The Nigerian energy industry is rich with huge investment opportunities, Umar Ajiya, the Chief Financial Officer of NNPC Limited said during investors call in Abuja.
The CFO of the national oil company listed major projects like the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, the $25bn Nigeria-Morocco gas pipeline, and other numerous financing opportunities as areas for investors to explore.
Ajiya made the remark while delivering his opening keynote address at the 3rd International Conference on Hydrocarbon Science & Technology (ICHST).
The CFO spoke on ‘Investment and Financing in the Energy Transition: Evolving Landscape of Investment, Financing in the Oil and Gas Industry, and Opportunities for Sustainable and Socially Responsible Investment,’ according to a statement shared by the NNPC on microblogging site, X, on Tuesday.
Since the push for energy transition, the Nigerian government has taken giant steps to explore the country’s over 208 trillion cubic feet of proven gas reserves as a transition to net zero by 2060.
Part of the project it undertook was the expansion of the AKK project which is a 614km-long gas pipeline being developed by the NNPCL as part of Nigeria’s Gas Master Plan to transport up to 3,500 million cubic feet (mcf) of gas a day from various gas gathering projects in southern Nigeria to the North.
The project is worth over $2.8bn and being financed through 85 per cent debt and 15 per cent equity.
It also kickstarted the $25bn Nigeria-Morocco gas pipeline which would enhance the monetisation of natural gas and also offer new alternative export routes to Europe.
The government believes that these projects, among others would help it fund a just energy transition in a manner that would reduce the energy poverty faced by millions of Nigerians.
However, commitments focusing on advancing equitable access to funding is shrinking as international financial institutions and major oil and gas companies are diversifying their investment portfolios towards renewables.
Represented by Charles Omowa, Head of Finance and Investment at NNPC Limited, Ajiya highlighted the role of sustainable investments in addressing environmental and social issues, thereby making Nigeria more resilient.
The CFO said that the Petroleum Industry Act 2021 has reinforced the discharge of responsible operations in the sector.
He said, “Financial institutions will also play a key role through green financing and policy advocacy, which require collaboration with governments.
“The landscape of the Nigerian Energy Industry is rich with opportunities, particularly in major gas projects such as the AKK and the Nigeria-Morocco Pipeline. NNPC Limited has also signed Memorandums of Understanding (MoUs) for biofuel refineries and is investing in renewable energy projects.”
In his investors’ call, Ajiya further said that the Petroleum Industry Act has provided succour for the capital-intensive sector through the facilitating and raising of substantial funds in support of its projects and businesses.