The Chief Executive Officer (CEO) of Nigerian Stock Exchange (NSE), Oscar Onyema, has state that domestic investors are still willing to continue to put money into the oil and gas sector. Though, he noted that the sector will continue to experience eternal pressure throughout 2020 due to COVID-19 pandemic.
Onyema spoke at the Seplat Energy Summit 2020 with the theme “Business Sustainability and Strategic Leadership in Africa” where exciting discussions were held on providing valuable insights on the challenging cases on the role of energy systems to build a sustainable Africa Economies.
The maiden event held virtually on Thursday July 30 had in attendance government officials, apex and self-regulatory organisations, capital market operators, investment bankers, policymakers, Chief Executive officers (CEOs), economists, researchers, analysts, academics, and private equity firms.
The NSE CEO explained that the global pace of growth and the intensity of the trade tensions between the US and China will continue to be a determining factor for investments.
On how to finance the energy sector in the African Continent, former Director General of Security and Exchange Commission (SEC), Arunma Oteh, asked energy companies to rigorously optimise their cash flow by rigorous cost cutting, but also rationalisation asset portfolio.
“They should try to divest non-performing assets, optimise investments in mergers and acquisitions and explore other financial structures,” Oteh said.
Seplat Petroleum Development Company Plc is a leading Nigerian independent energy company listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).
Roger Brown, incoming CEO of Seplat said Africa as a continent needs to build that baseload for which it can build from and drive it’s gas agenda which Nigeria can lead through renewable energy.
Concerning expectations from the government which will allow Nigeria to play a leading role, Brown said the government should support oil firms through partnerships in Joint Venture agreement, more support in competing transactions and approvals and clearer legislation.
Lord Mark Malloch-Brown Chairman, Corporate Social Responsibility Committee, SEPLAT Board said African energy is caught in two overlapping revolutions which include shifting from being a supplier to the global markets to a supplier to a pan African regional market and the dramatic potential change in the energy mix as it shift from fossil fuels to renewables.
“Africa is right up there as one of the most dynamic growing markets, also the continent has some of the most important potential renewable assets in the world,” Malloch-Brown said.
“We need to leverage on Africa over 527 TCF proven natural gas reserves and use that side by side complementary to building up our renewables profile as well which Nigeria should be championing,” Audrey Joe-Ezigbo, President of Nigerian Gas Association said at the event.
President and Chairman of the Board of Directors, African Export-Import Bank (Afrexim) Benedict Oramah, said the future for Africa is integration which was why African Continental Free Trade Area (AfCFTA) was put in place which will create a harmonised approach that will distribute energy in a way that allows direct consumption.
Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC), said Africa has huge gas resources, particularly in Nigeria, which can be harnessed for power industrialisation and also leverage for other opportunities.
“We must not lose sight of the fact that the world is transitioning to renewable,” Kyari said. “Gas business is the future.”
Seplat’s Chairman Ambrosie Orjiako said the company will continue to be a trailblazer, and as the business environment changes.
“Seplat’s growing gas business will become a very audacious first step towards making sure that our operations are aligned with the climate change narrative,” Orjiako said.
Other speakers at the events said without efficient energy supply, the adoption of emerging technologies in areas from healthcare to education to agriculture becomes severely limited.
To overcome these challenges, other speakers noted that enabling fast and future-fit energy transition becomes crucial.
Timipre Sylva, Minister of State for Petroleum Resources, commended Seplat Petroleum Development Company plc (SEPLAT) on its phenomenal achievements and remarkable successes within just 10 years in the Nigerian Oil and Gas Sector.
