How To Access Fund For Energy Sector Financing –Expert

A financial expert, Mr Henry Otaigbe has listed measures of accessing fund and effectively financing the Nigerian energy sector to leverage on the development of other key sectors of the economy.

Presenting his paper titled, “Financing the Energy Sector in Nigeria: Challenges and Development”, at the recently concluded Port Harcourt International Oil and Gas Conference, Otaigbe identified the sector as the basis of socio-political development of the country.

Otaigbe, who is the regional manager, South and East of Standard Chartered Bank, said the abundant energy potential in Nigeria has remained a source of attraction to the international community.

According to him, the interest of the international community in Nigeria’s energy potential has also attracted funds from the developed world and international financial organisations.

By this development, he said, the first step to achieve success in the hunt for finance, is identifying the various stages of development in the sector and its corresponding financial need.

He also harped on the importance of seeking professional advise in fund sourcing, noting that fund sources are exposed to various risk factors such as interest and exchange rates.

The financial expert also identified a fundamental contradiction in Nigeria’s investment potentials, which borders on the fact that while existing players are not able to get desired finance for business, some investors and financiers appear unable to get worthy investment or project to fund.

Another hindrance to effective financing of the Nigerian energy sector, according to the expert, is that government, as owner of key infrastructures such as power, has proven to be inefficient, thereby triggering investors’ concerns about funding and facility management.

While emphasizing on feasibility as a yardstick for project proposal, he called for government intervention by way of policy incentives and creation of conducive business environment as a means of reducing the business risks.

Beemene Taneh