Oil and Gas
Providing Long-Term Funding for Participation of Local Content
Nigeria has the largest oil and gas reserves in Africa with around 37 million barrels of crude oil and over 200 trillion cubic feet of natural gas. The oil and gas market is segmented into upstream (exploration), midstream (crude transportation), and downstream (refining).
Increasing demand for natural gas has led to growing investments in natural gas infrastructure which is expected to drive the country’s oil and gas market. For instance, Nigeria is investing heavily in Liquefied Natural Gas (LNG) facilities, gas processing facilities, and gas pipeline projects through the expansion of the Bonny LNG plant by introducing the train 7 project. This is expected to increase LNG capacity by 35%, potentially making Nigeria the 3rd largest exporter of gas in the world after Qatar and Australia.
In the year 2021, the Federal Government signed the Petroleum Industry Act into law to provide legal, governance, regulatory and fiscal framework for the oil and gas sector. This will encourage private sector participation in the petroleum industry and develop host communities.
The upcoming Dangote refinery and other modular refineries currently being set up to refine petroleum products locally are also expected to position Nigeria as a regional refining hub in the coming years, create more employment opportunities and contribute significantly to GDP.
BOI has been at the forefront of providing long-term funding for modular refineries, offshore /onshore support and marine services, LPG distribution, fabrication and maintenance, etc. across the downstream segment of the petroleum industry.
We leverage technology, strategic partnerships and intermediary channels to deliver tailored intervention and low-interest loan products to Nigeria’s micro-enterprises in the informal, semi-formal and formal sectors:
In 2021, BOI disbursed N36.9 billion to 24 oil and gas projects with the potential to generate an estimated 164,205 direct and indirect jobs.
Additionally, the Bank also manages the $300 million Nigerian Content Intervention Fund (NCIF) on behalf of the Nigerian Content Development and Monitoring Board (NCDMB). The board also has a $50 million fund for Research and Development (R&D), which both parties are discussing the possibility of being managed by BOI.
We believe that supporting critical industries such as oil and gas is necessary to achieve our goal of economic transformation. Let us work with you to achieve success and sustainable growth.