Jun 10, 2025
Updates
Finance
At the 24th Nigerian Oil and Gas (NOG) Energy Week in Abuja, industry leaders, government officials and financiers convened to chart the future of Nigeria’s energy financing landscape. We witnessed a meaningful strategic shift: energy financing is evolving from transactional investments into sustainable, climate aligned capital deployment.
Engr Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, emphasized that the Petroleum Industry Act and supportive Executive Orders are catalyzing reforms that go beyond policy; they are unlocking real capital. Over 16 billion dollars in new upstream investment and the initiation of the Project One Million Barrels campaign (targeting daily production of 2.5 million barrels by 2026) are proof positive of progress.
Several sessions on financing models stood out:
Blended finance instruments, combining public concessional capital with private funds, emerged as a compelling template for both fossil and gas sector growth.
Institutional investment was front and center: development finance institutions are structuring upstream debt to crowd in commercial banks and pension funds.
Local content funding, especially through the NCDMB, was spotlighted. As noted in multiple panels, structured funds are now being deployed to support indigenous oil and gas service providers.
This strategic alignment between financial flow and policy reform shows that Nigeria is not only ready to borrow but it is primed to borrow smart.
Key Strategic Highlights
1. Decarbonization and Emissions Tracking
Komolafe introduced an upstream decarbonization template, pledging to eliminate routine gas flaring by 2030 and reduce methane emissions by 60 percent by 2031. Nigeria also commemorated March 18 as Upstream Decarbonization Day, signalling commitment to climate aligned project finance.
2. Local Content as Investment Anchor
NCDMB’s presentations underlined structured financial mechanisms for local contractors. Panelists welcomed the foundation of dedicated funds to support indigenous capacity building in equipment provisioning, logistics and maintenance.
3. New Infrastructure Platforms
High‑profile partnerships were announced, signalling fresh investment in midstream infrastructure and gas transmission corridors. These projects are being structured with toll‑based revenue models and blended finance to de‑risk long‑term exposure.
“We are entering a new chapter where Nigeria’s energy financing is not just about capital deployment, it is about deploying capital with strategic intent. We must channel investments to deliver energy security, economic inclusion, and environmental sustainability at scale.” – Francis Enakele (MD)
To build on the momentum from NOG, we recommend:
Designing flagship blended finance facilities that combine concessional funding, private equity and institutional bonds, targeted at both upstream growth and clean gas integration.
Ensuring sustainability performance triggers (e.g., reduced flaring, local content metrics, emissions targets) are baked into finance agreements.
Scaling local content finance windows that support SMEs in downstream services, equipment leasing and logistics is key to creating a domestic value chain.
Catalyzing early‑stage capital through guarantee and credit enhancement, to reduce perceived risks for commercial financiers entering the energy sector.
NOG Energy Week demonstrated that Nigeria’s energy sector is evolving from fragmented project funding into strategic capital architecture; focused on resilience, value chain development, and low carbon transition. For energy leaders at TTE, now is the time to position ourselves: as facilitators of smart finance, supporters of national strategy, and catalysts for sustainable energy outcomes.
