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Bennett Oghifo

Capitas Partners, and Savannah Capital, are collaborating to design a practical capital-raising programme for marginal field operators and independent companies seeking to scale up production.

Founder and Managing Partner, Capitas Partners, Dr. Abimbola Agboluaje stated this at this year’s edition of the ‘License to Energy Series—Pitching Nigerian Gas to Global Capital.’

This platform, he said, “is dedicated to exploring one key question: What must we do to make Nigerian energy companies more capable of inspiring investor confidence—confidence strong enough to attract capital into energy projects across Nigeria?

“In short, we want to see more Nigerians producing oil and gas—not just holding licenses. That’s why this series is aptly titled From License to Energy.
“As a company, over the past 14 years, I’ve worked with people like Mr. Toyin Akinosho to help foreign investors gain clarity on the risks they face when investing in the Nigerian oil and gas sector. These risks exist at multiple levels—country, political, policy, and regulatory risks—as well as company-level risks such as technical, legal, financial, and governance issues.

“The License to Energy Series is our modest attempt to convert more investor inquiries into actual investments. While I don’t have the exact statistics, experience tells me that if 10 potential investors approach us for risk assessments, perhaps only two or three actually proceed with an investment. We need to change that. Ideally, when 10 Nigerian energy companies pitch to investors, seven or eight should receive a “yes.”
Approaching foreign investors, he said, “is often like sitting for an exam without fully understanding the syllabus or marking scheme. You don’t always know what’s required to pass—or fail—and most times, investors don’t come back to explain why they declined to fund a project. Sometimes, it’s for very small reasons.

“That’s why we’re partnering with Savannah Capital, a London-based business advisory firm that helps African corporates access global capital through effective structuring and targeted introductions to investors.”

He said the Savannah Capital’s team consists of professionals who have built their careers in the City of London—arguably the world’s leading hub for fundraising. “They understand what investors look for and can guide companies on how to prepare and position themselves to increase their chances of success.

“What’s also significant is that Savannah Capital has African ownership and interests. That matters because the conversations needed to raise capital must be honest and frank—and it helps when those conversations happen among fellow Africans who understand the context and challenges.”
He said this is a great time for such efforts because Nigerian regulators and policymakers have made meaningful progress, adding, “There’s now greater clarity, consistency, speed of execution, and predictability in the sector.

“Additionally, fiscal incentives for both investors and operators are far more generous than before. So, in many ways, the oil and gas landscape in Nigeria has changed for the better in the last two years.

“We’re also grateful to Good Governance Africa (GGA) for their support since 2024. I’m pleased that Dr. Diran Bello, Executive Director of GGA, is here to deliberate with us and share why they’ve continued to back the License to Energy initiative.”

He thanked the regulators—the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB)—for their active engagement and alignment with their goals.

“And of course, a big thank you to our distinguished industry leaders—Gbite Falade of Aradel Holdings and Mr. Segun Olujobi of Vertex Energy—for generously sharing their time, insights, and experience despite demanding schedules. Their mentorship and openness reflect true leadership in Nigeria’s energy sector.”

The Executive Director, Good Governance Africa, Dr. Diran Bello said it was both an honour and a responsibility to co-organise this dialogue for Nigeria’s oil and gas sector.

“I believe what we’re doing here has the potential to shape Nigeria’s path forward—to help us make hay while the sun shines. I’m generally an optimist, and I believe Nigeria’s prospects have never been brighter. “We are a large nation with immense opportunities in a rapidly changing world. The question before us is: How do we position ourselves to seize these opportunities?

“We began this dialogue months ago at a roundtable on regulatory reform in Nigeria’s oil and gas sector. The findings from our survey were positive—Nigeria is broadly heading in the right direction. But we must not rest on our oars.”

On Nigeria’s Macroeconomic Environment, he said, “For anyone looking to invest—especially in a foreign-exposed industry like oil and gas—the macroeconomic environment matters deeply. I believe Nigeria’s economic outlook is more stable now than it has been in the past two decades. The government’s recent reforms, while painful, have begun to restore confidence and clarity around forex policies, investment windows, and market predictability. Over time, these benefits will trickle down to households and businesses.

“Learning from Qatar’s Model

Benjamin Netanyahu recently described Israel as “Little Sparta.” Borrowing that analogy, can Nigeria become “Little Qatar”? While our scale is larger, Qatar offers a model of readiness—preparing well in advance to take full advantage of global energy opportunities. With the global slowdown in the energy transition away from hydrocarbons, Nigeria now has a second chance to shine—if we act fast.

“Global Geopolitics and New Openings: We are living in a more fragmented, multipolar world. Conflicts—from Ukraine to the Middle East—are disrupting traditional energy flows, reducing the availability of Russian oil and gas on global markets. Such disruptions create a unique window for Nigeria to fill that gap and command higher premiums. But we can’t sell what we haven’t produced.

“So, our mission here is to move the needle forward—help Nigeria finally produce and monetize its full potential in gas.”
The CEO, Aradel Holdings, Mr. Gbite Falade said, “When it comes to gas and Nigeria’s broader energy journey, progress has been slow—but understanding the context helps us appreciate why.

“Our industry has historically been oil-centric. Until the PIA came into effect about three years ago, there was no clear commercial framework for gas monetisation. The early industry players focused primarily on oil to meet their home countries’ energy security goals, while gas was considered a nuisance—something to flare off.
“Over time, limited gas gathering projects began, mostly to support power generation. But these were often executed more as CSR initiatives than sustainable business ventures. Gas suppliers were paid as little as ₦10 per thousand scf—far below cost recovery. Still, some producers continued out of national commitment.

“Today, things are beginning to shift. With improved fiscal terms and regulatory clarity, Nigeria is better positioned to transform gas from a byproduct into a central driver of industrial and economic growth.

“A franchising model was introduced for last-mile gas distribution to commercial heartlands, with four major hubs established. Lagos was designated for Gaslink, Aba for Shell Nigeria Gas, Ikorodu for Falcon, and Gasland served other industrial centers. These hubs were primarily commercially priced and catered to industrial users. However, over time, many of these industrial customers began to move toward self-generated energy solutions.
“Around 2010, the sector witnessed its first major round of gas price legislation through a pronouncement by the then Minister of Power. This brought some structure to gas pricing—defining rates for critical sectors such as power, which remained undervalued, and separate pricing for commercial users. Gradually, this provided the foundation for more bankable gas investments.

“However, the major challenge for large-scale gas penetration across Nigeria remained the inadequate transmission pipeline network. At that time, the country had only one major trunk line: the Escravos–Lagos Pipeline System. These pipelines were financed from the balance sheet of an NNPC subsidiary, which was insufficient to support the massive infrastructure expansion needed nationwide.

“As this journey progressed, the sector continued to suffer from systemic issues—particularly unpaid debts owed by power generation companies (GenCos) to upstream gas suppliers. During the buildout of NIPP power plants, gas supply often lagged behind because the entire gas-to-power value chain was not viewed as an integrated system. Power was subsidized, consumers underpaid, and GenCos could not meet their obligations to gas producers. “Consequently, gas suppliers were unwilling to make new investment decisions. This is the background we inherited. The Petroleum Industry Act (PIA) came as a turning point, introducing clearer and more stable regulatory frameworks for midstream infrastructure and gas pricing. It provided guidelines that improved system transparency, stability, and bankability—encouraging more credible long-term investments.

“More recently, the government has introduced executive directives providing clarity on dollar-denominated transactions, resource classification, and fiscal terms, especially in Production Sharing Contracts (PSCs) and deepwater operations. This regulatory maturity has fostered investor confidence.”