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Posted by toluwalopesong
 - Jan 27, 2025, 10:30 PM
Stanbic IBTC Eyes CNG, LNG Infrastructure From N148.7bn Rights Issue

Stanbic IBTC Holdings has revealed plans to channel proceeds from its N148.7 billion rights issue toward developing infrastructure for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) in Nigeria. The initiative aligns with the growing demand for cleaner energy alternatives and the government's push for energy transition.

In a statement, the financial institution highlighted its commitment to supporting Nigeria's energy diversification goals by investing in critical infrastructure that would facilitate the adoption of CNG and LNG. These funds are expected to bolster the establishment of refueling stations, vehicle conversion centers, and LNG storage facilities, thereby expanding access to cleaner fuel options.

Stanbic IBTC's Chief Executive Officer, Dr. Demola Sogunle, noted that the investment will not only contribute to environmental sustainability but also stimulate economic growth by creating jobs and reducing the nation's reliance on petrol. He emphasized that the rights issue is part of the bank's broader strategy to support sectors pivotal to Nigeria's economic transformation.

The financial institution has already begun engaging stakeholders in the energy and transportation sectors to identify priority areas for investment. It is also working closely with regulatory bodies to ensure compliance with industry standards and alignment with national energy policies.

Industry experts have lauded Stanbic IBTC's move, describing it as a significant step toward addressing the infrastructure gap in Nigeria's energy sector. However, they cautioned that effective implementation and transparent management of funds will be crucial to achieving the desired outcomes.

The bank's decision to focus on CNG and LNG infrastructure reflects a growing recognition of the role financial institutions can play in driving sustainable development. With the rising cost of petrol and global shifts toward cleaner energy, investments like this are expected to position Nigeria as a competitive player in the global energy market.