Nigeria may possess one of Africa’s largest hydrocarbon endowments, but the Petroleum and Natural Gas Senior Staff Association of Nigeria has warned that the country can no longer rely on the sheer size of its oil and gas reserves to win the increasingly competitive battle for global investment capital.
According to PUNCH Online, ABNTV reports that Nigeria has about 37.01 billion barrels of proven oil and condensate reserves and 215.19 trillion cubic feet of natural gas reserves, making it one of Africa’s most resource-rich petroleum countries.
The union said Nigeria was competing with other oil-producing jurisdictions for a limited pool of global capital and must therefore offer investors competitive fiscal and commercial terms, improved security, predictable regulations, and efficient project execution.
This 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 the PENGASSAN President, Festus Osifo, and the General Secretary, Jerry Amah.
The summit, with the theme, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” brought together government officials, regulators, oil companies, investors, organised labour and other industry stakeholders.
It focused on the regulatory, commercial and labour conditions required to attract investment, raise production and sustain employment in Nigeria’s petroleum industry.
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.”
PENGASSAN urged the Federal Government and petroleum regulators to consolidate recent reforms and incentives that had stimulated renewed investments and Final Investment Decisions, stressing that Nigeria must remain internationally competitive to attract long-term energy capital.
The warning comes as Nigeria continues efforts to reverse years of declining investment and production in its oil and gas sector. Although the Petroleum Industry Act, signed into law in 2021, was expected to provide a clearer legal and commercial framework, industry stakeholders have continued to raise concerns about regulatory uncertainty, policy changes, approval delays, security challenges and the high cost of operating in the country.
PENGASSAN acknowledged the PIA as a major milestone but argued that the existence of legislation alone was insufficient to attract the long-term capital required for multi-billion-dollar petroleum 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 consequently called for greater stability in Nigeria’s fiscal and regulatory environment, urging government institutions to avoid abrupt policy changes and ensure adequate consultation with industry stakeholders before introducing major changes.
The union also demanded that the recent executive orders issued by President Bola Tinubu to improve investment conditions in the petroleum sector should be transmitted to the National Assembly as an executive bill to amend the PIA.
It said, “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.”
The union argued that incorporating the reforms into the petroleum law would provide greater certainty and durability for investors whose projects often require billions of dollars and several years to develop.
