A group picture of Shell leaders and executives of 9 Nigeria banks during the signing ceremony of the SNEPCo Contractor Support Fund at Shell Atlantic Towers.
Shell Nigeria Exploration and Production Company Limited has partnered with nine Nigerian banks to launch a $3 billion Contract Finance Facility aimed at improving access to funding for indigenous contractors executing projects in Nigeria’s oil and gas sector.
The financing programme, unveiled in Lagos, is designed to provide working capital and credit support in both Naira and U.S. dollars for local companies delivering contracts for SNEPCo’s operations. The initiative is expected to strengthen local content development, improve project execution and ease one of the sector’s biggest constraints—access to affordable financing.
Participating financial institutions include First Bank of Nigeria Limited, Guaranty Trust Bank, Zenith Bank Plc, Access Bank Plc, United Bank for Africa Plc, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, First City Monument Bank and Fidelity Bank Plc.
Speaking during the signing of the memorandum of understanding, SNEPCo Managing Director Ronald Adams said the financing initiative aligns with the objectives of Nigeria’s oil and gas local content policy by enabling greater value retention within the country.
He explained that the participating banks will provide capital while SNEPCo will support the facility through contract awards and payment domiciliation, reducing lending risks. Contractors, he added, will be responsible for delivering projects, creating a framework of shared accountability among all parties.
“The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention,” Adams said.
Shell Nigeria Vice President, Finance, C. J. Akwaeze, said the programme underscores Shell’s long-term commitment to expanding Nigeria’s oil and gas industry and strengthening the capabilities of indigenous service providers.
Industry stakeholders welcomed the initiative as a significant step toward addressing financing challenges that have long constrained local contractors.
The Chairman of the Petroleum Technology Association of Nigeria, Wole Ogunsanya, represented at the event by Joan Faluyi, described the facility as a gateway to resolving contractor financing bottlenecks and improving efficiency in project delivery.
Representatives of the participating banks also pledged continued support for the programme, describing it as an important collaboration that will strengthen Nigeria’s energy value chain while expanding financing opportunities for local businesses.
SNEPCo said Nigerian companies are already playing an increasingly prominent role in its operations. During the turnaround maintenance of the Bonga Floating Production Storage and Offloading vessel earlier this year, 43 wholly Nigerian companies participated, accounting for the majority of the 53 contractors involved in the exercise.
The new financing facility is expected to further enhance the technical and financial capacity of indigenous contractors, supporting more efficient execution of projects in Nigeria’s deepwater oil sector while advancing the country’s local content objectives.