NLNG: How De-risking Nigeria’s Energy Sector Will Attract Investments

Emmanuel Addeh in Abuja

Nigeria NLG Limited (NLNG) has reaffirmed that a well-structured, low-risk in Nigeria’s energy sector is essential to unlocking investments, accelerating economic development and strengthening energy security.

Speaking at a panel session titled: “De-Risking Investments in African Oil and Gas Projects” during the ongoing Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, NLNG’s General Manager, Production, Nnamdi Anowi, said when oil and gas projects are perceived as too risky, investors tend to withdraw.

According to him, this leads to stalled projects, job losses, and missed revenue opportunities critical for national growth.

He stated that reducing risks in oil and gas projects, beyond being a business strategy, was a matter of national importance for Nigeria’s economy, energy security, and long-term development.

Besides, he explained that for NLNG, lowering risk means keeping gas flowing reliably, meeting long-term contracts, and ensuring the company remains a trusted supplier to global and domestic markets. “When our projects are well planned and well managed, investors have confidence, operations are stable, and NLNG can continue contributing to Nigeria’s economy,” he said.

According to Anowi, de-risking starts with clear and consistent government policies, strong contracts that are respected, and projects that are properly prepared before money is spent. These steps make it easier for banks and investors to fund projects at lower cost, which ultimately benefits both companies and the country.

Anowi also highlighted the importance of good infrastructure, local skills, and modern technology in reducing everyday operational risks. He said that when pipelines, processing facilities, and digital systems work well, projects are safer, cheaper to run, and more reliable over time.

“If we reduce risk the right way and work together, investment will come, the next decade must focus on growing proven, bankable projects that deliver real value to the country, ” he further said.

Anowi, a process engineer, noted that Africa and Nigeria in particular is investable when risks are planned for and managed carefully, not ignored.

On what financiers look out for when they are approached to fund gas projects, he said: “Any investor who wants to invest wants to know where his revenue is coming from. It’s the big one. You have to really take a risk.

“So if you don’t have long-term contracts signed, where you are going to deliver the gas, no investor is going to touch it. Then you look at governance again. Every investor wants to know who is on your governance team. Do you have experience on your governance team?

“And when they look at such things, then you are part of the people they will be looking at for investment,” he added.