Nigeria’s Oil Reserves No Longer Enough to Win Investors

Nigeria can no longer depend on the size of its oil and gas reserves to attract global investment, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned.

The union said Nigeria must compete more effectively for the limited pool of international capital by offering investors competitive fiscal terms, improved security, predictable regulations and efficient project execution.

PENGASSAN made the submission in a communiqué issued on Friday at the end of its 5th Energy and Labour Summit, held in Abuja from August 19 to 21, 2026.

The communiqué was signed by the union’s President, Festus Osifo, and General Secretary, Jerry Amah.

Nigeria currently has about 37.01 billion barrels of proven oil and condensate reserves and 215.19 trillion cubic feet of proven natural gas reserves, placing it among Africa’s most resource-rich petroleum countries.

However, PENGASSAN said resource abundance alone was no longer sufficient to attract the long-term capital required to develop the industry.

The union noted that Nigeria was competing with other oil-producing countries for investment and must therefore provide a stable and commercially attractive operating environment.

It said there was a direct relationship between regulatory certainty, investment, production, government revenue and sustainable employment.

PENGASSAN acknowledged the Petroleum Industry Act (PIA) as an important milestone but stressed that legislation alone could not guarantee investment.

According to the union, investors require regulations that are predictable, transparent, durable and consistently applied, particularly because major oil and gas projects often require billions of dollars and several years to develop.

The union urged the Federal Government and petroleum regulators to consolidate recent reforms and incentives that have encouraged new investments and Final Investment Decisions.

It also called for President Bola Tinubu’s recent executive orders aimed at improving investment conditions in the petroleum sector to be submitted to the National Assembly as an executive bill to amend the PIA.

PENGASSAN further demanded greater investment in critical energy infrastructure, improved security and faster regulatory approvals.

The union called for digitalised and outcome-driven regulation, with clear timelines for approvals and licensing processes.

Gas and Refining

Beyond crude oil, PENGASSAN urged Nigeria to accelerate the development of its huge gas reserves by addressing infrastructure gaps, pricing challenges and weak offtake arrangements.

It called for increased gas utilisation in power generation, manufacturing, transportation, fertiliser production, petrochemicals and domestic cooking, while reducing gas flaring and methane emissions.

On refining, the union advocated sustained policies to expand domestic processing capacity and reduce Nigeria’s dependence on imported refined petroleum products.

It also urged the government to protect investments in domestic refineries, including the Dangote Refinery and Waltersmith Refinery, while promoting petrochemical and gas-processing industries.

PENGASSAN said Nigeria’s major challenge was no longer a lack of resources, laws or expertise but the failure to convert those advantages into bankable projects and measurable economic outcomes.

The union insisted that Nigeria’s petroleum sector should ultimately be judged by the projects delivered, jobs created, value generated and prosperity produced for citizens—not merely by the quantity of hydrocarbons beneath the ground.