Nigeria moves to turn oil, gas reserves into production, economic growth
Nigeria is shifting its oil and gas strategy from celebrating new discoveries to accelerating project development, increasing production and using its natural resources to drive industrial growth.
The policy direction was outlined by the Special Adviser to President Bola Tinubu on Oil and Gas, Olu Arowolo Verheijen, at the 44th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE 2026) in Lagos.
Speaking on November 9 at Eko Hotels and Suites, Verheijen, in a keynote address titled “From Energy Recovery to National Renewal,” said Nigeria must focus on converting its vast oil and gas resources into productive assets capable of generating revenue, creating jobs and supporting economic development.
She said the administration was addressing longstanding challenges that had slowed investments and delayed the development of petroleum resources.
According to her, such challenges include regulatory uncertainties, lengthy contracting processes, uncompetitive project economics and limited access to reliable markets.
Verheijen said the Federal Government was working with relevant ministries, regulators, the Nigerian National Petroleum Company Limited (NNPC), international oil companies and other industry stakeholders to create a more attractive investment environment.
She stressed that the success of the reforms would depend on their ability to encourage investment, accelerate project execution and deliver sustainable production growth.
One example she highlighted was the IMA gas field, discovered in 1973, which reached Final Investment Decision (FID) in September 2026, more than five decades after its discovery.
She said the development demonstrated the need to remove institutional and commercial bottlenecks that prevent discoveries from translating into economic benefits.
Verheijen also identified the Ubeta and Bonga North projects, which reached FID in 2024, as evidence of growing investment momentum in Nigeria’s upstream petroleum sector.
She said the priority was to sustain the momentum, ensure timely project delivery, improve production from existing assets and accelerate exploration to replenish the country’s reserves.
**Exploration, local capacity and technology**
Addressing the conference theme, *“Unlocking More Barrels: Driving Reserves Growth through Exploration, Local Capabilities, and Adaptive Technology,”* Verheijen identified exploration, indigenous capacity and technology as critical to the industry’s future.
She said Nigeria needed continuous exploration, improved geological data and effective development plans to sustain production and increase reserves.
She added that improved reservoir management, additional drilling and enhanced oil recovery could also help increase output from existing fields.
On local content, Verheijen said the growing participation of indigenous companies offered opportunities to expand production, particularly in onshore and shallow-water operations.
However, she stressed that local participation must go beyond ownership to include technical competence, good corporate governance, financial strength and responsible management of oil and gas assets.
She said Nigerian engineers, technology providers, fabrication companies and service firms must develop the capacity to compete internationally.
The Special Adviser also identified advanced seismic interpretation, reservoir modelling, digital monitoring and artificial intelligence as technologies capable of improving exploration and operational efficiency.
According to her, technology adoption should deliver measurable results through lower operating costs, improved recovery, reduced downtime and safer operations.
**Gas critical to industrial development**
Verheijen said Nigeria’s oil and gas resources must be integrated into a broader economic strategy, with gas playing a major role in electricity generation, manufacturing, agriculture and industrial development.
She noted that the development of gas resources depended not only on production but also on the availability of reliable markets and customers capable of paying for supplies.
She identified outstanding debts in the electricity value chain, inadequate metering, weak revenue collection and unreliable payments as some of the challenges affecting sustainable gas supply.
According to her, addressing these problems is essential to encouraging investment in gas infrastructure and supporting industrial growth.
She also stressed the need to protect vulnerable electricity consumers through targeted support while ensuring commercially sustainable arrangements for energy suppliers.
**Attracting investment and strengthening competitiveness**
Verheijen said Nigeria must improve its competitiveness to attract long-term investments in the global oil and gas industry.
She identified predictable regulations, credible fiscal policies, reliable infrastructure and efficient project execution as important factors that investors consider when choosing where to commit capital.
She said Nigeria must build an investment environment capable of sustaining projects even during periods of declining international oil prices.
The Special Adviser further called for stronger links between oil and gas production and the wider economy.
She said Nigeria must manufacture more of what it consumes, process more of what it produces and supply more products to neighbouring countries.
According to her, the benefits of energy-sector reforms should be measured not only by increased oil production and gas supply but also by job creation, industrial development, technology transfer and improved government revenue.
She identified reserves growth, revenue generation, reliable energy supply and responsible operations as important measures of progress.
Verheijen said sustained collaboration between government and industry stakeholders would be necessary to achieve the country’s energy and economic objectives.
She maintained that Nigeria’s future in the global energy market would depend not simply on its natural resources but on its ability to develop them efficiently and translate them into lasting economic benefits.
By Kunle Odusola-Stevenson
Public Relations and Energy Communication Strategist
