Shell Nigeria has partnered with nine banks to launch a transformative $3bn contract finance facility, boosting indigenous oil and gas contractors with vital credit support in naira and dollars

Shell Nigeria Exploration and Production Company Limited Managing Director Ronald Adams on Thursday in Lagos formally launched a landmark $3 billion contract finance facility in partnership with nine leading Nigerian banks to strengthen indigenous participation in the oil and gas sector.

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The initiative, signed via a Memorandum of Understanding, aims to improve access to credit for local contractors executing projects for SNEPCo, with financing available in both naira and United States dollars.

The participating banks include First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank, and Fidelity Bank.

Adams highlighted the scheme’s alignment with national priorities. “The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention,” he said. “Our partner banks offer capital and discipline.

SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to the others, and the mutual accountability gives the arrangement its strength.”

Vice President, Finance, Shell Nigeria, CJ Akwaeze, described the facility as a clear demonstration of Shell’s commitment to supporting the growth of oil and gas operations across the country.

Chairman of the Petroleum Technology Association of Nigeria Wole Ogunsanya, represented by Dr Joan Faluyi, welcomed the development as a significant step forward.

He lauded the facility as a “gateway to unlocking contractor financing issues, which will also drive efficiency in contract execution.”

Representatives of the banks commended SNEPCo for the innovative arrangement and pledged ongoing support to strengthen local capacity.

This latest move builds on SNEPCo’s longstanding efforts to empower Nigerian firms.

Earlier this year, 43 wholly Nigerian companies participated in the turnaround maintenance exercise at the Bonga Floating Production Storage and Offloading vessel, out of 53 firms involved overall.

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The Contract Finance Facility is expected to further enhance the capabilities of indigenous companies and deliver greater value in the operations of Nigeria’s premier deepwater producer, fostering sustainable industry growth and broader economic benefits.