Nigeria remains prime destination for energy investments despite challenges – NUPRC

By Obas Esiedesa, Abuja

Nigeria continues to be a leading destination for energy investments in Africa, despite global and domestic challenges in the oil and gas sector, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has said.

Speaking at the 2025 Energy Correspondents Association of Nigeria (ECAN) Conference in Abuja, Komolafe noted that the implementation of the Petroleum Industry Act (PIA) 2021 and recent executive directives by President Bola Tinubu have created a more transparent and investor-friendly environment for the sector. The conference carried the theme: “Four Years of the PIA: Achievements, Gaps and the Road Ahead.”

Represented by the Head of Regulatory and Statutory Compliance, NUPRC, Kingston Chikwendu, Komolafe highlighted Nigeria’s strategic position in Africa, with about 30 percent of the continent’s oil reserves and 34 percent of its gas deposits.

“Despite the challenges that Nigeria faces, the country remains a prime destination for energy investments, offering vast opportunities for growth and development,” he said.

Komolafe emphasized that Nigeria’s 209 trillion cubic feet (TCF) of proven gas reserves, with an upside potential of over 600 TCF, position it as a key player in the global energy transition. He pointed to programmes such as the Decade of Gas, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative, which aim to eliminate routine gas flaring by 2030 while enhancing domestic energy security.

The NUPRC boss also highlighted the Commission’s achievements over the past four years, including the issuance of 19 new regulations to implement the PIA, operationalisation of the Host Community Development Trusts (HCDTs) via the HostComply platform, and deployment of digital tools like the National Data Repository (NDR) to enhance transparency.

He further noted the impact of the Project One Million Barrels Initiative, launched in 2024, which is driving Nigeria’s oil production toward 2.5 million barrels per day by 2026 through the reactivation of dormant assets and improved security measures.

Acknowledging infrastructure gaps and the ongoing global energy transition as challenges, Komolafe stressed that Nigeria’s abundant resources, competitive fiscal terms, and skilled workforce make the country a compelling investment destination.

Speaking at the event, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, represented by the Director (Gas), Ruth Mela-Nunghe, praised the PIA as a landmark legislation that has redefined governance, fiscal, and operational frameworks in Nigeria’s oil and gas industry. Ekpo noted significant strides in transparency, investor confidence, and regulatory strengthening over the past four years, while urging collective efforts to address gaps in community development and energy transition.

Earlier, John Ofkhenua, Chairman of the Energy Correspondents Association of Nigeria, said the PIA has removed long-standing uncertainties in the industry. “The PIA brought structure, transparency, and renewed confidence to our industry. There is a clearer separation of roles, stronger institutions, and a greater sense of accountability. Host communities now feel more included and engaged,” he said.

The conference provided a platform for industry stakeholders to evaluate achievements under the PIA, identify gaps, and chart the path forward for sustainable growth and investment in Nigeria’s energy sector.

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