March 10, 2017, Lagos, Nigeria – Mr. Gbenga Adetoro, Senior Vice President, Energy, at Capital Alliance Nigeria, today participated in a panel discussion themed the “Role of private equity in shoring up local participation in Oil & Gas,” during the 5th Annual Energy Finance Forum (EFF) of the Centre for Petroleum Information (CPI).
In his opening remarks, Gbenga highlighted the important role private equity (PE) can play in providing not only long-term equity capital, but also institutional support, to help create indigenous champions in the upstream oil sector. According to him, the Nigerian upstream sector has a rich set of lower-risk upstream assets with significant capital requirements and debt capacity constraints, which presents a unique opportunity for PE, as the equity financing for these assets tend to be fairly sizable in an environment where there is a paucity of funds.
He also disclosed the immense opportunities for indigenous participation in the Oil Fields Services (OFS) space following the passing of the Nigerian Content Development Act in 2010 and stated that PE can provide the necessary equity financing and enabling platforms to catalyse consolidation in the OFS space.
He concluded by indicating that ACA continues to see attractive opportunities to back indigenous players across the oil & gas value chain despite the challenges in the Nigerian oil & gas industry and offered practical ideas on how entrepreneurs can attract private equity funding despite economic headwinds.