The Petroleum and Natural Gas Senior Staff Association of Nigeria has sounded the alarm that the country can no longer depend on its vast oil and gas reserves to win the fierce global competition for investment capital.
Nigeria holds approximately 37.01 billion barrels of proven crude oil and condensate reserves along with 215.19 trillion cubic feet of natural gas reserves, ranking it among the most resource-endowed energy producers in Africa.
However, the senior staff union cautioned that Nigeria must contend with other hydrocarbon-producing nations for limited global funds by offering attractive commercial and fiscal frameworks, robust security, dependable regulations, and swift execution of energy projects.
The declaration was contained in a communiqué released on Friday at the end of the 5th PENGASSAN Energy and Labour Summit held in Abuja from August 19 to 21, 2026, jointly signed by the PENGASSAN President, Festus Osifo, and the General Secretary, Jerry Amah.
Under the theme, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” the summit convened government officials, regulatory bodies, operating energy firms, investors, and organised labour to deliberate on the critical conditions required to attract capital, expand oil output, and secure sustainable jobs.
The union said, “The Summit recognised the direct relationship between regulatory certainty, investment, projects, production, government revenue and sustainable employment.”
It added, “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 regulatory authorities to consolidate recent fiscal incentives that have triggered new Final Investment Decisions, noting that the country must remain globally competitive to retain long-term capital.
The union acknowledged that while the Petroleum Industry Act 2021 was a landmark legislative milestone, mere legislation cannot drive the massive capital inflows required for multi-billion-dollar investments.
The union said, “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 association demanded greater stability across the regulatory and fiscal landscape, urging public institutions to desist from sudden policy disruptions and consult thoroughly with industry operators before introducing major changes.
The union also pushed for the executive orders issued by President Bola Tinubu to be transmitted to the National Assembly as an executive bill to amend the PIA.
It stated, “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 explained that embedding these incentives into primary legislation would provide institutional permanence and certainty for investors managing multi-year energy ventures.
The union called on the Federal Government to prioritize the rehabilitation and development of critical energy infrastructure while addressing security risks and other operational bottlenecks that inflate production costs.
It stated, “They should also prioritise the rehabilitation and development of critical energy infrastructure and address wider issues, including security and other factors that increase the risks and costs associated with investment.”
Advocating outcome-oriented and agile regulations driven by digital platforms, defined timelines, and faster approvals, the union said, “Regulatory effectiveness should ultimately be measured by its ability to facilitate responsible investment, increase production, generate revenue, protect workers and create sustainable national value.”
The summit commended the Nigerian Upstream Petroleum Regulatory Commission for committing to continuous regulatory reviews and transparent, time-bound licensing rounds.
Beyond crude oil, PENGASSAN stressed the urgent need to unlock economic value from the nation’s vast natural gas resources, pointing out that despite holding over 215 trillion cubic feet of gas, the sector continues to battle inadequate midstream facilities, non-commercial pricing, weak offtake deals, and unviable buyers.
It recommended an integrated framework encompassing upstream gas development, processing plants, pipeline transportation, and infrastructure for Liquefied Natural Gas, Liquefied Petroleum Gas, and Compressed Natural Gas.
The union also called for accelerated gas utilization across power generation, industrial manufacturing, transportation, fertilizer production, petrochemicals, and domestic cooking, while halting gas flaring and reducing methane emissions.
On local refining, PENGASSAN demanded sustainable policy support to expand domestic processing capacity and eliminate the economic inefficiency of exporting crude oil while importing refined fuels. It emphasized the protection of local refining investments, including the Dangote Refinery and the Waltersmith refinery, alongside greater value addition in petrochemicals.
Reviewing the sector’s overall direction, the union stated, “The Summit observed that Nigeria already possesses significant resources, laws, institutions, policies and human capacity. The critical challenge is the ability to convert these advantages into bankable projects and measurable outcomes,”.
It added, “Policies must translate into implementation; resources into projects; projects into production; production into value; and investment into sustainable jobs and national prosperity.”
PENGASSAN urged closer collaboration among the government, regulatory agencies, NNPC Limited, operating companies, investors, organized labour, and host communities.
The union stated, “The strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people,”.
It concluded, “The opportunity is enormous. The responsibility is shared. Execution must now be the priority.”
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