Nigeria has huge oil and gas reserves, but the country must do more than rely on its natural resources to attract the global investment needed to grow the petroleum industry, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned.
The union said international investors have many countries to choose from, making competition for energy investment increasingly intense. Nigeria must therefore provide a business environment that offers clear regulations, attractive commercial terms, improved security and faster project execution.
The warning was contained in a communiqué issued at the end of the fifth PENGASSAN Energy and Labour Summit held in Abuja from August 19 to 21, 2026.
The summit brought together government officials, regulators, oil companies, investors, labour representatives and other stakeholders to discuss how Nigeria can create a more stable and productive petroleum industry.
Nigeria currently has about 37.01 billion barrels of proven oil and condensate reserves and more than 215 trillion cubic feet of proven natural gas reserves. Despite this resource base, the country has struggled to attract enough long-term investment into exploration, production and infrastructure.
PENGASSAN President Festus Osifo and General Secretary Jerry Amah said the size of Nigeria’s reserves alone would not convince investors to commit billions of dollars to projects that can take years to develop.
The union stressed that investors need confidence that government policies will remain stable and that regulations will be applied consistently.
According to PENGASSAN, the Petroleum Industry Act, signed into law in 2021, was an important step toward improving the industry. However, the union said having a law in place is not enough if investors continue to face uncertainty, approval delays, insecurity and high operating costs.
The union called on the Federal Government and petroleum regulators to maintain recent reforms and incentives that have encouraged fresh investments and Final Investment Decisions in the sector.
PENGASSAN also urged the government to formally take recent petroleum-sector executive orders to the National Assembly for consideration as amendments to the Petroleum Industry Act. It argued that putting the reforms into law would make them more predictable and durable for investors.
Security and infrastructure were also highlighted as major concerns. The union called for the rehabilitation and expansion of critical energy infrastructure while tackling insecurity and other challenges that raise the cost of doing business.
It also advocated faster and more digital regulatory processes, with clear timelines for approvals and licensing.
Beyond crude oil, PENGASSAN said Nigeria must unlock the economic value of its massive gas reserves. It called for greater investment in gas processing, pipelines, storage and infrastructure supporting LNG, LPG and CNG.
The union also wants more gas used in electricity generation, manufacturing, transportation, fertiliser production and petrochemicals while efforts to reduce gas flaring and methane emissions are strengthened.
On refining, PENGASSAN called for continued support for domestic refineries, including the Dangote and Waltersmith refineries, saying Nigeria should reduce its dependence on exporting crude while importing refined petroleum products.
The union said Nigeria’s biggest challenge is no longer a lack of resources or laws, but the inability to consistently turn those advantages into profitable projects, higher production, jobs and economic growth.
It urged government, regulators, investors, oil companies, labour and host communities to work together to improve the sector.
PENGASSAN’s message was clear: Nigeria’s petroleum industry should not be judged by how much oil and gas is beneath the ground, but by how effectively those resources are transformed into investment, jobs, revenue and prosperity for Nigerians.
