Stakeholders in the downstream petroleum sector are calling for stronger collaboration with banks to unlock financial opportunities.
During the 2025 Chamber of Oil Marketing Companies (CoMAC) downstream dialogue, industry players expressed concerns that current bank requirements, particularly collateral demands, are creating significant challenges and hindering sector growth.
They argued that the excessive sureties required by banks to mitigate risks are not conducive to investment or development in the downstream petroleum industry.
Isaac Danso, a member of CoMAC, emphasized that the existing level of collaboration between banks and downstream players has not been yielding enough benefits.
” We need to have enough collaboration, and set up tailor-made products for our industry, so we also thrive. Other than that they are taking everything without we getting anything in return,”
Mr. John Awuah, the former CEO of the Association of Banks, urged banks to focus on financing viable projects within the petroleum sector, highlighting that interest rates are beyond their control.
“It is not about pump and pageantry, but it is how is the business organized. What kind of structure could occasion a recovery of the bank? As for interest rate, the least said about it, the better.”
“Because when interest rates are at that level, the banks don’t like that either, because the probability of default also increases, “
