Nigeria needs finance to build enduring energy industry – Omale.
Nigeria needs adequate financial support to establish a sustainable and enduring energy industry, as highlighted by Richard Omale, the Deputy Managing Director of Les Energy Company Limited.
In his speech at the Nigerian Oil and Gas (NOG) Energy Week Conference and Exhibition, Omale emphasized the crucial role of finance in meeting the country’s energy demands. He stated that an enabling environment can only be fostered if there is sufficient funding available to develop the energy sector.
Omale expressed optimism about Nigeria’s potential to become a global energy giant, attributing this potential to the nation’s capacity and available funding.
However, he acknowledged the pressing need to address the challenges of financing new projects and capacity building. Many industry professionals are experiencing difficulties accessing funding, compounded by Environmental, Social, and Governance (ESG) restrictions.
Omale argued against considering energy transition in a way that hampers development, particularly in Africa, where the contribution to pollution has been comparatively low. He advocated for equitable discussions that treat Africa as an equal partner rather than a lesser one.
He said, “Fundamentally, Nigeria must confront both the funding and capacity development challenges to create an environment conducive to sustainable progress.
“The current practice of awarding contracts to the lowest bidder also poses a challenge. By prioritizing cost over capacity, companies lacking the necessary expertise were often awarded contracts, leading to project variations and incomplete deliveries. To combat this issue, the industry must adopt a sensible approach that values quality and competence over the lowest price.
“The lengthy contracting cycle further exacerbates the challenges faced by the industry. Projects often remain in the tendering stage for up to two years, impeding the timely execution of the desired projects,” Omale argued for a more efficient process aligned with Nigeria’s vision for impactful projects.
Les Energy, a company specializing in engineering, procurement, installation, construction, and commissioning, has taken strategic steps toward sustainability.
Through its sustainability department, the company prioritizes environmental and social factors in its projects, ensuring minimal impact on the community. Les Energy provides free training to members of the host community, empowering them to contribute to the oil and gas industry and society at large.
The company also emphasizes asset availability and maintenance, nurturing young engineers to ensure competent hands are available to serve the community’s needs.
In summary, Omale believes adequate financing, capacity building, sensible contracting practices, and streamlined project timelines are essential for Nigeria to fulfill its potential as a global energy powerhouse.
Les Energy’s commitment to sustainability and empowering the local community exemplifies a responsible approach toward achieving these goals.
