NLNG's Falade Advocates for Stable Policies in Oil Sector

Adeleye Falade, the managing director and chief executive officer of Nigeria LNG Limited (NLNG), stated that Nigeria's oil and gas industry will experience accelerated growth if the policy direction remains stable, providing investors with the necessary assurances. Speaking at the 32nd Nigerian Economic Summit in Abuja, Falade addressed the need for greater certainty in the industry, noting that Nigeria's natural resources alone cannot attract the required capital.

He highlighted that investors need confidence in stable contractual terms, reliable delivery of production, and the ability of operators to meet obligations. Falade cited the $3 billion in external financing secured for NLNG's Train 7 project as evidence of the importance of these conditions.

He explained that substantial upfront capital is required for investments, with recovery periods of 20 to 30 years, depending on the stability of the investment framework. Falade pointed out that the financing of Train 7, secured in 2020 during the COVID-19 pandemic, exemplifies how credible investment propositions can attract capital even amid uncertainty.