NNPC Makes Case for Development of Institutions to Finance Energy Projects

The Nigerian National Petroleum Company Limited (NNPC Ltd) has called for the establishment of more local institutions in Nigeria and Africa with the capacity to fund energy projects, aiming to tackle energy poverty.

This call was made by Mr. Umar Ajiya, the Chief Financial Officer of NNPC Ltd, at the ongoing 23rd Nigeria Oil Gas Conference and Exhibition (NOG Energy Week) in Abuja on Wednesday. Speaking at a panel session themed “Accelerating Investment, Enabling Industry Growth, Meeting Energy Demand,” Ajiya argued that, given the reluctance of global financial institutions to finance oil and gas projects due to environmental concerns, it is essential to develop more institutions like Afreximbank and the proposed Africa Energy Bank to finance energy infrastructure projects.

He emphasized that the key to resolving the paradox of endemic energy poverty amidst abundant energy resources in Nigeria is to create an enabling environment to aggressively attract investment into the energy sector. Ajiya highlighted the passage of the Petroleum Industry Act (PIA) and the recent enactment of three Executive Orders in the sector by the President as practical steps by the Federal Government to provide the fiscal incentives needed to attract investment.

Ajiya also noted that creating an investor-friendly environment is not solely the government’s responsibility. He stressed that citizens, from Immigration and Customs Officers who welcome potential investors at entry ports to drivers, media, and the judiciary, influence investors’ perceptions of the country through their conduct.

“There’s room for everyone to make sure that investment comes back to Nigeria,” he declared.

The CFO identified Gwagwalada, Kaduna, and Kano Independent Power Plants as key energy projects in the national oil company’s portfolio that investors can take advantage of.

The panel, moderated by the Group Head, Energy, First Bank, Ms. Oluwatoyin Aina, included:

• The President, African Export-Import Bank, represented by the bank’s Regional Chief Operating Officer, Anglophone West Africa, Mr. Eric Monchu Intong
• Executive Director, Midstream and Downstream Gas Infrastructure Fund, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Oluwole Adama
• Managing Director, Energy and Natural Resources, Standard Chartered, Ade Adeola
• Vice President, Investment, Africa Finance Corporation, Ms. Taiwo Okwor
• Executive Secretary/Chief Executive Officer, Nigerian Investment Promotion Commission, represented by the Commission’s Deputy Director, Policy Advocacy, Mr. Abayomi Salami.