Financing oil and gas projects in Nigeria
Oil and gas is a major source of energy worldwide. Therefore its significance for Nigeria as a major producer cannot be understated. Notwithstanding the huge revenue derived from oil and gas, its contribution to the Gross Domestic Product (GDP) is minimal. This can be ascribed to the fact that there has been minimal indigenous participation in oil and gas projects as this has often been undertaken by the International Oil Companies (IOCs). To address this, the Federal Government awarded marginal fields and oil blocks to independent indigenous oil companies and enacted the Nigerian Oil and Gas Industry Content Development Act in 2010. This has been of great benefit to indigenous participation. However, these indigenous companies often encounter a major problem in accessing finance for their projects. This dissertation examines the challenges to financing faced by the independent indigenous oil companies and how project financing will be the best means of financing a project by these companies.
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