‘Mergers, consolidation to drive new phase of oil sector’s growth’
Managing Director of Renaissance Africa Energy Company Limited, Engr. Tony Attah, has projected a new phase of consolidation in Nigeria’s oil and gas industry, predicting that indigenous operators will increasingly
Managing Director of Renaissance Africa Energy Company Limited, Engr. Tony Attah, has projected a new phase of consolidation in Nigeria’s oil and gas industry, predicting that indigenous operators will increasingly merge and form strategic consortiums over the next decade to unlock growth opportunities and strengthen competitiveness.
Speaking at the Nigerian Content Academy Lecture, Attah said the evolving structure of the industry would likely produce a handful of dominant local players.
“Five big Nigerian independent oil companies will emerge in the next 10 years,” he said. “The future of this industry is about collaboration.”
He noted that indigenous firms have significantly expanded their operational and financial capacity in recent years, enabling them to acquire and manage assets divested by international oil companies (IOCs). Unlike global trends where international independents typically take over such assets, Nigeria’s transition has been driven largely by local companies.
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According to Attah, this shift is already yielding results, with indigenous operators now accounting for more than half of Nigeria’s crude oil production. However, he stressed that further consolidation is inevitable.
He said: “Renaissance is here, Seplat is here. The next phase will require others to combine strengths to create three to five additional strong players”.
He cited the formation of Renaissance Energy—a consortium comprising ND Western Limited, Aradel Energy Limited, Waltersmith Petroleum Development Company Limited, First Exploration and Petroleum Development Limited, and Petrolin Trading Limited—as a model for successful collaboration. He attributed the deal’s success to shared ambition, resilience, and long-term strategic alignment among partners.
Beyond consolidation, Attah outlined critical funding instruments available to operators navigating a tightening global capital environment. These include capital market listings, private equity, Eurobonds, joint venture structures, prepayment and offtake financing, and traditional bank facilities.
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He emphasised that access to funding depends heavily on “bankability criteria,” including proven reserves, strong governance, stable production profiles, robust risk management strategies, and credible operational track records.
“Without structure, governance and ambition, nobody will finance you,” he warned, cautioning companies against weak business models, overreliance on projected profits, and fragile balance sheets.
Attah also highlighted the importance of what he described as the “ABC creed”—Ambition, Belief, and Courage—as a guiding philosophy for operators seeking to scale.
On continental financing, he welcomed the establishment of the African Energy Bank by APPO and Afreximbank, supported by the Nigerian Content Development and Monitoring Board (NCDMB), but noted that its current capacity remains insufficient to meet Africa’s vast energy funding needs.
“Accelerating Africa’s energy financing is still a major challenge,” he said, adding that operators must clearly define their own value propositions, as “capital follows value.”
He further urged indigenous firms to strengthen corporate discipline, particularly in meeting financial obligations to vendors, warning that reputational damage could undermine growth. “Your business will not grow if you keep owing,” he cautioned.
Addressing broader industry concerns, Attah acknowledged a growing talent gap, attributing it to shifting youth interest toward emerging fields such as artificial intelligence and robotics, leaving fewer technically skilled professionals in the oil and gas sector.
Earlier, General Manager of the Nigerian Content Academy, Doris Opuwari, noted that persistent funding constraints continue to limit the growth of indigenous operators, expressing optimism that insights from the lecture would help chart a path forward.
