Abayomi Salami.

Olufemi O. Soneye
Corporate Communications Manager
Anonymous society
Abuja.
July 3, 2024.

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