Gas
Nigerian energy sector requires domestic funding and new exploration
Industry leaders meeting in Lagos have emphasized the urgent need for domestic financing and expanded exploration to sustain Nigeria's oil and gas sectors.
Key points
- Oando urges creation of a robust domestic financing ecosystem.
- NAPE reports a decline in oil reserves and calls for frontier exploration.
- Neconde highlights the necessity of a fully liberalised gas market.
- TotalEnergies notes recent final investment decisions in gas projects.
Industry participants gathered in Lagos to evaluate capital hurdles, dwindling hydrocarbon assets, and regulatory changes required to drive the oil, gas, and power industries forward, according to the Nigerian Tribune.
During the discussions, Alero Balogun of Oando Plc explained that overseas financing institutions are increasingly hesitant to back African petroleum projects. Balogun stated that Nigeria must cultivate a strong domestic funding framework to bridge this gap, as international capital markets no longer match the long-term needs of the region's energy sector. She attributed foreign reluctance to operational risks and policy inconsistencies.
In a similar vein, Cecilia Ajayi representing the Nigerian Association of Petroleum Explorationists warned that underground inventories have fallen from thirty-nine billion barrels to thirty-seven billion barrels. Ajayi advocated for aggressive exploration in frontier zones and mature fields, suggesting that authorities should permit preliminary technical assessments before requiring heavy financial commitments like signature bonuses.
Focusing on domestic gas utilisation, Chichi Emenike of Neconde Energy Limited asserted that the domestic market must undergo complete liberalisation. Emenike noted that government-controlled pricing and weak infrastructure deter investors who require predictable cost recovery. As reported by the Nigerian Tribune, she remarked, "No investor is doing charity."
In contrast, Senan Murray from TotalEnergies described a more receptive commercial climate. Murray pointed to the firm's recent final investment decisions on the Ubeta and Ima gas ventures alongside the Nigerian National Petroleum Company Limited, noting that these projects incorporate modern anti-flaring and methane monitoring technologies.
Why it matters
The discussions highlight the structural vulnerabilities facing Nigeria's energy economy. According to World Bank figures provided by the CEII, fuel exports accounted for 85.9 percent of the nation's merchandise exports in 2025, vastly exceeding the global average of 9.5 percent. This heavy reliance underscores the urgency of replenishing reserves and unlocking domestic gas to diversify and stabilise revenues.
Furthermore, with national electricity use standing at just 140.6 kWh per person in 2024—against a global average of 3,708.5 kWh—and grid access covering only 62.5 percent of the population, attracting reliable long-term capital is critical for industrialisation and broader energy access.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
72.9% of electricity in Nigeria came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
