Stakeholders Seek Measures To Close Nigeria’s $25bn Estimated Oil, Gas Financing Gap

Key stakeholders in Nigeria’s oil and gas sector have called for concerted action to address structural problems as well as financing challenges that have limited capacity to advance investment in the country’s oil industry.

They raised concerns that Nigeria’s oil and gas industry faces an estimated annual financing gap of approximately $25 billion, making collaboration between local and international financial institutions increasingly important.

This was a major talking point when ProvidusUnity Bank, in partnership with US-based Regions Bank, convened a roundtable to expand access to financing for Nigeria’s oil and gas industry, reinforcing both institutions’ commitment to supporting growth across the country’s energy value chain.

The roundtable was designed to serve as a gateway to stronger partnerships between Nigeria and the United States across strategic sectors, including energy, agriculture, and mining.

Themed: “Financing Growth Across Nigeria’s Oil & Gas Value Chain,” the round table held in Lagos brought together industry leaders, financial institutions, policymakers, and energy stakeholders to explore innovative financing solutions for projects across the sector.

Head of Global Trade and Structured Finance at ProvidusUnity Bank and convener of the roundtable, Dr Biodun Ariyo, explained that the initiative was designed to deepen conversations around financing, trade facilitation, and investment within Nigeria’s energy sector.

Beyond deepening meaningful dialogue, the platform sought to connect industry stakeholders with the right financing partners and structures required to accelerate growth across the oil and gas value chain, he said.

Nigeria’s oil and gas industry faces an estimated annual financing gap of approximately $25 billion, making collaboration between local and international financial institutions increasingly important.

The roundtable was designed to serve as a gateway to stronger partnerships between Nigeria and the United States across strategic sectors, including energy, agriculture, and mining.

By deepening collaboration in these areas, both countries can mobilise capital more efficiently, unlock greater private investment, and accelerate Nigeria’s economic transformation, participants at the forum said.

Representing Regions Bank, its Executive Director for International Trade Finance, Thomas Matthias, reaffirmed the institution’s commitment to expanding its presence in Africa through strategic partnerships with credible local financial institutions.

“Africa has been overlooked for far too long, and that must change. Our experience financing transactions in Nigeria has given us the confidence to deepen our engagement in the market.

“We believe Nigeria is well positioned to play a much larger role in Africa’s energy future, and we are committed to partnering with ProvidusUnity Bank to unlock that potential,” he added.

He noted that evolving global energy dynamics present significant opportunities for Nigeria to increase production, attract investment, and strengthen its position as a leading energy producer on the continent.

The event attracted leading operators across Nigeria’s oil and gas industry, alongside representatives from key public and private sector institutions, including the Nigerian National Petroleum Company Limited (NNPC Ltd.).

“A key highlight of the roundtable was a panel discussion that examined innovative financing structures capable of accelerating investment across Nigeria’s oil and gas value chain.

“The panel featured Cem Hacioglu, President & CEO, West Africa LNG Group; Conal Duffy, Practice Leader –  Political Risk at Alliant Insurance Services; Dr. Vernon Darko, Founder & CEO, EQUIPXP, LC; and Basim Nasr, Government Contractor and Business Solutions Executive, whose discussions focused on the role of insurance in mitigating risks associated with cross-border transactions, financing models for marginal and idle assets, strategies for gas monetisation, and the importance of long-term liquidity in supporting capital-intensive energy projects.

Participants also explored opportunities to identify more bankable projects in Nigeria and across Africa by leveraging the combined capabilities of ProvidusUnity Bank and Regions Bank to provide tailored financing solutions for operators throughout the energy ecosystem.

As Nigeria seeks to unlock greater investment across its energy sector, ProvidusUnity Bank stated that it would continue to build strategic partnerships that improve access to long-term capital and support sustainable economic development