The Nigerian federal government has emphasized the need for increased private capital, infrastructure development, and skills acquisition to sustain growth in the country's oil and gas industry. This call was made at the maiden Petroleum Technology Development Fund Journal Summit 2026 in Abuja, where government officials and industry stakeholders converged to discuss the way forward. The summit highlighted the importance of stronger collaboration to expand production, develop gas infrastructure, and deepen local capacity across the petroleum value chain.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stressed the need for increased private capital, technical expertise, and innovation to unlock Nigeria's gas potential and sustain growth across the oil and gas industry. Ekpo noted that the federal government is focused on creating an enabling environment for private investment across the petroleum value chain. He cited the Petroleum Industry Act, which has established a framework for regulatory certainty and institutional governance, as a key development in this regard.
Ekpo's vision for Nigeria's gas sector is encapsulated in the Decade of Gas initiative, which aims to reposition Nigeria as a gas-powered industrial economy. Natural gas is expected to play a key role in industrialization, job creation, energy security, and economic diversification. To achieve this objective, Ekpo emphasized the need for sustained investment in gas processing, transportation, and distribution infrastructure, as well as in liquefied petroleum gas, compressed natural gas, petrochemicals, and other gas-based industries.
Ekpo acknowledged that the federal government cannot achieve this objective alone and called for deeper collaboration with private investors, financial institutions, technology providers, and other stakeholders. He identified infrastructure deficits, high financing costs, project development risks, regulatory bottlenecks, and limited access to reliable energy infrastructure as key challenges affecting private-sector participation in the sector. Ekpo also advocated for increased investment in indigenous technology, local manufacturing, and skills development to strengthen Nigeria's capacity across the petroleum value chain.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, reported that indigenous oil and gas companies now account for more than 50 per cent of Nigeria's crude oil production. Lokpobiri attributed this development to major divestment transactions involving international oil companies, which have created more opportunities for indigenous operators in the upstream sector. He noted that Nigeria's crude oil production has risen from about one million barrels per day in 2023 to more than 1.7 million barrels per day.
Lokpobiri also highlighted the increase in the number of active drilling rigs from about 14 to over 60 and noted that Nigeria has attracted more than $10 billion in foreign direct investment in recent years. However, he cautioned that rising crude oil production must be matched by improvements in infrastructure, transportation, storage, and refining capacity, as well as market competitiveness. The Dangote Petroleum Refinery was cited as an example of a development that can help address some of these challenges.
The Nigerian government's efforts to revitalize the oil and gas sector are geared towards maximizing the sector's potential to drive economic growth and development. The Petroleum Technology Development Fund Journal Summit 2026 provided a platform for stakeholders to engage and explore ways to overcome the challenges facing the sector. The outcome of the summit is expected to contribute to the development of a more vibrant and sustainable oil and gas industry in Nigeria.
Key points
- The Nigerian government seeks to create an enabling environment for private investment in the oil and gas sector.
- Indigenous oil and gas companies now account for over 50 per cent of Nigeria's crude oil production.
- Nigeria's crude oil production has risen to over 1.7 million barrels per day.
