• Thursday, June 20, 2024
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LPG dealers tap R&A for N100bn capital raise

LPG dealers tap R&A for N100bn capital raise

Reap & Arcenciel Limited (R & A), a Lagos-based management consulting and financial advisory firm, will support members of the Nigerian Liquefied Petroleum Gas Association (NLPGA) in their efforts to raise capital for expansion purposes.

The two organisations last week signed a memorandum of understanding in an arrangement that is expected to lead to the generation of over N100 billion for members of the NLPGA for such purposes as enhancement of working capital, plant expansion and acquisition of critical equipment.

Speaking on the development, the Executive Director, Operations for R & A, Debo Adeniran, said this collaboration is expected to deepen the LPG space in Nigeria especially against the background of government’s efforts to deepen the usage of gas as an alternative source of energy in Nigeria.

Adeniran noted that R & A, “having assisted many companies in Nigeria to raise over N200 billion in the Nigerian financial market since its commencement of business in 2009, is well structured to support the aspirations of members of NLPGA especially given its deep interaction with players in the oil and gas sector in the last few years.”

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He further said his company had already commenced discussions with various financial institutions such as development financing institutions, commercial banks, private equity companies, asset managers to develop structured financing schemes that will meet the specific needs of the various categories of business in this space.

In his remark, the Vice President of NLPGA, Bashir Abdulrahman, said the association is “highly delighted to engage R & A for this purpose, noting that this arrangement would enhance the ability of the various members to contribute effectively to the recent initiatives to leverage on Nigeria’s potential in the LPG space to grow the nation’s economy.”