Herbert Wigwe,the groupmanaging director of Access Bank Plc has asked Nigerian Indigenous Oil Companies to develop sound corporate governance so as to attract finance from local banks.
Wigwe said Nigerian banks are well capitalised to provide funding of major oil investments in the country, adding that though there are policies limiting the lending but the banks could move a little above that to encourage independent operators.
Speaking at a session with independent oil companies in Abuja, the GMD who was represented by the executive director of the bank, Elias Igbinakenzuan declared that financing oil projects in Nigeria is not an issue, but said players should entrench good governance.
“We should understand it in global terms and apply it. There must be transparency, accountability and when all these are established the banks will support’ he said.
He said that though, oil project is risky, but good governance can help make the difference.
He also said that the CBN policy to peg lending at 20 percent is somehow misunderstood, explaining that banks could go up to 60 percent.
According to him, the banks can lend as much as 60 percent as the industry can be financed at its three key critical areas of upstream, midstream and downstream each attracting 20 percent funding.
The GMD said the Bank was delighted to be a part of the Oil and Gas Conference in Abuja, and that its involvement in the sector was in line with the commitment to contribute to the economic growth of the country.
“Our support for the oil and gas industry remains strong. This further demonstrates our commitment to increase the capability of corporate customers as we continue to put them first in the heart of our business” he stated.
He said Access Bank has been a major sponsor of the Conference noting that the Bank’s presence and active participation at the 2015 event reflects its focus on being a strategic partner to key stakeholders across the industry value chain.
He promised the Bank’s continued partnership with and assistance to the oil and gas companies by supporting initiatives that will create business opportunities and investments in Nigeria and the African continent.
According to him, “Access Bank has played, and will continue to play, a significant role in supporting the growth of the industry by arranging appropriate financing for operators to enable them execute their projects.”
As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations.
The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.