KEY POINTS
• NUPRC calls for more financing for Nigeria’s oil firms.
• Bank of America pledges to explore support opportunities.
• Funding gaps continue to hinder local oil producers.
The Nigerian Upstream Petroleum Regulatory Commission has urged the Bank of America to expand project financing support for local oil and gas operators struggling to access capital.
NUPRC Chief Executive Gbenga Komolafe made the appeal during a meeting with Chuba Ezenwa, the bank’s Managing Director and Head of Investment Banking for Sub-Saharan Africa, held on Tuesday in Abuja. The discussion focused on how international financial institutions can help indigenous players overcome funding constraints in the energy sector.
Funding remains key for Nigeria’s oil firms
In a statement by the Commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, Komolafe described inadequate funding as one of the biggest challenges facing domestic oil producers despite Nigeria’s vast hydrocarbon resources. He said that while the country continues to record gains in crude production, many local operators remain hampered by limited access to financing.
Komolafe explained that the effort aligns with the Petroleum Industry Act of 2021, which directs the Commission to promote an enabling environment for investment and strengthen Nigerian content development in the petroleum industry.
“Nigeria is richly endowed with hydrocarbons, and we are committed to optimising production. However, funding is critical to our success,” he said. “We are therefore exploring areas of alignment with the Bank of America to improve access to capital for indigenous firms.”
Bank of America signals interest in collaboration
According to Vanguard, Ezenwa praised the NUPRC’s recent reforms, noting that improved transparency and stability have helped rebuild investor confidence in the upstream segment. He said the Bank of America remains open to exploring opportunities that would strengthen Nigeria’s oil production base and support growth among domestic players.
“I am encouraged by the reforms driven by the Commission Chief Executive and the positive results in oil production,” Ezenwa said. “The Bank of America will continue to explore opportunities to provide support.”
Komolafe reaffirmed that attracting new financing remains vital to sustaining Nigeria’s oil output and ensuring that indigenous operators benefit more directly from the country’s petroleum wealth.
