Shell Nigeria Exploration and Production Company Limited (SNEPCo) has joined forces with nine major Nigerian banks to unveil a $3 billion contract finance facility aimed at easing funding challenges faced by indigenous oil and gas contractors. The initiative, announced in Lagos on Thursday, is expected to improve access to credit for local companies executing projects for Shell, while supporting growth and efficiency across Nigeria’s energy industry.
The financing scheme will provide contractors with access to loans in both naira and United States dollars, helping them secure the working capital needed to deliver projects on schedule. Participating financial institutions include First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank, and Fidelity Bank. Industry stakeholders view the partnership as a significant step toward removing one of the biggest barriers to local participation in the oil and gas sector.
Speaking during the signing of the Memorandum of Understanding, SNEPCo Managing Director Ronald Adams said the arrangement supports the goals of the Nigerian Oil and Gas Industry Content Development Act by encouraging greater value retention within the country. He explained that while the banks provide capital and financial discipline, Shell contributes contracts and secured payment structures that reduce lending risks, creating a framework that benefits all parties involved.
Shell Nigeria’s Vice President of Finance, CJ Akwaeze, noted that the initiative reflects the company’s commitment to supporting the long-term growth of Nigeria’s oil and gas industry. He emphasized that access to financing remains critical for local contractors seeking to expand their capabilities and compete effectively in large-scale energy projects. The scheme is expected to strengthen the financial capacity of indigenous firms and improve overall project delivery standards.
Industry leaders have welcomed the development, describing it as a game-changer for Nigerian contractors. Petroleum Technology Association of Nigeria Chairman, Wole Ogunsanya, represented by Dr. Joan Faluyi, said the facility could unlock long-standing financing challenges and improve contract execution across the sector. SNEPCo also highlighted the growing role of local companies in its operations, revealing that 43 of the 53 firms involved in the recent maintenance exercise at the Bonga Floating Production Storage and Offloading vessel were wholly Nigerian-owned. The company believes the new financing facility will further empower local businesses and deepen Nigerian participation in the country’s premier deepwater oil operations.
source: punch
