Nigeria’s ambition to nearly double oil production to 3 million barrels a day by 2030 is encountering significant obstacles, with energy executives highlighting capital constraints and inadequate pipeline infrastructure as critical barriers, despite the country’s vast untapped oil reserves. The concerns were raised at the Nigeria Energy Leaders Summit 2026 in Lagos, organized by The Energy Year, where industry stakeholders emphasized that geological potential is no longer the primary limitation—funding, equipment, and regulatory credibility now pose the greatest challenges.
Wole Ogunsanya, chairman of the Petroleum Technology Association of Nigeria and CEO of Geoplex Drillteq, warned that indigenous oil producers, which have acquired assets from international majors, face severe funding difficulties. He cited Seplat Energy, which acquired ExxonMobil’s shallow-water assets, and Renaissance Africa Energy, which expanded its rig count to 23 to develop Shell’s onshore and shallow-water fields. Ogunsanya noted that Seplat’s London Stock Exchange listing provides it with a capital market advantage that many local firms lack.
The lack of drilling equipment is exacerbating the funding gap. Ogunsanya highlighted the urgent need for more rigs in swamp and deepwater areas, as major projects by ExxonMobil’s Esso, TotalEnergies, and Chevron are set to commence before year-end. He called on the government to incentivize non-associated gas drilling and mandate gas volumes tied to oil production, stressing that Nigeria’s credibility must improve to attract investment.
Muazu Magaji, COO of Transoceanic Energy Group, described securing $2.5 billion for a floating liquefied natural gas project as the company’s most significant challenge. He referenced Dangote Refinery’s reliance on internal funds after struggling to secure external financing, underscoring the broader financing crisis in Nigeria’s energy sector. Magaji linked the country’s trillion-dollar economic ambitions directly to energy output, stating, “The GDP of every country is directly proportional to its energy consumption.”
Emeka Onwochei, technical director at Navante Oil & Gas, criticized the absence of local gas infrastructure for distribution and precision fabrication, pushing operators to seek alternatives in Angola. He urged multi-year procurement commitments to justify domestic capacity development. Josephine Udonsak, a partner at Dentons ACAS-Law, called for stronger partnerships among operators, service firms, and regulators, alongside government support to de-risk projects.
Ogunsanya also urged the Nigerian Upstream Petroleum Regulatory Commission to prioritize technical expertise when awarding oil blocks, arguing that misallocation, not a lack of skilled Nigerians, has caused underperformance. He cited NEPL’s success in boosting output on a joint-venture asset and warned regulators to reclaim non-performing licenses ahead of an upcoming bid round, stating, “If you cannot produce the asset, they are going to take it from you.”
The challenges underscore the broader implications for Nigeria’s energy sector and economy. With the government’s 2028 deadline for a full willing-buyer, seller gas market and ongoing infrastructure investments, the path to achieving oil and gas targets remains fraught. Industry leaders stress that addressing capital, infrastructure, and regulatory gaps is critical to unlocking Nigeria’s energy potential and supporting its economic growth.
Capital, pipelines become new battleground for Nigeria’s oil growth