Industry stakeholders at a panel session on financing Nigeria’s gas future have called for stronger project preparation, regulatory compliance and appropriate financing strategies to turn Nigeria’s gas opportunities into bankable and commercially viable projects.
The stakeholders in Nigeria’s gas industry have also identified access to appropriate financing at different stages of project development as one of the major challenges limiting the successful execution of gas projects in the country at the 4th Gas Investment Forum in Lagos.
Speaking during a panel session on financing Nigeria’s gas future, industry panelists said although Nigeria has significant opportunities in the gas sector, developers must do more to transform identified opportunities into bankable projects capable of attracting investors and strategic partners.
The discussion focused on the transition from identifying gas opportunities to developing commercially viable projects that can secure adequate capital and deliver sustainable returns.
One of the panelists, who spoke from the perspective of a project developer, said the major challenge was often not simply accessing finance but securing the right type of financing at the right stage of project development.
He explained that early-stage projects generally require equity rather than debt financing because developers need capital to undertake activities such as feasibility studies, regulatory processes and early partnerships with engineering, procurement and construction companies.
According to him, developers seeking equity investment must demonstrate the commercial potential of their projects and provide investors with clear answers to three fundamental questions: whether the opportunity is real, whether the business can compete successfully and whether the investment offers an attractive return.
He said demonstrating these factors is critical to convincing investors to provide the equity required to move a project from an idea to a sufficiently developed and bankable proposition.
The panel also highlighted the importance of regulatory compliance and strong corporate governance in attracting both domestic and international investors.
A legal expert on the panel said project developers must properly position their businesses for investment by ensuring that all necessary permits and regulatory requirements were in place.
He stressed that a credible regulatory and governance framework gives investors greater confidence that a project is legitimate, properly structured and capable of accessing financing.
The experts further emphasised the need for developers to balance commercial opportunities, customer demand and financing requirements throughout the project development cycle.
Another speaker said developers must adopt a disciplined approach to project development, beginning with identifying and assessing opportunities before progressing to concept selection, design and investment decisions.
He explained that developers should establish clear decision points at different stages of a project to continuously review assumptions and determine whether the project remains aligned with market realities.
According to him, financing considerations must be closely linked to the availability of a viable market and credible customer uptake.
He noted that securing financing without establishing sufficient market demand could expose projects to significant commercial risks.
The panel therefore stressed that successful gas projects require more than identifying Nigeria’s abundant gas opportunities. Developers must demonstrate regulatory readiness, sound governance, commercial viability, market demand and a clear financing strategy capable of taking the project through its various stages of development.
The discussion underscored the importance of aligning investors, developers, regulators, customers and strategic partners to unlock the capital required to expand Nigeria’s gas industry.
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