FIDELITY BANK JOINS $3BN SNEPCo FACILITY TO FUND INDIGENOUS OIL AND GAS CONTRACTORS

FIDELITY BANK JOINS $3BN SNEPCo FACILITY TO FUND INDIGENOUS OIL AND GAS CONTRACTORS
By Prince Benson Davies

Fidelity Bank Plc has signed on to a $3 billion financing initiative launched by Shell Nigeria Exploration and Production Company Limited to support indigenous contractors in the oil and gas sector. The bank is among nine Nigerian lenders partnering on the facility aimed at improving access to capital for companies executing projects for SNEPCo.

The Contractor Finance Facility was unveiled in Lagos and will be offered in both naira and US dollars. The structure is designed to help local firms secure funding faster, deliver projects more efficiently, and expand their role in Nigeria’s energy value chain.

Speaking at the MoU signing ceremony, Dr. Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank Plc, said the bank’s participation reflects its commitment to financing that unlocks value from Nigeria’s oil and gas assets.

“On behalf of the board and management of Fidelity Bank Plc, we want to thank Shell Nigeria Exploration and Production Company Limited for enrolling us for this contractor finance facility. At Fidelity Bank, we are committed to ensuring that we provide financing that is needed to help Nigeria maximise its oil and gas assets,” she said.

She noted that the oil and gas industry remains a major contributor to Nigeria’s GDP and that timely funding is critical to keeping projects running. “As we all know, the oil and gas industry is a major contributor to the GDP of Nigeria and it is very critical that we have the financing required to get projects up and running. We have supported the oil industry significantly and we commit to continue to support contractors and the entire ecosystem,” Dr. Onyeali-Ikpe added.

Also speaking, the Managing Director of SNEPCo, Ronald Adams, said the facility aligns with the Nigerian Oil and Gas Industry Content Development Act, which promotes in-country value retention. He explained that the model creates shared responsibility among stakeholders.

According to him, the banks will provide capital and financial discipline, SNEPCo will provide contracts and payment domiciliation to de-risk lending, while contractors are expected to deliver on performance. “This creates a mutually accountable structure that gives the facility its strength,” he stated.

For Fidelity Bank, the partnership reinforces its strategy of supporting strategic sectors of the economy. The bank has a long record of financing energy projects and has backed indigenous players in areas such as LPG, infrastructure, and other big-ticket transactions. The goal has been to help local companies build capacity, scale operations, and deliver projects of national importance.

Executives present at the signing included Mr. Abolore Solebo, Executive Director, Corporate Bank, Fidelity Bank Plc; and Mr. Tunde Oduwole, Group Finance Director, SNEPCo.

The SNEPCo facility directly addresses one of the biggest barriers facing indigenous contractors: access to fit-for-purpose financing. By linking loans to existing contracts and payment flows, the arrangement is expected to reduce credit risk for banks, improve contractor liquidity, and enhance execution timelines.

Industry stakeholders described the initiative as a significant boost for local content. They said the structure will help close funding gaps, strengthen the capacity of Nigerian companies, and increase efficiency across the oil and gas supply chain.

With this partnership, Fidelity Bank says it will continue to deploy capital, sector expertise and relationship management to support projects that advance Nigeria’s energy security and economic growth objectives.

Photo caption:
L – R: Mr. Abolore Solebo, Executive Director, Corporate Bank; Dr. Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer (both of Fidelity Bank Plc); Mr. Ronald Adams, Managing Director; Mr. Tunde Oduwole, Group Finance Director (both of Shell Nigeria Exploration and Production Company Limited, SNEPCo); at the Memorandum of Understanding signing ceremony between SNEPCo and Nigerian banks for a $3bn contract finance facility aimed at improving access to credit for indigenous oil and gas contractors executing projects for the company in Lagos recently.