The recent flurry of project financing in Nigeria’s oil and gas sector has all the hall marks of a lively market. Oil and gas major Royal Dutch Shell is selling off a collection of onshore and shallow water assets to consortiums of small, indigenous oil groups. Local firms have swooped on acquisitions varying in size from between $200 million to over $1 billion.
It’s a process that has highlighted the buoyant domestic lending market and is also indicative of real optimism in the government’s ability to address the militancy in the Niger Delta, which has stymied the industry for years. Yet the bubbling deal flow is only surface deep. Delve down and the Nigerian market remains semi-paralysed by the stalled passage of key legislation on which so much new investment hinges.
Shell sales spark local lending spree
Local banks, which have responded enthusiastically...
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