Oando Plc highlights foreign lenders' reluctance in Africa

Oando Plc has reported that foreign lenders are increasingly shunning African oil and gas operators due to concerns over operating risks, policy inconsistency, and regulatory uncertainty within African markets. Mrs. Alero Balogun, the General Manager of Corporate Communications at Oando Plc, made these remarks during an industry event organized by energy journalists in Lagos.

She pointed out a significant mismatch between the type of capital required by Nigeria's energy sector and what international lenders are willing to provide. Balogun noted that oil and gas projects necessitate patient, long-term capital, which foreign lenders are currently avoiding.

She stressed the importance of Nigerians building their own financial ecosystem to facilitate self-financing. Furthermore, she indicated that until Nigeria can de-risk its operating environment and effectively mobilize local capital, access to assets for indigenous oil and gas players will remain limited.