Nigeria’s oil reserves dip, as gas resources rise

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Nigeria’s oil reserves recorded a marginal decline in 2026, while gas resources expanded, reflecting a gradual shift in the country’s hydrocarbon profile amid sustained production and discoveries.

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The Nigerian Upstream Petroleum Regulatory Commission disclosed this on Wednesday in Abuja, releasing the nation’s official petroleum reserves position as of January 1, 2026.

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In a statement signed by its Chief Executive, Oritsemeyiwa Eyesan, the commission said Nigeria’s total oil and condensate reserves stood at 37.01 billion barrels, while total gas reserves rose to 215.19 trillion cubic feet.

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Titled “Media Release on the National Annual Petroleum Reserves Position as at 1st January 2026,” the statement highlighted the commission’s commitment to strengthening upstream performance and ensuring long-term resource sustainability.

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Eyesan said, “The Nigerian Upstream Petroleum Regulatory Commission, in keeping with its mandate, is committed to improving upstream sector performance, enhancing the growth of oil and gas reserves, and ensuring stable production for shared prosperity via the operationalisation of the Petroleum Industry Act, 2021, and implementation of the strategic pillars of the Commission.”

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Providing a breakdown, she stated, “2P crude oil and condensate reserves stand at 31.09 billion barrels and 5.92 billion barrels, respectively, amounting to a total of 37.01 billion barrels.”

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On gas, she said, “2P associated gas and non-associated gas reserves stand at 100.21 trillion cubic feet and 114.98 trillion cubic feet, respectively, resulting in total gas reserves of 215.19 trillion cubic feet.”

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The commission added that Nigeria’s reserves life index stood at 59 years for oil and 85 years for gas, indicating the estimated duration the resources would last at current production levels.

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Explaining the changes recorded within the period, Eyesan noted that crude volumes declined slightly due to production activities during the previous year.

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“The Reserves Life Index is 59 years and 85 years for oil and gas, respectively. The reason for the slight change in 1.1.2026 oil and condensate reserves by 0.74 per cent is attributable to production in 2025 and reserves update due to field performance and technical evaluation based on subsurface studies.

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“The reason for the increase in 1.1.2026 AG and NAG reserves by 2.21 per cent is largely because reserves update is based on discoveries and the result of robust reservoir studies,” she said.

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In contrast, gas reserves increased on the back of fresh discoveries and improved technical assessments. “The reason for the increase in 1.1.2026 associated gas and non-associated gas reserves by 2.21 per cent is largely because the reserves update is based on discoveries and the result of robust reservoir studies,” Eyesan added.

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Declaring the figures official, she said, “Consequently, and in furtherance of the provisions of the Petroleum Industry Act, I hereby declare the total oil and condensate reserves of 37.01 billion barrels and total gas reserves of 215.19 trillion cubic feet as the official national petroleum reserves position as of 1st January 2026.”

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Findings show that Nigeria’s reserves position in 2026 reflects a modest shift from 2025, when total oil and condensate reserves were slightly higher at about 37.3 billion barrels, while gas reserves stood at approximately 210–211 trillion cubic feet.

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The 2026 data indicate a 0.74 per cent decline in oil reserves, largely driven by sustained production and limited new oil discoveries, while gas reserves expanded by 2.21 per cent due to ongoing exploration success and renewed focus on gas development.

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The trend underscores Nigeria’s gradual transition towards a gas-driven energy strategy, in line with the Federal Government’s “Decade of Gas” initiative and global demand for cleaner fuels.

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The Petroleum Industry Act, 2021, which restructured the upstream sector and strengthened regulatory oversight, is expected to play a key role in boosting reserves growth through improved investment climate, enhanced data management, and more transparent licensing processes.

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Despite the slight dip in oil reserves, analysts note that Nigeria’s 37 billion-barrel position still places it among Africa’s top crude holders, while its growing gas reserves reinforce its status as one of the largest gas-rich nations globally.

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