Nigeria’s oil and gas sector is poised for a wave of consolidation among indigenous operators, according to Engr Tony Attah, Managing Director of Renaissance Africa Energy Company Limited.
Speaking at the Nigerian Content Academy Lecture on Thursday, Attah forecast that within the next decade, five principal Nigerian independent oil companies will emerge through strategic mergers and consortiums.
Delivering a lecture titled "Finding Funds for Effective and Efficient Local Content Initiatives – IPPG Perspective," Attah stressed the growing strength of local operators who have successfully acquired and managed assets divested by international oil companies (IOCs).
He asserted that independents now account for more than half of Nigeria’s crude oil production, and that collaboration will define the industry’s future.
Citing Renaissance Energy’s own formation through a consortium of four Nigerian firms and one international partner, Attah said the model demonstrated the value of ambition, tenacity and cooperation.
He urged other independents to follow suit, warning that weak governance and fragile balance sheets would deter financing.
Attah outlined a range of funding instruments available to African energy players, including capital market listings, private equity, Eurobonds, joint ventures, IOC carry arrangements, prepayment financing and bank facilities.
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He underlined the importance of "bankability criteria" such as proven reserves, transparency, stable production, hedging strategies and strong operational track records.
He also commended the establishment of the African Energy Bank by APPO and Afreximbank, supported by Nigeria’s Content Development and Monitoring Board, but argued that more initiatives of similar scale were needed to meet Africa’s financing requirements.
"Local content in Nigeria is no longer a policy aspiration; it is a capital execution challenge," Attah declared.
He urged operators to adopt his ABC creed, "Ambition, Belief and Courage" to unlock funding opportunities.
During the Q&A session, Attah advised independents to honour obligations to vendors, warning that "your business will not grow if you keep owing."
He also addressed issues about the ageing workforce in the sector, attributing the trend to younger generations gravitating towards fields such as artificial intelligence and robotics.
The lecture drew nearly 200 participants online (zoom), with Director, Corporate Services, NCDMB, Dr Abdulmalik Halilu praising Attah’s insights as a roadmap for indigenous operators seeking growth.