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Nigeria’s energy challenge shifts from asset ownership to access, financing – NAEC – EnviroNews
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The Association of Energy Correspondents of Nigeria (NAEC) has identified limited access to financing, technology, infrastructure and markets as major constraints to Nigeria’s efforts to maximise its oil and gas resources.
The association said that owning oil and gas assets no longer guaranteed commercial success, stressing the need to address structural barriers preventing indigenous operators from converting acquired assets into production, electricity and economic prosperity.
This position was contained in the official communiqué issued at the 2026 NAEC Energy Conference, themed “Access to Assets: Empowering Players and Driving Growth”, held on October 8 in Lagos.
The conference brought together policymakers, regulators, indigenous and international oil and gas operators, service providers and industry associations to examine challenges limiting investment and growth across Nigeria’s energy sector.
According to the communiqué, meaningful participation in the industry requires access to capital, technology, infrastructure, markets, skilled personnel and predictable regulatory frameworks.
It noted that the challenges had become more pressing following the divestment of assets by international oil companies and successive licensing rounds that had increased responsibilities for indigenous exploration and production companies.
However, high entry costs, financing constraints, lengthy regulatory approvals and limited access to evacuation infrastructure and technology continued to restrict technically qualified indigenous operators.
The association urged the Federal Government to remove structural barriers by establishing transparent, predictable and commercially viable processes for asset allocation, licensing and divestment.
It also called on regulators to strengthen policy consistency, implement existing laws transparently, reduce administrative delays and ensure timely decisions to support long-term investments.
Speaking at the conference, Austin Avuru, Executive Chairman of AA Holdings, said acquiring oil and gas assets without adequate investment, infrastructure and execution capacity would not translate into increased production.
Avuru, who recalled the challenges involved in developing evacuation pipelines, stressed that converting acquired assets into productive operations required access to gas, infrastructure and, particularly, financing.
He also urged indigenous operators to strengthen corporate governance, financial management and long-term business strategies, integrating exploration, reserve replacement, production growth and technological innovation.
On financing, the communiqué warned that declining international funding for African hydrocarbons, high borrowing costs and poor project execution could undermine Nigeria’s ambition of producing three million barrels of crude oil daily unless domestic financing mechanisms improved.
Mrs. Alero Balogun, General Manager, Corporate Communications, Oando Plc, said international lenders were withdrawing from African energy investments because of operational risks, policy inconsistencies and regulatory uncertainty.
She stressed that Nigeria needed to de-risk its operating environment and mobilise domestic capital to expand asset access for indigenous operators.
The conference consequently urged the government and financial institutions to expand long-term funding opportunities and encourage banks, pension funds and other institutional investors to explore commercially viable investments in the sector.
Dr. Obinna Ezeobi, General Manager, Corporate Communications, Nigerian Content Development and Monitoring Board (NCDMB), said more than 130 indigenous companies had accessed over $400 million through the Nigerian Content Intervention Fund.
He also highlighted Project 100, an initiative designed to support high-potential indigenous companies through capacity development, improved market access and financial linkages.
On local content development, the communiqué noted that industry participation had increased from about five per cent in 2010 to approximately 61 per cent.
It, however, stressed that the next phase of local content development should prioritise technological ownership and global competitiveness through local manufacturing, research and development, equipment certification and technology transfer.
Dr. Joan Faluyi, Publicity Secretary of the Petroleum Technology Association of Nigeria (PETAN), said indigenous service companies should be empowered to undertake more operational responsibilities as local operators acquired additional oil and gas assets.
On gas development, the conference identified Nigeria’s estimated 215 trillion cubic feet of proven gas reserves as a major opportunity for electricity generation, industrialisation, fertiliser production, petrochemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG) and compressed natural gas (CNG).
However, it identified infrastructure deficiencies, uncertain commercial arrangements, payment risks and inadequate market access as major obstacles to investment.
The communiqué called for accelerated development of strategic gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) and Obiafu-Obrikom-Oben (OB3) pipelines, alongside coordinated investments to advance the Federal Government’s Decade of Gas initiative.
On electricity, the conference maintained that Nigeria’s power supply challenges could not be resolved by increasing generation capacity alone.
It said improvements were required across the entire electricity value chain, including gas supply, transmission, distribution, maintenance, metering, revenue collection and payment security.
Distribution companies (DisCos) were urged to accelerate metering, reduce technical and commercial losses and improve billing transparency.
The conference also called for reliable crude oil supply and competitive pricing to support domestic refining, while urging policymakers to balance affordable retail prices with the commercial sustainability of refiners.
It further advocated harmonised federal and state regulations to support investments in mini-grids, solar energy, battery storage and hybrid power systems under the Electricity Act 2023.
On community development and capacity building, the association emphasised the importance of host community development and sustained investment in human capital through initiatives such as the NAPE Academy.
It also called for independent and factual energy reporting, describing transparency and credible information as essential to strengthening investor confidence and supporting sustainable growth across Nigeria’s energy industry.