NAEC: Nigeria’s Energy Challenge Lies in Asset Access, Not Resources
Nigeria’s energy sector is being held back not by a shortage of oil, gas or power assets, but by limited access to financing, infrastructure and investment opportunities, the Association of Energy Correspondents of Nigeria (NAEC) has said.
The association made this position known in its communiqué issued after its 2026 Energy Conference, themed “Access to Assets: Empowering Players and Driving Growth”, held in Lagos on October 8, 2026.
The conference, which attracted policymakers, regulators, indigenous and international operators, service providers and industry associations, identified access to capital, technology, infrastructure, markets, skilled personnel and predictable regulation as critical requirements for meaningful participation in the energy sector.
According to the communiqué, indigenous exploration and production companies have assumed greater responsibilities following the divestment of assets by international oil companies and the opening of new oil and gas blocks through successive licensing rounds.
However, high entry costs, financing difficulties, lengthy regulatory approvals and limited access to evacuation infrastructure and technology continue to constrain 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, while ensuring qualified indigenous companies have fair opportunities.
It also called on regulators to improve policy consistency, implement existing laws transparently, reduce administrative delays and take timely decisions to encourage long-term investments.
Speaking at the conference, the Executive Chairman of AA Holdings, Austin Avuru, said acquiring oil and gas assets without adequate investment, infrastructure and operational capacity would not translate into increased production.
Recalling the challenges involved in developing evacuation pipelines, Avuru stressed the importance of access to gas, infrastructure and financing in converting acquired assets into producing fields.
The communiqué also urged indigenous operators to strengthen corporate governance, financial management and long-term business strategies, particularly in exploration, reserve replacement, production growth and technological innovation.
On financing, NAEC 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 without stronger domestic financing arrangements.
The General Manager, Corporate Communications, Oando Plc, Mrs Alero Balogun, attributed the reluctance of international lenders to invest in African energy projects to operating risks, policy inconsistencies and regulatory uncertainty.
She stressed the need for Nigeria to improve its operating environment and mobilise domestic capital to expand financing opportunities for indigenous operators.
The communiqué consequently urged the government and financial institutions to provide long-term funding and encourage banks, pension funds and other institutional investors to participate in commercially viable energy projects.
Also speaking, the General Manager, Corporate Communications, Nigerian Content Development and Monitoring Board (NCDMB), Dr Obinna Ezeobi, disclosed that more than 130 indigenous companies had accessed over $400m through the Nigerian Content Intervention Fund.
He also highlighted Project 100, which supports high-potential indigenous companies through capacity development, 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, called for a shift towards technological ownership and global competitiveness through local manufacturing, research and development, equipment certification and technology transfer.
The Publicity Secretary of the Petroleum Technology Association of Nigeria (PETAN), Dr Joan Faluyi, called for greater empowerment of indigenous service companies as local operators assume control of more oil and gas assets.
On gas development, NAEC highlighted Nigeria’s estimated 215 trillion cubic feet of proven gas reserves, noting their potential to support electricity generation, industrialisation, fertiliser production, petrochemicals, liquefied natural gas, liquefied petroleum gas and compressed natural gas.
However, it identified inadequate infrastructure, uncertain commercial arrangements, payment risks and limited market access as major obstacles to investment.
The association called for accelerated development of strategic gas infrastructure, including the Ajaokuta-Kaduna-Kano and Obiafu-Obrikom-Oben pipelines, alongside coordinated investments to advance the Federal Government’s Decade of Gas agenda.
On electricity, the communiqué maintained that improving supply required more than increasing generation capacity, stressing the need for simultaneous improvements in gas supply, transmission, distribution, maintenance, metering, revenue collection and payment security.
It urged electricity distribution companies to accelerate metering, reduce commercial and technical losses and improve billing transparency.
The association also called for reliable crude oil supply and competitive pricing to sustain domestic refining, while urging stakeholders to balance affordable retail prices with the commercial sustainability of refineries.
It further advocated harmonised federal and state regulations to support mini-grids, solar energy, battery storage and hybrid power systems under the Electricity Act 2023.
The communiqué concluded with calls for stronger host community development, investment in human capital through initiatives such as the NAPE Academy, and independent, factual journalism to promote transparency and sustain investor confidence in Nigeria’s energy sector.
