Financial Energy Review
…….Nigeria Leads the Way in Africa’s Energy Growth…….
……by Ben Ndubuwa…..
At the ongoing 9th edition of the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has said that the African Energy Bank is a Game Changer pointing out that the bank is set to take off this quarter, as a crucial initiative to address Africa’s energy financing challenges. “Funding remains a major issue, and that’s why African petroleum ministers have agreed on establishing the African Energy Bank. This will be a game changer for the industry,” he asserted.
He highlighted Nigeria’s leadership in the African oil and gas industry
and emphasized the nation’s progress in local capacity development and investment as well as the climate reforms, urging other African countries to learn from Nigeria’s successes and challenges.
Nigeria’s Growing Local Capacity
Addressing a gathering of key industry stakeholders, Lokpobiri underscored Nigeria’s strides in developing local companies in the petroleum sector. He noted that a law passed 16 years ago had significantly contributed to local capacity growth, enabling Nigerian companies to acquire and manage assets previously owned by international oil companies (IOCs).
“Today, you can see local companies acquiring assets from IOCs and managing them successfully because they have grown to a sustainable level,” he stated. “A lot of the services, particularly onshore, are now being handled by indigenous companies, leaving the deep offshore sector for the major players.”
He expressed satisfaction that Africa had gathered at the conference to learn from Nigeria’s experience, adding, “We have developed enormous capacity, and I urged attendees to learn from our mistakes. Coexistence with multinational service companies is key so that every player finds their space. At the end of the day, both Nigeria and Africa will benefit.”
Addressing Energy Poverty Through Investment
Lokpobiri emphasized that Africa’s major challenge remains energy poverty and that investment is crucial to addressing this issue. “There is no way we can tackle our energy and poverty issues without attracting investment,” he said. “That’s why this annual event is vital. Everyone attending will benefit from the shared knowledge of participants.”
He acknowledged that neighboring countries were also securing significant investment in the sector and stressed the need for Nigeria to retain a fair share of such projects. “How do we ensure that these investments stay here? We must create an environment that attracts and retains them,” he added.
Nigeria’s Competitive Investment Climate
Highlighting the government’s commitment to making Nigeria a more attractive investment destination, Lokpobiri stated, “Capital is blind. If you do not create a competitive environment, investments will go elsewhere. But under President Bola Tinubu’s leadership, Nigeria has introduced fiscal and contractual reforms that have made our investment climate more favorable than others.”
He assured investors that Nigeria remains open for business and that the government is engaging industry players to foster more investments. “We are constantly in touch with investors, and very soon, there will be significant announcements regarding new investments in the sector,” he revealed.
Lokpobiri concluded his address by reiterating Nigeria’s leadership role in Africa’s energy sector. “We will remain leaders in Africa’s oil and gas industry. With continued collaboration, investment, and knowledge sharing, we can ensure a prosperous energy future for the continent.”
The SAIPEC conference, organized by PETAN (Petroleum Technology Association of Nigeria), continues to provide a platform for African oil and gas stakeholders to exchange insights and strategies for the sector’s growth.
