At the recently concluded 2025 Nigeria Oil and Gas Outlook Conference in Lagos, Engr. Effiong U. Okon, FNSE, Managing Director of ANOH Gas Processing Company, joined distinguished panel to discuss one of the most pressing issues in Nigeria’s energy landscape: Exits, Divestments, and the Rise of Indigenous Players in Nigeria’s Oil and Gas”

Across a wide-ranging conversation, he addressed financial and infrastructural challenges in midstream gas development, the implications of IOC divestments, and the strategic shifts required for Nigeria’s indigenous companies to succeed.

On People as the Greatest Asset

In his opening his remarks, Okon was emphatic about what he sees as the foundation of success in oil and gas: people!

He said, it’s about people. People are your greatest asset. If you have the right people, they can put the right financial solutions in place and the right technical solutions too.”

He warned, however, that while IOC’s invested heavily in talent development, indigenous companies often focus only on cash returns, with very few taking the issue of people investment seriously.

“Most indigenous companies don’t spend on people. They don’t invest in people. For them, it’s about the cash — the challenge is they raised funding as debt or equity to acquire these assets, so it is obvious that this comes with enormous financial challenge and no business strives without financial robustness. But my biggest concern is that the wave of talent that was developed by the IOC’s over the last 50 years is aging and fading out fast as these IOCs rationalize their global portfolios with some divesting from certain jurisdiction resulting is loss of traction on recruitment, talent identification and development.

How are we going to fill that gap?” For Okon, the future depends on deliberate investment in human capital: building, training, and nurturing the next generation of professionals who will drive Nigeria’s oil and gas growth. This an area the indigenous, independents, marginal field operators, service companies and National Oil Company need to do more deliberately. 

On Financial and Infrastructural Challenges

When asked about the unique hurdles in financing and developing large-scale gas processing plants, Okon drew from his experience leading the Assa North Gas Project in Imo State.

“This is really about finance and infrastructure. When the IOC’s came to Nigeria, they built end-to-end systems — Shell in East and West with Export Terminals in Bonny and Forcados, Chevron in Escravos, Total in their own hub. But today, most of that integrated infrastructure is now broken into different segments and sold separately during the asset’s divestment, except for the recent SPDC sale to RAEC, ExxonMobil shallow water business sold to Seplat and Eni business sold to Oando Energy Resources, where some degree of the integrated infrastructure was preserved. So, when you buy in, you inherit all the complexities.”

He recalled the difficulty his project faced with the delayed OB3 pipeline:

“Imagine putting almost $850 million into the ground, and then your export route isn’t ready. It is painful — very hard from a finance point of view. The banks are calling, restructuring repayments; you can’t just sit idle. We had to quickly develop an alternative through NLNG, partnering with Oando Resources. That saved the early monetization phase of the investment.”

Okon explained that without control of infrastructure, projects remain vulnerable. “Your business is only as strong as its weakest link,” he said, emphasizing collaboration and leveraging existing assets as critical strategies.

On financing, he recounted how ANOH raised nearly $780 million through a mix of equity from NNPCL and Seplat Energy PLC, alongside syndicated debt from seven banks. He also flagged currency risks as constant pressure:

“In the midstream gas business, the agreements contracts are normally in dollars, but payments often come in naira for gas sales into the domestic market. Lenders don’t want naira due to volatility. That’s why condensates are so important — they provide dollar revenues to support repayment”.

He summarized the midstream financing playbook in three points:

• Infrastructure is a huge challenge — collaboration is key.
• Financing requires innovation and strong partnerships.
• Currency risks must be mitigated with dollar-earning streams.

On IOC Divestments and Midstream Opportunities

Turning to the much-debated IOC divestments, Okon took an optimistic view:

“I think this is the best thing that has ever happened to Nigeria. The IOC’s were never really interested in national interest — look at gas-to-power. Nigerians weren’t paying for power, so why would they invest? Now Nigerians are beginning to believe in Nigeria. We’re taking our destiny into our own hands.”

He cited recent growth in midstream projects, including LPG deliveries directly into the domestic market and new FLNG initiatives.

“The potential is massive. Nigeria has about 600 TCF of undiscovered gas in addition to the 209 Tcf of discovered gas and we are just scratching the surface of this huge resource base that has transformed other economies like the US, Qatar, Australia, Russia where investment in gas has transformed their economy and it is cleaner than oil so good for sustainability/ESG. From my experience as a reservoir engineer, this terrain is more gas-prone than oil-prone. With our people still in energy poverty, there’s no better time than now”.

On What Indigenous Players Need Most

When asked whether financial, technical, or operational capacity was most essential, Okon reframed the debate.

“It’s hard to pick just one. For me, it’s about long-term excellence. Oil and gas is a long-term business — it takes about 3 to seven years before you even begin recovering investments. The typical Nigerian businessman wants money today and returns tomorrow. That’s why many fail. What we need is patience, discipline, and excellence in all areas (operational, technical, financial, regulatory, governance, functional, etc.)  over the long term.”

He stressed that long-term excellence requires competent boards, strong management, and strategic discipline. “You can’t just raise finance and buy private jets when the funds are meant to execute annal work programme and budgets to deliver value to all stakeholders,” he warned. “Excellence means become the best at delivering on cost, value, and sustainability — consistently.”

On Project Prioritization and Stakeholder Engagement

Okon also weighed in on how projects are prioritized in a competitive global environment.

“If you work for an IOC, you’re looking at a global portfolio — deciding between Guyana with 21 billion barrels, or Nigeria like for the ExxonMobil case, or elsewhere. But indigenous companies are plugged into national interest. We don’t wait for decisions from The Hague or Houston. That’s an edge we have.”

Yet, he cautioned, stakeholder engagement remains the true make – or – break factor.

Reflecting on ANOH’s operations in Imo State, he said: “We’re operating in one of the most volatile parts of Nigeria, but we’ve not had a single security or community incident. Why? Because even the young man from the small Assa village where our gas plant is being constructed has a seat at the table for dialogue and engagement, we listen and have honest discussions no matter how difficult. Everyone’s concerns matter — jobs, contracts, inclusion. Once you shut out any stakeholder, you’re asking for trouble”.

On the Role of Young People

Okon expressed confidence in the Nigeria’s youth. “Today, you see young startups developing IT solutions — even for pipeline security. These are smart, hungry, innovative entrepreneurs. Yes, there are cybersecurity threats, but I’m not worried about our young people. They’re already stepping up.”

Conclusion

In closing, Engr. Okon reiterated his central theme: people and long-term excellence.

“At the end of the day, it comes back to people. They are the ones who build systems, secure financing, and drive strategy. If we invest in people, pursue long-term excellence, and align technology with strategy, Nigeria’s indigenous players can truly rise to the occasion”, he concluded.