Adams advocates bold investments to tackle Nigeria’s energy deficit

With the imminent crew change in Nigeria’s petroleum industry, independent oil and gas producers have been urged to evolve strategies that will build resilience and position them for greater roles in meeting Africa’s long-term energy needs.
 
Delivering this charge at the Oida Fireside Chat, renowned petroleum geologist and industry leader, Dr Layi Fatona, stressed that capacity development, collaboration, and innovative financing remain critical for the survival of indigenous operators in the face of declining International Oil Companies (IOCs) presence in the country.
 
Fatona, who sits on the boards of Aradel Holdings Plc, ND Western Limited, and Renaissance Africa Energy Company Limited, said the resilience of the firms he has supported was built on the realisation that only Nigerians can sustainably develop the industry.
 
“IOCs come for profit and divest their interests when profit dwindles. It is Nigerians who can build Nigeria,” he said.
 
Speaking to a large gathering of professionals, including Olivier Houzé, the SPE International President, and Emeka Ene, the former Chairman of the Board of Trustees (BoT) of SPE Nigeria, Fatona said indigenous companies must pursue partnerships that integrate upstream and downstream operations, focus on shared goals, and strengthen human capital development.
 
He recalled that the consortium, which acquired Shell Petroleum Development Company (SPDC) Nigeria Limited, was only possible because of purposeful collaboration. According to him, no single indigenous player could have achieved the acquisition, which took multiple failed attempts and eventually drew from the existing partnership model at ND Western Limited.
 
On operations, Fatona highlighted the Ogbele Marginal Field as a successful model of integrated onsite development, designed to curb gas flaring and limit losses to vandalism. He described it as a demonstration of resilience and innovation in indigenous operations.
  
While identifying human capital development as the biggest challenge confronting Nigerian independents, he stressed that the industry must prioritise training and talent cultivation as “the petroleum industry does not recruit from the streets.”
 
On financing, Fatona dismissed fears of dwindling credit linked to climate activism, insisting that local players could still access domestic funding opportunities.

He cited NDPR’s early financing model, which raised capital directly from the local market.  He further cautioned against treating fossil fuels as a short-term resource, stressing that Africa’s energy demand remains high and unmet. According to him, energy access must take precedence over climate concerns, provided operators act responsibly.
 
MEANWHILE, the Chairman of an off-grid impact investment company, All On, and Managing Director of Shell Nigeria Exploration and Production Company Ltd (SNEPCo), Ronald Adams, yesterday, said Nigeria needs bold investments to address the energy deficit affecting millions of households and industries.
 
Adams, who spoke while addressing business leaders at the 2025 International Business Conference & Expo of the Lagos Chamber of Commerce and Industry (LCCI), noted that over 80 million Nigerians lack access to reliable electricity.
 
“The consequences of the deficit are far-reaching: stifled productivity, limited access to quality healthcare and education and stunted economic potential,” he said.
 
Adams, who assumed the role of All On Board Chairman last month, expressed optimism that with the right policies and investments, the deficit could translate to a $10 to $20 billion market opportunity, particularly in off-grid energy solutions such as mini-grids, solar home systems and clean cooking technologies.