Amanze Chinonye
Renaissance Africa Energy has secured financing commitments from 13 banks for a $4.1 billion dollar-denominated portfolio and a separate ₦435 billion facility to support indigenous oil and gas contractors as the company pursues production growth.
The financing arrangement was formalised through a memorandum of understanding signed in Lagos on Wednesday as part of the relaunch of the Renaissance Vendors Financing Scheme (RVFS). The subscribed portfolio exceeds the scheme’s original targets of $1 billion and ₦100 billion, the company said.
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The programme builds on a contractor-financing initiative introduced in 2010 when the business was operated by Shell. Renaissance said the scheme had recorded no defaults under previous administrations, citing the repayment record of participating vendors.
The 13 participating institutions are First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC Bank, Standard Chartered Bank, First City Monument Bank, Sterling Bank, Wema Bank, Union Bank, The Infrastructure Bank and African Export-Import Bank.
Managing Director and Chief Executive Tony Attah said the financing arrangement would help contractors obtain funds for projects supporting the company’s expansion plans. He said the programme began during the Shell era with a fund of about ₦1 billion before evolving into a larger financing initiative.
Attah said the participating banks were offering contractors more competitive interest rates than they might obtain by approaching lenders independently. Renaissance did not disclose a standard lending rate or the amount of the subscribed portfolio already disbursed.
The company said it increased production by 100,000 barrels per day within 100 days of taking over the assets in March 2025. It has set a target of 500,000 barrels per day by 2030 and plans to produce more than 2.2 billion standard cubic feet of gas per day for energy supply, alongside an additional 1 billion standard cubic feet per day for industrial use, Attah said.
Olusegun Banwo, Renaissance’s executive vice president for finance, strategy and commercial and chief financial officer, said the scheme’s performance would be assessed by the volume of financing disbursed, how quickly eligible contractors accessed funds, and the resulting effects on mobilisation, project execution, Nigerian content and production.
Banwo also referred to an ambition to reach one million barrels per day by 2030, a figure that differs from the company’s stated target of 500,000 barrels per day. Renaissance did not explain the distinction between the two production targets.
Wole Ogunsanya, chairman of the Petroleum Technology Association of Nigeria (PETAN), said the scheme could help indigenous oilfield service companies overcome high borrowing costs, short repayment periods and stringent collateral requirements.
Ogunsanya said contractors with confirmed projects could access financing without conventional collateral, subject to verification by Renaissance. He said borrowing rates for Nigerian oilfield contractors often ranged from 10% to 12% and expressed hope that the scheme could reduce them to between 8% and 9%.
He added that contractors would need substantial investment in equipment over the next four to five years to support higher industry output. Equipment acquired through the scheme could also be used by other operators when it was not required for Renaissance projects, he said.
The programme began as the Shell Kobo Fund, which provided contractors with financing through three partner banks. It was renamed the Shell Contractor Fund in 2016 and expanded to include five additional banks, according to information provided by Renaissance.
Between 2017 and 2025, the scheme disbursed and liquidated $1.3 billion, while the number of registered vendors increased from at least 950 to more than 1,320, the company said.
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The latest expansion process began in April 2026, followed by an expression of interest in May, commercial bids in June and requests for revised bids in July. The 13 banks were selected in August, executive alignment followed in September, and the memorandum of understanding was signed in October.
The financing is intended to strengthen indigenous contractors’ capacity to execute oilfield projects. Its impact on production, however, will depend on actual disbursements, lending terms and the timely delivery of funded projects.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
