The Nation Newspaper

Tag: investment

  • Nigeria’s retail sector records N205b investment in two years

    It has been reported that the Nigerian formal retail industry has recorded investment worth over N205.4 billion in the last two years.

    Investigations show that from buying and selling at open-air markets (in both cities and rural areas), Nigerians are increasingly patronising convenience stores, supermarkets and online shops.

    According to a recent survey by Phillips Consulting, the fast moving consumer goods (FMCG) sector is a huge driver of the wholesale and retail markets, and it is characterised by low-cost items that usually have a short shelf-life.

    Similarly, the survey said online shopping is becoming quite popular in Nigeria, due to its relative convenience and the reasonable prices of goods and services available online. Citing a recent survey, the report said online shopping sector grew from N49.9 billion to N62.4 billion between 2010 and 2011, and from N62.4 billion to N78 billion between 2011 and 2012, representing a 25 percent increase in each period.

     

  • Europe’s investment banks resilient in retreat

    Europe’s investment banks are giving Wall Street a run for its money despite shrinking their trading arms more aggressively than United States rivals.

    Buoyant equity markets and a surge in corporate debt issues have caused a bigger-than-expected jump in investment bank fees in Europe helping Deutsche Bank, UBS, Credit Suisse, Barclays, BNP Paribas and Societe Generale outperform their U.S. peers in the second quarter.

    The six European lenders saw revenues from trading and selling debt grow five per cent on average compared to a nine per cent combined drop at Goldman Sachs, JP Morgan, Morgan Stanley, Bank of America and Citigroup.

    Part of the outperformance was because in the previous year European banks were hit harder by the U.S. Federal Reserve’s warning that it would gradually reduce its purchase of bonds.

    But a surge in debt issuance by European companies this June, when European Central Bank President Mario Draghi cut interest rates to record lows, has also helped.

    Grim warnings from the banks themselves had investors expecting falls in fixed-incomes revenue of up to a quarter in the April-June period but the reality proved less bleak after an upturn in activity at the tail end of the quarter.

    “Expectations were it (Q2 performance) was going to be really, really bad, and in the end it just turned out to be quite bad,” said David Moss, head of European equities at F&C Investments.

    Faced with new regulations in the wake of the financial crisis that made debt trading more expensive, European investment banks have for the most part renounced their ambitions to be global players and cut their fixed-income divisions more aggressively than U.S. counterparts.

    The retrenchment has in part been fuelled by public anger over their role in the financial crisis, prompting European politicians to impose tougher pay restrictions on traders and encouraging banks in the region to focus more on wealth management or retail and commercial banking.

    The scale-back in investment banking means U.S. banks are expected to continue to dominate rankings, particularly if a rise in interest rates prompts a rebound in fixed income, with increased volatility and rising yield providing trading opportunities.

  • ‘Delta is safe for foreign investment, tourists’

    ‘Delta is safe for foreign investment, tourists’

    A former Delta State Commissioner for Information and Senior Special Assistant to Governor Emmanuel Uduaghan on Foreign Affairs, Mr Oma Djebah, has said the state is safe for diplomats and foreign investors.

    Djebah spoke when the Political Secretary and Senior Political Adviser at the British High Commission, Abuja, Edward Dunn and Osaro Odemwingie visited the state at the weekend.

    He said: “Look at Seplat Nigeria that is in Sapele, people are talking about the security situation in Warri and its environs but Seplat is operating here and they have upgraded in their production capacity. Today, they are producing up to 62,000 barrels of oil per day, which is a huge success.

    “Look at the teaching hospital in Oghara, it is a huge success too because it is building the human capital development of the people. Look at what we are doing in the health sector. And all these have effect in crime and criminality. If you are healthy and strong, you will not have time for crime. If you are engaged you will not want to go and do crime.”

    Djebah noted that the state was not different from the situation in the United Kingdom during the Irish Resistance Army (IRA) era, adding that that the violence did not stop  foreign investors from setting up businesses in the UK.

    He urged the international community to be considerate when issuing travel warning and advice to visitors to the state and the Niger Delta.

    The team visited the Sapele office of indigenous oil firm, Seplat Nigeria Limited, where the management told them it had quadrupled production from facilities it acquired from Shell Petroleum Development Company (SPDC) within four years.

    Seplat’s Head of Community Affairs, Mr Godwin Obiuwvbi, told the visitors that the company increased production from the 14,000bpd it inherited in 2010 to 62,000bpd from OMLs 4, 38 and 41, adding that it is already targeting 100,000bpd before 2017.

    He said: “From four producing communities in 2010, we have increased to 10 and by 2017, we hope to reach 100,000pbd. This year we should get to 72,000 from there we will take it to 85,000 and in the next two, three years we will get 100,000bpd.”

    Obiuwevbi added that the three OMLs hold up to 500 million barrels, adding that the company, which recently listed on the London Stock Exchange, planned on acquiring additional oil wells and also revealed that Seplat is planning a massive investment in gas at the company Oben field in Edo state and LTF and green field development programmes in Amukpe, Sapele.

    Obiuwevbi, who was accompanied by the company’s Security Manager, Mr William Akolo, a former employee of SPDC, Tony Owumi and other top staff of the firm, said the company was bullish because since it commenced operation in 2010, it had experience “no significant disruption in operation”, adding that crude oil theft had also been drastically reduced.

    He said the robust Global Memorandum of Understanding (GMoU) with host communities has complimented their internal security and build confidence across board, adding, “There were four MoU and a trust fund of N250 million down payments gave communities a stake and helped build confidence and trust.”

    The Commissioner for Oil and Gas, Mr Mofe Pirah, debunked the reasons given by SPDC for divesting from the facilities: “They said Delta State was not secured, you cannot do business in Delta State.”

    Pirah said the team was interested in knowing how Seplat managed to achieve so much and better SPDC in spite of the allegation of insecurity in the region, adding that it showed that there is something the local firm was doing that Shell did not do.

    Speaking with reporters after the two-day visit at Osubi Airport on his way to Abuja, Dunn expressed satisfaction with Uduaghan’s development drive, particularly in the education and health sector, where the governor had investment hugely in the past years.

    Odemwingie noted that the projects were first class and urged Deltans to support the government’s efforts by maintaining them.

    Djebah described  Uduaghan’s vision of Delta Beyond Oil as rightwards to keeping a lasting legacy for posterity in the state, stressing that the citizenries’ support is important to achieving the dream.

  • Delay in PIB’s passage hurts $100b investment

    Delay in PIB’s passage hurts $100b investment

    Delay in the passage of the Petroleum Industry Bill (PIB) by the National Assembly has put over $100 billion investment in the oil sector in abeyance, Managing Director, Financial Derivatives Company (FDC), Bismarck Rewane, has said.

    The PIB seeks to establish a legal, fiscal and regulatory framework for the petroleum industry to rejuvenate the sector.

    In a report released yesterday, Rewane said delays in investment are also encouraged by market uncertainties due to the unfriendly business environment.

    “Investors in the economy are not new to these uncertainties. In the petroleum sector about $100 billion worth of investments is being delayed due to the delayed passage of Petroleum Industry Bill (PIB) according to the international oil companies (IOCs),” he said.

    He described vandalism and theft of telecom infrastructure as sabotage.

    It will be recalled that the Nigerian Communications Commission (NCC) earlier indicated that it recorded about 1, 200 fibre cuts in  a few months.

    Apart from the financial difficulties this may have brought on the operators, Rewane observed that the state of security for telecom infrastructure is not encouraging for any potential investor.

    “Every savvy rational investor considers the safety of his assets when making an investment decision. Unknown to most Nigerians, vandalism of telecoms infrastructure is a major problem. About two to three per cent of Nigeria’s BTS are shut down at any point in time due to vandalism, resulting in a loss of about $50million to $100million every year,” the report said.

    He said delays in investment are also encouraged by market uncertainties due to the current antagonistic environment between operators, regulators and the government.

    Such uncertainty in the telecoms sector, he reckons, can have a knock-on effect for the consumer, saying the experience in the United States in the early mid 1970s was a perfect example of what market uncertainties can do.

    He lampooned the frequent imposition of fines as sanctions on telecom operators by the industry regulators and  government using unregulated tax charges, a measure he maintains does not provide the platform needed for investors to commit more funds to capital expenditure.

    He said the story of the telecoms sector will mirror that of the petroleum industry if a proper regulatory and fiscal structure is not designed and enforced by relevant stakeholders.

    “Evaluating the dynamics of the telecoms environment, it is clear that there is still a strong need for increased capital investment in the industry. The publicised customer satisfaction levels with telecom operators serve as enough evidence for the need for improved services. However, until a solution is provided for the operators to deal with issues surrounding its operating costs, security, and uncertainty, Nigeria may not achieve the telecoms investment per capita observed in some of the emerging economies such as South Africa and Brazil,” he said.

    “Well-defined and legally backed fiscal and regulatory framework is needed to eliminate uncertainties about the telecom companies’ operations and potential investment. There is need for a uniform tax and levy framework across the nation which has a legal backing.

    “This would protect the operators from exploitative charges as well as the creation of unbudgeted new levies/taxes. Ultimately, a properly designed tax and levy framework will increase the positive perception of due process in the industry. Consequently, investor confidence in the environment will be improved and increase the probability of more capital investment in the industry,” he said.

  • Waiting for the fruits of Bayelsa Investment Forum

    Waiting for the fruits of Bayelsa Investment Forum

    Last weekend, Bayelsa State government hosted an investment forum in Yenegoa. For the citizens, what matters is the fruits of the event, writes Mike Odiegwu

    All roads led to Yenagoa, Bayelsa State capital last week. For over three days, personalities from different walks of life trooped into the city.

    It was not the just-concluded Most Beautiful Girl in Nigeria (MBGN) beauty pageant that brought them. They came to attend the first Investment and Economic Forum organised by the Governor of the state, Mr. Seriake Dickson.

    President Goodluck Jonathan, though was absent, was represented by Vice-President Namadi Sambo.

    But the ministers of Petroleum Resources, Mrs. Diezani Alison Madueke; Trade, Industry and Investment, Dr. Olusegun Aganga; former chairman of the Peoples Democratic Party, Alhaji Bamanga Tukur were among dignatries that attended the forum. They also delivered goodwill messages.

    Also, Chief Timi Alaibe, Mr. Uche Orji, Managing Director of Notore Chemical industries, Miss Ivana Osagie, Regional Manager South-south Operations Bank of industry, Mr Balarabe Musa were among the lead speakers and panelists.

    The Minister of Niger Delta Affairs, Chief Steve Oru and his counterpart at the state for Defence, Senator Musiliu Obanikoro, were not left behind. Investors from China, South Africa, Europe and America came to see Bayelsa and her business opportunities.

    The governor was convinced that the event was strategic. It was designed to bring eminent and foremost industrialists, entrepreneurs, tourists and influential politicians from different parts of the world to the state. It was put together to showcase the state as untapped rich business virgin that tasty for business suitors.

    Dickson believed that the programme would act as a key to unlocking the investment potential of the state and move it to the world map as a preferred destination for foreign investors.

    Indeed, one leg of the forum’s objective appears to have been achieved. People, locals and foreigners, came. They kept the state busy for three days. Most of the hotels were fully booked and from the world press conference to the cocktails including practical sections, contacts were established and business agreements were signed.

    Jonathan was concerned about using the forum as an opportunity to identify other investment possibilities in the state. He wanted the participants to be involved in diversifying the economy. He urged Bayelsa to develop other sectors of its economy instead of depending on oil and gas alone.

    Jonathan said: “Bayelsa must diversify its economic base. It should not focus on oil wealth. It should pay attention to agricultural, coastal landscape for tourism, maritime industry and new housing estate.

    “The desire by the state government for development will be supported by the Federal Government.”

    Dickson was in his best element. In an elaborate statement, Dickson sold Bayelsa to the world and told investors the specific money-doubling opportunities in the state.

    He spoke about tourism, agriculture and power generation. He solicited partnership in the areas of road construction, small and medium enterprises development to expand the economy beyond oil and gas.

    Keynote Speaker, Mr. Jim O’Neil, Retired Chairman of Gold Sachs Asset Management, was represented by Chairman of the World Economic Forum, Lord Malloch-Brown.

    He said the need to build an inclusive political government, create critical infrastructure and institutions to gain the confidence of investors.

    In line with the recommendations of O’Neil, the Chief Judge of the state, Justice Kate Abiri, said the state was ready to ensure quick dispensation of justice to provide an enabling environment for investment.

    Addressing potential investors, she said: “Bayelsa will not allow any corrupt investors in the state. We will do all we can to allow justice and your business must be in line with the much desired economic growth of the state government.”

    But, Mrs. Madueke said the Federal Government had taken practical steps to deepen its partnership with Bayelsa on a number of projects, including the Brass Liquified Natural Gas (BLNG).

    She said the final investment decision (FID) of the BLNG would be reached in the first quarter of next year adding that the Federal Government intended to create more jobs in the state through various programmes, using the Nigerian Content Development and Monitoring Board.

    She identified the Nigerian Content Development and Monitoring Board (NCDMB) as a critical element of petroleum development in the country. The minister insisted that establishing the content board had propelled Nigerians to participate actively in the petroleum industry.

    Mrs Allison-Madueke, who also visited the office of the board in Yenagoa and was received by the Executive Secretary of the board, Mr. Ernest Nwakpa, and other board members, said the Nigerian content had been deployed in other sectors of the economy.

    She noted that, work on a pipe mill development project at Polaku in Yenagoa local government area was ongoing in addition to the proposed industrial park at Otuoke.

    In his remarks, Dr. Aganga noted that Bayelsa, like Nigeria possesses a viable macro-economic environment for investments to thrive. He noted that the state accounts for more than 30 per cent of the nation’s crude oil production and could do well in agriculture.

    Dickson was able to extract commitments from some of the investors. The state government signed Memoranda of Understanding (MoU) with many companies.

    With Proton Energy, the government signed an MoU for the construction of 500mgw power plant and with the Bank of Industry, Mainstreet Bank and the Bank of Agriculture entered into an agreement to establishment N25billion SMEs development fund.

    Dickson was not done yet. His restoration government entered into pacts with Ostertrade for the establishment of ceramic tiles, glass and tomato paste and beans canning industries.

    Dickson further put pen to paper with the Federal Ministry of Communication Technology and four media organisations, comprising Channels Television, Africa Independent Television (AIT), Nigeria Television Authority (NTA) and Silverbird. The deal was aimed at promoting effective dissemination and management of information concerning government activities.

    The Minister of Communication Technology, Dr. Omobolaji Johnson signed on behalf of the Federal Government, while Secretary to State Government, Professor Edmund Alison Oguru and Information Commissioner, Deacon Markson Fefegha signed for the state.

    The governor Described SMEs as a critical aspect of the state’s economic plan, especially the diversification from the oil and gas sector. He urged the people of the state to key into the SMEs programme for the creation of wealth and job opportunities. He insisted that the era of dependence on political patronage was no longer sustainable.

    He presented some certificates of occupancy (C of Os) to Julius Berger Plc and other individuals and underscored the importance of the land title document in addressing the issue of access to business finance.

    Beyond the speeches, Bayelsans are watching. Many of them commended the efforts of the governor. Others are waiting to see the practical transformation of the theme of the forum “Unlocking Bayelsa economic potential: Opportunities and Challenges”, into a reality.

    In fact, they are looking forward to the establishment of ceramic tiles, glass and tomato paste, including beans canning industries in Bayelsa State.

     

     

  • Investment firm raises questions over Afribank liquidation

    Investment firm raises questions over Afribank liquidation

    Nigerians may not have heard the last word from Intangis Holdings, the American based investment company which claimed to have bought majority shares from Afribank PLC before it was taken over by AMCON, as the firm says it has evidence that the liquidation of Afribank and subsequent transfer of its assets and liabilities to Mainstreet Bank in August 2011 is illegal.

    In a statement issued on behalf of the firm by African Media Agency from Dubai and made available to The Nation, Intangis said: “Nigerian Bad Bank, AMCON, which was mandated to only deal with Afribank’s non-performing loans invested in its share capital, then liquidated the bank and transferred all its assets and liabilities to Mainstreet Bank, which it wholly owns. Afribank’s shareholders and creditors, including Intangis Holdings have been stripped of their rights, “said Jean Missinhoun, senior partner of Intangis Holdings.

    On July 1, 2014 Intangis Holdings filed a claim for damages for tortuous interference against AMCON in the Supreme Court of the State of New York to assert its rights.

    “The suspension of the ICC arbitration is a matter of procedure – Intangis Holdings has been substituting for the payment of Mainstreet Bank’s share of the advance on costs. This decision does not affect the outcome of the case. Intangis Holdings is fully focused on the action against AMCON in the Supreme Court of the State of New York,” confirmed Jean Missinhoun.

    AMCON  the firm stressed, had taken steps to divest from Mainstreet Bank from 15th of September 2014,  while omitting to make provision as required by the international accounting rules (IFRS) for certain liabilities of the bank, estimated by Intangis Holdings at US $ 1.4 billion.

    At the time AMCON invested in its share capital, Afribank with total assets of US$ 3 billion was ranked 16th among West African banks according to the 2009 league table “The top 200 African banks”, published by Jeune Afrique magazine. Afribank was also listed in the Dow Jones index “Africa Titans 50.”

  • Nebo, Amsoun seek more investment in power

    Nebo, Amsoun seek more investment in power

    The Minister of Power, Prof Chinedu Nebo and  the Ogun State Governor, Senator Ibikunle Amosun, yesterday advised more Nigerians to invest in the power industry to address the lingering electricity problems in the country.

    They spoke during the ground breaking of 90mega watts plants in Magboro, Ogun State. Nebo said more Nigerians especially those involved in the oil and gas sector should build more power plants to increase supply to the national grid.

    He said investments in the sector should not be left in the hands of a few Nigerians, arguing that the problems in the sector required that more people go into the electricity generation and distribution.

    He explained that Ogun State boasts of many plants  because of its belief that power is critical to the development of the economy.

    He said President Goodluck Jonathan had promised to commission the plant by December 2014 as part of efforts to improve electricity production in the country.

    He said: ‘’Bresson AS Nigeria, the company behind the 90 megawatts power plant has promised to increase the megawatts to between 250Mw to 300Mw in the next few years. This shows the commitment of the company and the Ogun State government to make the area more industrialised. ‘’

    Also, the state governor, Senator Ibikunle, said greater investments in the power sector would help in galvanising the economy.

    Ibikunle, who was represented by his Special  Adviser on Energy, Mr Taiwo Fagbemi, said poverty would reduce, once Nigeria could get the energy sector right. He said there are 12 licence operators in the state who have demonstrated the need to improve electricity supply to the national grid.

    He said the government’s investment in infrastructure was evident by massive road repairs and construction in  recent times.

  • ‘ Why Bayelsa is holding Investment Forum’

    ‘ Why Bayelsa is holding Investment Forum’

    Bayelsa State Commissioner for Trade, Industry and Investment Kemela Okara speaks on the state’s investment drive.  WALE AJETUNMOBI met him

    The Bayelsa State Investment andEconomic Forum comes up later this month; what exactly are you looking at?

    The Bayelsa State Investment and Economic Forum has been put together to create a platform for investors within Bayelsa State, within the country and investors from outside the country to come to Bayelsa State and explore the various opportunities for business that the state presents.

    What is the target audience for the event?

    We are targeting five main areas and a major one is power, because as you know, power generation is perhaps one of the most vital components today in ensuring that the economy, not only in Bayelsa State, but also across Nigeria is really able to perform as desired.

    As you may know, Bayelsa State is not just only an oil rich state, but it is also rich in gas. In fact, we have more gas deposits than oil. As you know, gas is a major feedstock to generate power, so it is one major hope that we have from this conference and we have actually commenced discussions with a number of companies and some with whom we have signed MoUs, who would want to come and site power generation plants in Bayelsa State.

    We know that we have a mid term objective of being able to generate 3000 megawatts of power, so we are looking for investors, who would want to come and take advantage of the investment opportunities in power genertion and gas deposits here, to feed into the national grid to supply the entire country.

    Another major area is agriculture. Bayelsa has major potentials in rice farming, aquaculture and these areas also have a direct impact on the livelihood of everybody, from the small farmer to the big farmer. In the rice sector, for instance, we have investors we believe will come, if we set up rice mills here, working in partnership with the local farmers, we can increase the opportunities for business for local farmers and opportunities for employment, so that’s the second segment.

    The third area we are focusing on at the investment summit is in the area of hospitality and tourism. The fourth area is, of course, what we are already known for, which is oil and gas. We know that we can expand the value chain in the oil and gas sector, increase local content in oil and gas. So, this is also an area where we are seeking to attract investors through this economic and investment forum.

    The final one seeks to look a bit ahead. We know that e-commerce is the future and you may be aware that in Nigeria today, we have companies like Konga doing for the Nigerian market what companies like eBay and amazon do in foriegn markets. So, we want to also provide a platform where businessmen in Bayelsa State can take advantage of e-commerce to extend their goods and services beyond Bayelsa State to the entire country.

    Can you give us an idea of some of the big investors that are expected to be in Bayelsa for this forum?

    We have companies like GE; we have gotten responses from the UK trade and industry department, which represents the UK business interest. We have gotten from Italy, Belgium and Poland. These are some countries that have already indicated that their trade missions will ensure that the chambers of commerce in their respective countries send representatives. Also, I had meetings with the Nigeria-Canada forum, which represents business interest in Canada, they have also indicated that they will be coming.

    There is also a U.S.-based interest in the power sector, that has indicated that, they would want to partner with us, they are taking a very strong role in this. So, we have a wide array of different interests from different countries, different trade missions and different chambers of commerce, who want to attend this event, so we are looking forward to a very good event.

    Sir, you said earlier that you had an interactive session with some of the interest groups back home. From your discussion with them do you think they are ready to welcome this investors, because one problem we have always had back home is that our local investors hardly go into big investments.

    So, how prepared are you to host the world?

    In terms of preparation, we are at advanced stages. Our preparation covers a wide range of activities in terms of giving the right information to those, who are arriving the country. They need the right information about visa, transport logistics arriving into the country and getting to Yenagoa, the hotels we have and the quality of the rooms. We also have to give information in terms of local security on ground which is important, so that people have a full sense of being safe and secure, when they are here. So, we have a checklist of all sorts of things that have to be done and we have a local organiSing committee, working to ensure that all these different things are done. I am just here perhaps as commissioner, the spokesman, talking to the public, but there are many people working in different aspects of what we have to do and all of that is going on very well.

    To the people of Bayelsa State, what would be your message to them, especially those on the streets?

    My message to them is very simple; the whole essence of growing an economy is to provide employment. At the end of the day, we want job security, we want to know that we can afford the basic necessities of life, we want to know that we can send our children to school, we want to know that we can give them a quality education and a good job and the options business offers. At the end of the day, what all of this is about is to increase the amount of money we have in our pockets, because if a business comes into an environment property prices will appreciate. People will have an incentive to take out loans from the banks to build houses, because they are sure of having tenants, because the business will employ people and people will be coming in. So, if we make Bayelsa State attractive for business, everybody benefits; it is as simple as that.

     

     

     

     

  • NLPC records 14.35% returns on RSA investment

    NLPC records 14.35% returns on RSA investment

    NLPC Pension Fund Administrator, a pension fund administrator has generated 14.35 per cent returns on the investment in Retirement Savings Account (RSA) pension funds in 2013 financial year.

    The PFA recorded gross earnings of N1.6 billion in the year under review, a 30 per cent increase from the N1.23billion recorded in 2012.

    Total fund under the management also grew from N59.5billion in 2012 to N79.15billion in 2013. The company however, recorded a profit after tax of N388.58 million in 2013 from N294.1 million in 2012, a 32 per cent increase.

    The Managing Director, NLPC, Wale Kolawolewho disclosed this during the firm’s ninth annual general meeting in Lagos, said the company will continue to render qualitative services to its numerous account holders and retirees so as to ensure that their life after retirement is full of happiness with sound mind.

    The Chairman of the company, Olabode Emmanuel, said earnings per share also increased from 20.14k in 2012 to 25.9k in 2013.

    He said: “Shareholders funds increased from N1.2billion in 2012 to N1.6billion in 2013 and global fund has continued to grow.

    “Despite stiff competition and a challenging economic climate, the firm had  continued to forge ahead, which confirms the ability of the management to steer the company on profitable course. The emergence of the world economy from global recession and the impressive growth rate of the Nigerian economy is expected to impact positively on output and employment in 2014.”

    Emmanuel saidthis is expected to lead to increase in contributions and remittances as well as reduction in the rate of untimely retirements and claim.

    All things being equal, we expect more funds under the management and increase in earnings and improved profitability in the years ahead, he said.

  • Nigeria needs $60b investment in oil, gas

    Nigeria needs $60b investment in oil, gas

    Nigeria’s oil and gas industry needs over $60 billion investment but the controversies surrounding the Petroleum Industry Bill (PIB) has made international oil companies (IOCs) hold-on to their money awaiting the passage of the bill, stakeholders have said.

    Participants at the ongoing World Petroleum Congress (WPC) in Moscow, Russia, yesterday said that Nigeria can always get the required funds needed to be invested in the sector if the government exhibits a sense of seriousness and focus on what it wanted.

    Discussants at a panel discussion on financing investment in the oil and gas industry;  challenges and opportunities, said there are funds, which run  into several trillion of  US dollars that are available for investment in the oil and gas industry globally, but  noted that such funds could only be deployed to areas where the environment is conducive and friendly for investments.

    Frankly Brooks, who spoke to reporters after the panel of discussion said: “We discovered that there are lots of funds that are available which can be invested in the oil and gas sector.  The estimate was that in the next 20 years the industry would require trillions of dollars globally.”

    He said it has been established that funds are available to support all the projects that have been earmarked to be carried out at different locations around the world.

    “But the environment must be friendly and attractive for investment for such funds to flow in that direction,” he said.

    The Group Executive Director, Commercial and Investment, Nigerian National Petroleum Corporation (NNPC),  Attahir Yusuf, said there has always been money to fund the oil and gas industry.

    He explained that funding the oil and gas industry could be carried out in different ways, such as equity financing, bonds and project financing. On equity financing, he said, the country can finance its projects through such arrangement because it does not have enough money, and also cannot afford to waste its scarce resources.

    He said there are so many ways Nigeria could raise money. What we need as a country is to carefully look at what we want, what funding will be suitable for that, and engage different funding organisations that are there. This is important because as a country we need to have focus strategies earmarked for raising funds, he said, adding that that the discussants looked at a different ways of dispensing funds based on sectors, from explorations, development, production and also transmitting the end product.

    “The conclusion therefore, for us as a country, is that we have a lot of funding requirements and we know that we don’t have all the funds, so we have to look for funds. But the good thing is that the funds are available, so we have to look at our requirements, be it in exploration, production or infrastruc-tural developments,” he said.