NAPE Seeks Establishment Of Energy Bank

The National Association of Petroleum Explorationists (NAPE) has called for the creation of a Special Energy Bank to finance petroleum exploration activities in the country.

President, NAPE, Patricia Ochogbu made the call during a panel session at the Association of Energy Correspondents of Nigeria (NAEC) 2021 Strategic International Conference on Tuesday in Lagos.

The conference had as its theme: ‘Petroleum Industry Act: Energy Transition and the Future of Nigeria’s Oil and Gas.’

Ochogbu noted that even though the PIA had set aside funds for exploration of frontier basins in the country, the money would not be available for private sector investors.

She said exploration activities take a long time to mature, which makes commercial banks not favourably disposed to granting loans for such purposes.

“We need to have a dedicated bank like the Bank of Industry or Nigerian Export-Import Bank.

“They can grant loans for exploration activities at reduced interest rates. So, I believe energy bank is the way to go", she said.

Also, the Conference Chairman, Biodun Adesanya, lauded the setting aside of 30 percent of the profit of the Nigerian National Petroleum Corporation for exploration activities in the frontier basins in the PIA.

Adesanya said the discovery of oil and gas resources in other areas apart from the Niger Delta was a welcome development that should be pursued with vigour by the country.

He, however, called for the appointment of competent personnel to manage the sector, noting that this was the only way Nigerians could benefit from the country’s abundant oil and gas resources.

Similarly, Professor Emeritus of Petroleum Economics, Prof. Omowunmi Iledare, said effective implementation of the PIA was pivotal to the future of Nigeria’s oil and gas industry.

Iledare advised the government to collaborate with industry stakeholders and academia to work out modalities on how best to implement the act.