Africa Finance Corporation (AFC) and Standard Chartered Private Equity Limited have expressed their commitment to the growth and development of Nigeriaâ€™s economy.
Both firms have indirectly invested over N10.06 billion in the Nigerian petroleum industry, especially in the gas and midstream sector of the industry.
Standard Chartered and AFC recently invested about N7.08 billion ($47.5 million) and N2.98 billion ($20 million), respectively, in Seven Energy Limited to acquire minority stake in the firm.
Seven Energy Limited, which is an international firm, operating in Nigeria as Septa Energy Limited, is an independent gas development and production company founded in 2004 by a group of Nigerian business executives and investors, with offices and representation in Mauritius, London, Calgary, Lagos and Houston.
According to statement jointly signed by both companies, the Nigerian gas and midstream sector has largely been undeveloped due to the lack of significant capital necessary to develop the requisite infrastructure.
The statement reads, â€œSeven Energy Limited, through its local subsidiary, Septa Energy Limited, is playing a critical pioneering role in developing this sector, in keeping with the Nigerian governmentâ€™s strategy under the Gas Master Plan.
â€œThe companyâ€™s operations are expected to have a significant and positive effect on other key sectors of the Nigerian economy such as power.
â€œAFC and Standard Chartered are pleased to support this effort with the equity investment that both corporations are making in Seven Energy Limited. Our view is that this support will help develop Seven Energy Limitedâ€™s business and strengthen its competitive positioning and, ultimately, address the natural gas supply demand imbalance in Nigeria.
Both companies also clarified insinuations about their investment in the firm, noting that there were recent reports linking them to investing in another firm, different from Seven Energy Limited.
They said, â€œAFC and Standard Chartered Private Equity Limited wish to clarify that recent media reports pertaining to both corporationsâ€™ investments in the firm, â€˜Seven Energyâ€™ refer to Seven Energy Limited and not â€˜Seven Energy Nigeria Limited.â€™
â€œThere is no affiliation between these two firms. Neither Standard Chartered nor AFC is affiliated in any way with Seven Energy Nigeria Limited, nor has either corporation made investments in Seven Energy Nigeria Limited.â€