Energy
Nigeria must build domestic energy finance ecosystem
Oando's Alero Balogun has urged Nigeria to establish local financial systems to offset declining international capital for energy projects.
Key points
- International lenders are retreating from African energy projects due to policy and operating risks.
- Oando executive Alero Balogun spoke at the 2026 NAEC Energy Conference in Lagos.
- Nigeria's heavy reliance on fuel exports makes domestic capital mobilisation critical for sector growth.
Capital retreat
International lenders are increasingly turning away from African energy projects, leaving a substantial gap in funding. According to EnviroNews Nigeria, Alero Balogun, who serves as the General Manager for Corporate Communications at Oando Plc, highlighted this trend during a panel session at the 2026 NAEC Energy Conference in Lagos.
Balogun pointed out that foreign financial institutions are reluctant to support long-cycle investments due to operating risks, regulatory uncertainty and policy inconsistencies. She noted that these global financing trends do not align with the capital requirements of the African energy sector.
Local solutions
To address the funding shortfall, Balogun stressed that the country needs to create a resilient, domestic financial framework. Building indigenous capacity allows local stakeholders to manage the financing of high-risk energy ventures independently.
Data from the World Bank shows that fuel exports accounted for 85.9 percent of Nigeria's merchandise exports in 2025, underscoring the vital need for a secure funding base to sustain the industry. Experts at the Lagos conference agreed that improving access to finance remains essential for empowering local operators and driving long-term sector growth.
Original reporting
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
