Sapphire's Role in Transitioning Nigeria's Energy Future

The Challenge

Nigeria possesses over 200 trillion cubic feet of proven natural gas reserves, the largest in Africa, yet the absence of robust pipeline infrastructure has left much of this resource underexploited. Historically, reliance on diesel and petrol generators has imposed significant financial burdens on businesses, contributed to severe air pollution, and heightened exposure to the volatility of global fuel markets. Recent policy shifts, notably the elimination of the fuel subsidy and the deregulation of diesel and petrol prices, have rapidly transformed the market landscape. In this context, PEL operates amid persistent inflationary pressures, currency volatility linked to dollar-denominated obligations, and the ongoing necessity for capital investment in operational assets such as skids. For Sapphire, the primary challenge lies in structuring the UK investment through Impala Energy Holdings LLP in full compliance with UK regulatory standards, while safeguarding the interests of UK investors.

The Solution

PEL addresses Nigeria’s infrastructure deficit through a “virtual pipeline” solution. By utilising high-pressure mobile compressed natural gas (CNG) tube modules (known as skids) mounted on flatbed trucks, PEL is able to transport CNG from its facilities (such as the Ikorodu plant) directly to off-grid clients nationwide. This model replicates traditional pipeline delivery without requiring permanent infrastructure investment.

Sapphire serves as the FCA-authorised manager for the UK holding company Impala Energy Holdings LLP. As an FCA-regulated operator, we exercise rigorous skill, care, and diligence in our oversight of PEL. Oversight for this initiative is provided by Sapphire's partner, Ben McMeekin, whose background in engineering and specialist expertise in investment management ensures full transparency and strict adherence to compliance standards throughout the process..

“It was a real pleasure to meet CEO Lanre Odusote and the Powergas Ebedei Limited team at their offices in Lagos last week. We were impressed by the company’s operations and the vital role compressed natural gas plays in Nigeria’s energy transition — reducing diesel use and supporting a cleaner, more sustainable future.

 

Thank you to the Powergas team for hosting us, and to Impala Energy Holdings LLP for having appointed Sapphire to assist with the regulatory requirements in UK linked to this investment. A strong example of sustainability in action."

 

Vasiliki Carson, CEO @ Sapphiire

The Results

Sapphire’s approach delivers UK-regulated capital as a catalyst for global development. Each CNG skid deployment delivers material cost reductions for clients and demonstrable emissions abatement, directly replacing diesel usage. PEL’s initiatives substantially enhance air quality and reduce energy expenditure for businesses in Nigeria. Their technology is often pivotal, determining whether manufacturers can sustain operations or scale successfully.

The Presidential CNG Initiative launched by the Nigerian government has created a powerful backdrop for transformation, leveraging local resources to reduce costs and expand energy access nationwide. In just one year, national CNG conversion capacity surged by over 2,500%, underscoring the sector’s immense commercial promise. Sapphire’s oversight of the UK Limited Partnership seeks to ensure  full legal and accounting transparency through the UK holding company governance, enabling UK capital to deliver significant, measurable impact abroad. This seamless blend of careful stewardship and tangible results is at the heart of Sapphire’s philosophy. We are proud to be working with Impala Energy and A.P. Moller Capital.

Next Steps

If you would like advice on setting up an investment fund, such as a GP/LP fund or an EIS fund, or if you need an FCA authorised operator and manager to manage a fund, or need pricing and options, contact us, and we will be in touch right away.

Disclaimer:
Sapphire Capital Partners LLP ("Sapphire") is authorised and regulated by the Financial Conduct Authority (FRN 565716).  The case study above is illustrative only and does not represent investment performance or future outcomes and the content on this webpage is intended solely to explain Sapphire’s fund-management and advisory services. It is not a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and does not constitute investment advice, an offer, or an inducement to engage in any regulated investment activity.  Nothing on this page should be interpreted as a recommendation regarding any investment, fund, scheme or structure. Any person considering an investment should obtain independent financial, legal and tax advice.  Investments in start-ups, early-stage businesses and venture capital funds involve high risks, including the risk of losing all capital invested, illiquidity, and dilution. Tax treatments, including SEIS/EIS reliefs, depend on personal circumstances and may change.  Communications with Sapphire’s staff are for general information only and should not be relied upon to make investment decisions.