SHELL, BANKS LAUNCH $3BN FINANCING FOR OIL CONTRACTORS

Shell Petroleum Development Company (SPDC) and a consortium of local and international banks have launched a $3 billion financing facility to support oil contractors and service providers in Nigeria’s upstream sector.

The initiative, announced on Friday in Lagos, aims to enhance local content development, improve cash flow for contractors, and boost operational efficiency in the oil and gas industry. The facility will provide working capital, performance guarantees, and project financing to qualified indigenous contractors working with Shell and other operators.

Shell’s Managing Director, Mr. Osagie Okunbor, described the partnership as a strategic move to strengthen the local supply chain. “This $3 billion facility demonstrates our commitment to building a robust and sustainable oil and gas ecosystem in Nigeria. We believe in empowering local contractors to deliver world-class services,” Okunbor stated.

The banks involved include Zenith Bank, Access Bank, First Bank, and international partners such as Standard Chartered and Citibank. The consortium will leverage their expertise in structured finance to ensure the facility is efficiently deployed while maintaining strong risk management standards.

The Nigerian Content Development and Monitoring Board (NCDMB) welcomed the development, noting that it aligns with the Local Content Act’s objectives. NCDMB Executive Secretary, Engr. Simbi Wabote, said the financing will help bridge the gap in access to capital for local firms. “This is a welcome intervention that will deepen indigenous participation and create more opportunities for Nigerian businesses in the oil and gas value chain,” Wabote noted.

Industry analysts believe the facility will reduce reliance on foreign contractors, stimulate economic activities in oil-producing communities, and support Nigeria’s goal of increasing crude oil production.

Beneficiaries of the fund are expected to undergo rigorous due diligence to ensure transparency and proper utilisation of the credit lines. The programme is projected to support hundreds of contractors and generate significant employment opportunities in the sector.

As Nigeria seeks to maximise value from its hydrocarbon resources, initiatives like this are seen as critical to fostering a competitive and inclusive oil and gas industry.