By Ayomide Otitoju
Fidelity Bank Plc has joined the $3 billion Contractor Finance Facility launched by Shell Nigeria Exploration and Production Company Limited (SNEPCo) in partnership with nine leading banks to boost financing for indigenous oil and gas contractors.
The facility, unveiled in Lagos, is designed to provide credit support in both naira and United States dollars to local contractors executing projects for SNEPCo, with the aim of improving access to funding, strengthening project delivery and deepening local participation in Nigeria’s oil and gas value chain.
Speaking at the launch, the Managing Director and Chief Executive Officer of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, reaffirmed the bank’s commitment to financing projects that maximise the country’s oil and gas potential.
She said the oil and gas sector remains a major contributor to Nigeria’s Gross Domestic Product (GDP), making access to finance critical for project execution and industry growth.
According to her, Fidelity Bank has consistently supported the sector and will continue to provide funding for contractors and other stakeholders across the energy value chain.
The Managing Director of SNEPCo, Ronald Adams, said the initiative aligns with the objectives of the Nigerian Oil and Gas Industry Content Development Act by promoting local value retention.
He explained that while participating banks provide financing and lending discipline, SNEPCo contributes contracts and payment domiciliation to reduce lending risks, with contractors expected to deliver projects efficiently under the arrangement.
Fidelity Bank said its participation reflects its long-standing commitment to supporting strategic sectors of the economy, particularly oil and gas, where structured financing is essential for project delivery, local content development and national energy security.
The bank noted that it has financed several major transactions and infrastructure projects in the energy sector, including support for indigenous operators, liquefied petroleum gas (LPG) initiatives and other local content development programmes.
According to the bank, the SNEPCo Contractor Finance Facility addresses one of the industry’s longstanding challenges by improving access to fit-for-purpose financing for indigenous contractors through a structure backed by contracts and payment domiciliation.
Industry stakeholders said the initiative is expected to ease financing constraints for local contractors, strengthen capacity and improve efficiency in the execution of oil and gas projects.
