Nigeria’s oil reserves no longer enough to win investors – PENGASSAN

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Nigeria may possess one of Africa’s largest hydrocarbon endowments, but the Petroleum and Natural Gas Senior Staff Association of Nigeria has warned that the country can no longer rely on the sheer size of its oil and gas reserves to win the increasingly competitive battle for global investment capital.

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PUNCH Online reports that Nigeria has about 37.01 billion barrels of proven oil and condensate reserves and 215.19 trillion cubic feet of natural gas reserves, making it one of Africa’s most resource-rich petroleum countries.

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The union said Nigeria was competing with other oil-producing jurisdictions for a limited pool of global capital and must therefore offer investors competitive fiscal and commercial terms, improved security, predictable regulations and efficient project execution.

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This was contained in a communiqué issued on Friday at the end of the three-day 5th PENGASSAN Energy and Labour Summit, held in Abuja from August 19 to 21, 2026.

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The communiqué was jointly signed by the PENGASSAN President, Festus Osifo, and the General Secretary, Jerry Amah.

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The summit, with the theme, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” brought together government officials, regulators, oil companies, investors, organised labour and other industry stakeholders.

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It focused on the regulatory, commercial and labour conditions required to attract investment, raise production and sustain employment in Nigeria’s petroleum industry.

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The union said, “The Summit recognised the direct relationship between regulatory certainty, investment, projects, production, government revenue and sustainable employment.

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“Nigeria competes with other jurisdictions for finite global capital and cannot rely solely on the size of its hydrocarbon resources to attract investment. The country must offer competitive fiscal and commercial terms, security, predictable regulation and efficient project execution.”

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PENGASSAN urged the Federal Government and petroleum regulators to consolidate recent reforms and incentives that had stimulated renewed investments and Final Investment Decisions, stressing that Nigeria must remain internationally competitive to attract long-term energy capital.

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The warning comes as Nigeria continues efforts to reverse years of declining investment and production in its oil and gas sector. Although the Petroleum Industry Act, signed into law in 2021, was expected to provide a clearer legal and commercial framework, industry stakeholders have continued to raise concerns about regulatory uncertainty, policy changes, approval delays, security challenges and the high cost of operating in the country.

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PENGASSAN acknowledged the PIA as a major milestone but argued that the existence of legislation alone was insufficient to attract the long-term capital required for multi-billion-dollar petroleum projects.

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“The long-term capital required for oil and gas development depends not only on the existence of laws and regulations, but on their predictability, durability, transparency and consistent application,” the union said.

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It consequently called for greater stability in Nigeria’s fiscal and regulatory environment, urging government institutions to avoid abrupt policy changes and ensure adequate consultation with industry stakeholders before introducing major changes.

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The union also demanded that the recent executive orders issued by President Bola Tinubu to improve investment conditions in the petroleum sector should be transmitted to the National Assembly as an executive bill to amend the PIA.

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It said, “The recent ‘Executive orders’ issued by the President and Commander-in-Chief should be submitted to the National Assembly as an executive bill to amend the PIA. This should be transparently done, and all stakeholders in the industry must be carried along.”

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The union argued that incorporating the reforms into the petroleum law would provide greater certainty and durability for investors whose projects often require billions of dollars and several years to develop.

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PENGASSAN further urged the government to rehabilitate and expand critical energy infrastructure while addressing insecurity and other challenges that increase investment risks and operating costs.

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It stated, “They should also prioritise the rehabilitation and development of critical energy infrastructure and address wider issues, including security and other factors that increase the risks and costs associated with investment.”

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The union called for what it described as smarter and outcome-driven regulation, supported by digitalisation, clear timelines and faster approvals.

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According to the communiqué, “Regulatory effectiveness should ultimately be measured by its ability to facilitate responsible investment, increase production, generate revenue, protect workers and create sustainable national value.”

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The summit also welcomed the Nigerian Upstream Petroleum Regulatory Commission’s commitment to continually review its regulations and maintain transparent and time-bound licensing processes.

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Beyond crude oil, PENGASSAN said Nigeria must urgently convert its vast gas reserves into industrial and economic value.

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The union noted that Nigeria has more than 215 trillion cubic feet of proven gas reserves but continues to struggle with inadequate infrastructure, commercially sustainable pricing, bankable offtake arrangements and creditworthy customers.

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It called for an integrated approach covering upstream gas supply, processing facilities, pipelines, storage and infrastructure for LNG, LPG and CNG.

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The union also pushed for accelerated gas utilisation in power generation, manufacturing, transportation, fertiliser production, petrochemicals and domestic cooking, while reducing gas flaring and methane emissions.

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On refining, the union urged sustained policies to expand domestic processing capacity and reduce the economic inefficiency of exporting crude oil while importing refined petroleum products.

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It specifically stressed the need to protect investments in domestic refineries, including the Dangote Refinery and Waltersmith refinery, while encouraging greater value addition through petrochemicals and gas processing.

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On the industry’s broader outlook, PENGASSAN said Nigeria’s fundamental problem was not a shortage of resources, laws or human capacity but the failure to convert these advantages into bankable projects and measurable outcomes.

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“The Summit observed that Nigeria already possesses significant resources, laws, institutions, policies and human capacity. The critical challenge is the ability to convert these advantages into bankable projects and measurable outcomes,” it said.

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It added, “Policies must translate into implementation; resources into projects; projects into production; production into value; and investment into sustainable jobs and national prosperity.”

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PENGASSAN therefore called for stronger collaboration among the government, regulators, NNPC Limited, operators, investors, organised labour and host communities, insisting that Nigeria’s petroleum industry would ultimately be judged not by the quantity of hydrocarbons beneath the ground but by the value generated from them.

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“The strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people,” the union said.

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It added, “The opportunity is enormous. The responsibility is shared. Execution must now be the priority.”

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