One of Nigeria’s International Oil Companies (IOC), Nigerian Agip Oil Company (NAOC), has identified lack of funding as a major constraint to Nigerian companies operating in the oil and gas industry.
The oil company made it known that it was important to explore ways to make funds available for Nigerian-owned ventures if the country was to achieve the projected self-sufficiency in executing significant contracts and projects. Lorenzo Fiorillo, Vice Chairman/Managing Director of NAOC said during a workshop organised for industry operators.
However, the Joint Venture collaboration with three Nigerian banks had greatly minimised the problem. According to Fiorillo, “Over time, we have identified financing as a major gap in the ability of Nigerian companies to bid and execute contracts in the oil and gas industry, consequently, in the last four years, NAOC has entered into a Memorandum of Understanding on vendor financing schemes with three major banks in Nigeria- Stanbic Ibtc, UBA and Zenith in order to support her contractors in providing funds for the execution of projects and contracts awarded by the company.”