Follow Us on Google
By Adewale Sanyaolu
Nigeria’s ability to attract fresh capital into its energy sector will depend squarely on how urgently it tackles investment risks, the Nigeria Liquefied Natural Gas (NLNG) has warned.
NLNG’s General Manager, Production, Nnamdi Anowi, disclosed this during a panel session on “De-Risking Investments in African Oil and Gas Projects” at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Anowi said investors will continue to hold back funding for oil and gas projects if Nigeria fails to create a predictable, low-risk operating environment.
His warning comes at a time the country is seeking billions of dollars in new energy investments to boost output, deepen gas utilisation and stabilise foreign exchange earnings.
“When oil and gas projects are seen as too risky, investors withdraw. Projects stall. Jobs are lost. Revenue critical to national growth disappears,” he said.
He stressed that reducing risk is no longer just a corporate priority but a national economic imperative.
For NLNG, he explained, de-risking translates to uninterrupted gas supply, honouring long-term contracts and maintaining credibility in both domestic and international markets.
Other News
“When our projects are well planned and well managed, investors have confidence, operations remain stable, and NLNG can continue contributing meaningfully to Nigeria’s economy,” he said.
According to him, the foundation of investment security lies in consistent government policies, sanctity of contracts and thorough project preparation before financial commitments are made.
These measures, he noted, lower borrowing costs and make projects more bankable — a critical factor in today’s cautious global capital environment.
Beyond policy stability, Anowi identified infrastructure reliability, skilled local manpower and the deployment of modern technology as key to reducing operational risks.
“When pipelines, processing facilities and digital systems function optimally, projects become safer, more cost-efficient and more dependable over the long term,” he said.
He urged stakeholders to shift focus towards developing proven, bankable projects over the next decade, arguing that collaborative risk management would unlock sustained investment inflows.
“Africa — and Nigeria in particular — is investable. But risks must be carefully managed, not ignored,” he added.
The renewed push for de-risking comes amid intensified competition for global energy capital, with investors increasingly prioritising stable jurisdictions offering policy clarity and predictable returns.
