OTL Africa 2024: First Bank Assures of Continued Investment in Africa’s Oil and Gas Sectors

First Bank of Nigeria (FBN) Plc, has re-affirmed its commitment towards enhancing investment in Africa’s oil and gas sectors. With a robust presence across six African nations and strategic partnerships in the UK, France, and China, the bank is poised to support various clients and projects in the region.

Oluwatoyin Aina, Group Head of Energy at First Bank, while speaking during a panel session at the ongoing OTL Africa Downstream Energy Week in Lagos, Nigeria highlighted the bank’s extensive involvement in the Democratic Republic of Congo (DRC), Ghana, Guinea, Sierra Leone, Senegal, and Uganda.

“We’re actively supporting clients in Nigeria and other West African countries, showcasing our strategic opportunities across the continent,” Aina stated. “Our engagement in refinery projects in Senegal and Ghana is a prime example, where our letters of credit facilitate local firms in securing vital international resources.”

During her address, Aina emphasized First Bank’s significant role in Nigeria’s refining sector, particularly with the Dangote Refinery now operational. “The demand for U.S. dollar-denominated letters of credit remains high as new refineries come online,” she explained. “Local refineries still require payments in U.S. dollars, which puts pressure on local currencies.”

Aina also underscored the bank’s support for critical infrastructure projects. “We’ve provided funding not just for the Dangote Group but for essential storage and logistics facilities throughout Nigeria. With the lifting of fuel subsidies, market conditions are now more favorable for investment, allowing our clients to pursue better returns.”

Looking ahead, Aina sees potential for increased financial inflows from foreign direct investment and local diaspora engagement. “Recent international divestments, including Oando’s acquisition of assets in Nigeria, can boost crude oil production in the next 12 to 24 months, enhancing foreign currency reserves and benefiting local enterprises.”

The Energy Financing Expert also touched on the nexus between Fossil fuels and Renewable Energy. She indicated that despite the global clamour for clean energy, fossil fuels would still remain relevant for a long time due in part as foundation support to uphold development of renewable energies.

As Africa’s energy landscape evolves, Aina reassured attendees of First Bank’s dedication to facilitating growth and investment. “As long as our clients achieve profitable outcomes, we are committed to supporting them every step of the way,” she concluded.