Nigeria can't rely on oil reserves to attract investors, PENGASSAN warns
By Aboki Forex —
Nigeria can no longer depend on the size of its oil and gas reserves to win global investment, the Petroleum and Natural Gas Senior Staff Association of Nigeria has warned. The union said the country must offer competitive fiscal terms, security, predictable regulations and efficient project execution to attract finite global capital.
Nigeria holds about 37.01 billion barrels of proven oil and condensate reserves and 215.19 trillion cubic feet of natural gas, making it one of Africa's most resource-rich petroleum countries. But PENGASSAN says that is no longer enough in a competitive global market.
Summit communiqué
The warning 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. The communiqué was jointly signed by PENGASSAN President Festus Osifo and General Secretary Jerry Amah.
The summit had the theme, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry.” It brought together government officials, regulators, oil companies, investors, organised labour and other industry stakeholders.
The union said, “The Summit recognised the direct relationship between regulatory certainty, investment, projects, production, government revenue and sustainable employment. 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.”
PIA and executive orders
PENGASSAN acknowledged the Petroleum Industry Act, signed into law in 2021, as a major milestone. But it argued that legislation alone is not enough to attract long-term capital for multi-billion-dollar projects.
“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.
It called on the Federal Government to avoid abrupt policy changes and consult stakeholders before introducing major changes. The union also demanded that recent executive orders issued by President Bola Tinubu to improve investment conditions be sent to the National Assembly as an executive bill to amend the PIA.
“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,” PENGASSAN said.
Gas, refining and infrastructure
The union urged the government to rehabilitate and expand critical energy infrastructure and address insecurity and other factors that raise investment risks and operating costs. It called for smarter, outcome-driven regulation supported by digitalisation, clear timelines and faster approvals.
PENGASSAN also said Nigeria must urgently convert its vast gas reserves into industrial and economic value. The country has more than 215 trillion cubic feet of proven gas reserves but struggles with inadequate infrastructure, commercially sustainable pricing, bankable offtake arrangements and creditworthy customers.
The union pushed for integrated development of upstream gas supply, processing facilities, pipelines, storage and infrastructure for LNG, LPG and CNG. It also urged accelerated gas utilisation in power, manufacturing, transportation, fertiliser, petrochemicals and domestic cooking, while reducing flaring and methane emissions.
On refining, the union called for sustained policies to expand domestic processing capacity and reduce the economic inefficiency of exporting crude oil while importing refined petroleum products.
The summit welcomed the Nigerian Upstream Petroleum Regulatory Commission's commitment to continually review regulations and maintain transparent, time-bound licensing processes.
For Nigeria, the message is clear. Investors want certainty, not just reserves. Without predictable rules and faster approvals, the country risks losing the race for energy capital.