Nigerian Government Encourages Oil and Gas Firms to Raise Funds Through Capital Market

The Nigerian Federal Government has called upon oil and gas companies operating in the country to utilize the capital market for raising funds and expanding their investments. This message was conveyed by the Minister of State for Petroleum Resources, Heineken Lokpobiri, during an event celebrating Seplat Energy's 10-year dual listing on the Nigerian Exchange Limited (NGX) and the London Stock Exchange.

Lokpobiri assured the industry that the government remains committed to creating an enabling environment and regulatory framework for companies to operate more effectively, in line with the provisions of the Petroleum Industry Act (PIA). He emphasized the importance of developing homegrown solutions to address Nigeria's energy challenges, including innovative ways of raising capital through the capital market.

Seplat Energy's CEO, Roger Brown, highlighted the company's achievements over the past decade, including generating $1.7 billion in free cash flow, investing over $57 million in community projects, and returning $575 million in dividends to shareholders. The NGX Group Chairman, Alhaji (Dr) Umaru Kwairanga, commended Seplat's growth into a leading indigenous energy company and the significant role played by the capital market in facilitating its funding.

Why this matters: The Nigerian government's call for oil and gas companies to utilize the capital market underscores the importance of alternative funding sources in driving growth and investment in the energy sector. This move could potentially attract more domestic and foreign investment, boosting the industry's resilience and competitiveness.

The event also served as a platform to showcase Seplat Energy's success story as a leading indigenous energy company. "Seplat Energy's performance over the past 10 years, including generating $1.7 billion in free cash flow, investing over $57 million in community projects, and returning $575 million in dividends, is a testament to the company's strong fundamentals and the potential of the Nigerian energy sector," said Roger Brown, Seplat Energy's CEO.

Key Takeaways

• FG urges oil/gas firms to leverage capital market for funding.
• FG committed to enabling environment for companies under PIA.
• Seplat Energy generated $1.7B in free cash flow over 10 years.
• Seplat invested $57M in community projects and paid $575M in dividends.
• Capital market played key role in Seplat's growth as leading indigenous energy firm.