Governance, transparency key to unlocking structured finance —Seplat

Seplat Energy Plc has identified strong corporate governance, transparent financial dealings and management credibility as critical factors determining companies’ access to structured financing, as Nigeria seeks to deepen its capital market and mobilise long-term funding for economic growth.

The company said sustained engagement with lenders, investors and regulators, alongside adherence to stringent disclosure requirements, could strengthen investor confidence and improve companies’ ability to attract capital for strategic investments.

Eleanor Adaralegbe, Chief Financial Officer and Executive Director of Seplat Energy, stated this at the Olaniwun Ajayi Structured Finance Roundtable, in Lagos, where industry stakeholders examined barriers to expanding structured finance transactions in Nigeria.

Speaking during a panel session titled: “From Theory to Transactions: Overcoming Barriers and Scaling Structured Finance in the Nigerian Market,” Adaralegbe said the credibility of management teams and the quality of corporate governance were decisive considerations for financiers evaluating investment opportunities.

“I think one of the most fundamental things for the success of structured financing is the management team. The role of a management team is unbelievable. I’ve found in my journey with the company that this has been one area where a lot of people have invested in us because they believe in the management team,” she said.

Her remarks highlight the importance of institutional credibility in a financing environment where businesses need to demonstrate not only the commercial viability of projects but also the capacity of their management to deploy funds responsibly and deliver on agreed obligations.

Adaralegbe said Seplat Energy had built relationships with financial institutions by treating them as partners in the financing process rather than approaching them merely for transaction approvals.

“At Seplat, we work with financiers as partners. We don’t try to package a deal so that they can approve it. We work with them to ensure there’s a general understanding of what we’re trying to achieve, and we carry them along in our process,” she said.

According to her, this approach has helped the company establish enduring relationships with lenders, investors and regulators, supporting its ability to raise funds from local and international sources.

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She added that governance should be viewed as a strategic business tool rather than a regulatory obligation, particularly for companies seeking access to capital markets and sophisticated financing structures.

“The quality of our governance, the strength of our management team and our willingness to engage openly with stakeholders have enabled us to build credibility in the market. Governance is not just a compliance exercise; it is a strategic enabler that gives investors and lenders confidence to support long-term growth,” she said.

Seplat Energy’s experience also underscores the role of listing requirements in strengthening corporate institutions and improving disclosure standards, especially for companies accessing more than one capital market.

The energy company is listed on both the Nigerian Exchange Limited and the London Stock Exchange, a structure Adaralegbe said had reinforced its internal discipline and governance practices.

She explained that operating under the requirements of both exchanges had compelled the company to strengthen its compliance systems and meet demanding disclosure obligations, with the London listing providing additional exposure to rigorous governance standards.

“The regulators and listing authorities helped shape us as a company because we had to meet listing requirements in both Nigeria and London. There was a discipline that we had to build into how we operated as a business, and that really helped us,” she said.

Adaralegbe added that the Securities and Exchange Commission had also supported the company’s engagement with the regulatory system, helping it pursue initiatives over the years.

Her comments come as regulators and capital market operators continue to explore ways of expanding financing options for businesses beyond conventional debt and equity issuance. Structured finance can enable companies to tailor funding arrangements to specific assets, cash flows, projects or risk profiles, potentially widening access to capital for investment-intensive sectors such as energy.

However, the effectiveness of such arrangements depends on the quality of disclosure, the enforceability of contractual obligations, the reliability of financial information and the confidence investors have in the parties involved.

At the roundtable, the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, called for closer cooperation among regulators, legal practitioners, issuers, investors and other market participants to address regulatory and operational constraints affecting the development of structured finance in Nigeria.

Agama said the capital market could achieve greater depth and efficiency if stakeholders worked collectively to identify weaknesses in existing rules and propose practical reforms.

“We must work together. There is nothing wrong with our law firms identifying challenges in regulation and proposing ways to improve the regulatory framework. We must make this market better together because it is for the benefit of all of us,” he said.

He reaffirmed the commission’s commitment to investor protection while supporting innovation, stressing the need for a regulatory framework that encourages new financing solutions without undermining market integrity.

For Nigeria’s capital market, stronger structured finance arrangements could broaden the pool of funding available to companies, particularly those undertaking capital-intensive projects that require long-term investment.

The challenge, however, extends beyond designing new financial instruments to building the institutional confidence needed to attract investors. Seplat Energy’s position is that transparent engagement, credible management and strong governance must remain central to that process.

The roundtable therefore reinforced the need for cooperation between market participants and regulators to create financing structures that are commercially viable, transparent and capable of supporting sustainable business expansion.