Ever since the Petroleum Industry Act (PIA) came into existence to strengthen administrative governance in the oil and gas industry, stakeholders have embraced the Act.
One of the major stakeholders of the energy sector is the financial institutions that have played vital roles in injecting funds to the industry.
Nigeria’s pioneer financial institution, First Bank of Nigeria (FBN) has financed numerous projects in the energy sector.
Speaking at the ongoing Oil Trading and Logistics (OTL), Africa Downstream Week, Oluwatoyin Aina, Head Energy, Downstream and International Oil Trading (First Bank Plc), revealed that the bank unlike other financial institutions, provided funding for infrastructural development including the NLNG Train 7 project.
She disclosed that the newly commissioned Pinnacle offshore subsea petroleum terminal and Dangote refinery were parts of the projects the bank funded.
However, she cautioned that no commercial bank will be interested in funding a Green Field project except an equity is raised which attract lower interest rate. Stakeholders have to be involved in different transactions without paying attention to only one.
The First Bank Downstream Head advised stakeholders on a good effective corporate governance structure to access funds.
Carbon credit also assists projects to be bankable with neutrality in the process. There has to be sanctity of contract with focus on project that attract net zero emission. The international fund can only attract projects that are environmentally friendly as they would be thoroughly assessed to ensure standard.
Aina advised oil and gas companies to create enabling environment, accessible capital pool, skill acquisition and human capital development. Packaging of documents to attract fund.
Thus: “Oil and gas producing continues in Africa, must focus on the process of creating enabling environment through policies, improving accessibility to available capital pools and attracting the right skills.”
Aina opined that First Bank being in the forefront will continue to support the energy-based projects.
Source: Energy Focus Report