Key points
- Indigenous participation rises with nearly 100 Nigerian firms active in upstream sector
- Nigeria targets zero gas flaring by 2030, net-zero emissions by 2060
- Strong investor appetite as 2025 bid round attracts nearly 300 applicants
Main story
Nigeria’s oil and gas sector is witnessing a significant transformation, driven by increasing local participation, evolving climate commitments, and renewed investor confidence, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said.
Speaking at the Offshore Technology Conference 2026 in Houston, United States, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Mrs Oritsemeyiwa Eyesan, said indigenous companies are playing a more prominent role in the industry.
“Today, nearly 100 Nigerian companies are operating in the sector. That is phenomenal,” she said, highlighting the growing capacity of local operators in upstream activities.
Eyesan noted that Nigeria is also making measurable progress in its energy transition agenda, with gas flaring reduced to below 10 per cent. She reaffirmed the country’s commitment to eliminating gas flaring by 2030 and achieving net-zero emissions by 2060.
According to her, the government is shifting from punitive measures to value creation by commercialising flare gas for energy use.
“We are not just penalising flaring, we are commercialising it,” she said, adding that the initiative has the potential to generate up to three gigawatts of electricity.
She further described the Petroleum Industry Act as a major turning point for the sector, citing improved regulatory clarity and enhanced investor confidence. She emphasised that continuous policy adjustments are being implemented to maintain competitiveness in the global energy market.
Eyesan disclosed that the 2025 oil bid round attracted nearly 300 applicants competing for about 50 assets, signalling strong investor interest in Nigeria’s hydrocarbon resources.
In his remarks, the Chairman of the Petroleum Technology Association of Nigeria, Mr Wole Ogunsanya, said Nigeria’s presence at the global energy forum reflects the industry’s commitment to boosting production and strengthening energy security.
He added that ongoing reforms are positioning the country towards increased refining capacity, aimed at reducing reliance on imported petroleum products.
The issues
Nigeria’s oil and gas sector has long grappled with low local participation, regulatory uncertainty, gas flaring, and heavy dependence on fuel imports. At the same time, global pressure for energy transition and climate compliance continues to reshape investment patterns in fossil fuels.
What’s being said
Industry leaders say reforms under the Petroleum Industry Act, combined with increased indigenous participation and gas commercialisation efforts, are repositioning Nigeria as a more competitive and attractive investment destination.
What’s next
The government is expected to sustain policy reforms, deepen gas utilisation initiatives, and attract further investments through future bid rounds. Expansion in refining capacity and adoption of alternative fuels such as compressed natural gas are also anticipated.
Bottom line
With rising local participation, stronger policy frameworks, and renewed investor interest, Nigeria’s oil and gas sector is entering a new phase of growth—though sustaining momentum will depend on consistent reforms and effective execution.
