What is the Nigerian government's strategy for its oil and gas resources?

The government plans to use oil and gas resources to build a modern, diversified economy, attracting investment and increasing production.

What has been the impact of the Petroleum Industry Act (PIA)?

The PIA has provided a predictable framework for the oil and gas sector, improved security against theft, and attracted significant investment, with bid rounds accounting for about $103 billion.

Nigeria Aims to Leverage Oil Resources for Economic Diversification

President Bola Tinubu outlines a strategy to use the nation's oil and gas wealth to build a modern, diversified economy, encouraging increased investment and production.

Flat illustration of Oil barrel, Gas flare, Pipeline, Wind turbine, Storage tank

2026-10-07 · Updated 2026-10-07

President Bola Tinubu has declared Nigeria's intention to utilize its oil and gas resources to foster a modern and diversified economy. Speaking at the 5th anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), he urged industry operators to respond to government incentives and regulatory reforms with higher investment, increased production, and greater local content development.

Tinubu highlighted that his administration has addressed investor concerns regarding high operating costs, lengthy contracting processes, and fiscal term uncertainties. Measures such as 2024 tax incentives, directives on local content, and the 2025 upstream petroleum operations cost-efficiency incentive order aim to make Nigeria more competitive for long-term capital. The latest deep offshore incentive framework is designed to attract up to $50 billion in new investment, starting with the Bonga Southwest project.

The President noted that the Petroleum Industry Act (PIA), enacted five years ago, provided a predictable framework for the oil and gas sector and gave host communities a legal stake in resource ownership. He acknowledged improvements in security against oil theft and vandalism, leading to Nigeria being ranked as Africa's leading destination for upstream investment for two consecutive years.

He emphasized that the administration's goal is not to perpetuate dependence on petroleum but to leverage the sector for energy, foreign exchange, and investment needed to develop other economic areas, including agriculture, manufacturing, and digital industries. The NUPRC Chief Executive, Oritsemeyiwa Eyesan, reported that bid rounds since the PIA have accounted for approximately $103 billion in investment, with ongoing efforts to attract further capital and develop resources.

Eyesan also stated that the NUPRC has approved 120 field development plans since 2024, representing about $47.6 billion in capital and the potential to significantly increase oil and gas production. These include major projects like the Bonga North and Zabazaba-Etan developments, which had been stalled for years.

FAQ

What is the Nigerian government's strategy for its oil and gas resources?: The government plans to use oil and gas resources to build a modern, diversified economy, attracting investment and increasing production.
What has been the impact of the Petroleum Industry Act (PIA)?: The PIA has provided a predictable framework for the oil and gas sector, improved security against theft, and attracted significant investment, with bid rounds accounting for about $103 billion.