NUPRC Seeks Stronger Financial Backing to Accelerate Nigeria’s Gas Development

Nigeria's ambition to unlock the full potential of its vast natural gas reserves may depend on more than policy reforms and regulatory oversight. It may require something equally critical—capital.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called on financial institutions to play a more active role in supporting oil and gas operators, particularly in expanding domestic gas production. The appeal comes as the country intensifies efforts to attract investment, drive energy transition goals and position gas as a key pillar of economic growth.

The call was made during a meeting at the Commission's headquarters in Abuja between NUPRC officials and executives of Rand Merchant Bank (RMB), one of Africa's leading financial institutions.

Speaking at the meeting, the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, stressed that financing remains one of the most important requirements for unlocking opportunities within Nigeria's upstream petroleum sector.

According to her, collaboration between regulators, investors and financial institutions will be essential in transforming the country's gas industry and achieving long-term energy objectives.

Eyesan noted that while regulatory frameworks are being strengthened to create a stable investment environment, access to funding remains a major factor that will determine the pace of growth.

“One critical element will be financing, and we are hoping that you and the financial world will be there to support us,” she said, adding that the Commission remains committed to ensuring compliance with the Petroleum Industry Act and other regulatory provisions.

The NUPRC boss revealed that investor confidence in Nigeria's oil and gas sector appears to be improving significantly. She pointed to the ongoing 2025 licensing bid round, which has reportedly attracted nearly 300 applications from both international oil companies and indigenous operators.

The level of participation, she said, reflects growing industry interest in Nigeria's upstream opportunities despite global uncertainties affecting energy markets.

Beyond investment attraction, Eyesan highlighted several initiatives aimed at balancing energy security with environmental sustainability.

Among them is the issuance of Permits to Access Flare Gas (PAFG) to 28 companies, a move designed to reduce gas wastage and encourage commercial utilization of previously flared gas resources.

She also disclosed that the Commission is pursuing a target of reducing fugitive methane emissions by 60 percent before 2031 as part of broader efforts to align Nigeria's petroleum industry with global environmental standards.

Responding on behalf of Rand Merchant Bank, Head of Oil and Gas Coverage, Jonathan Ross, reaffirmed the bank's interest in supporting Nigeria's energy sector.

Ross described gas development as a strategic priority for the financial institution, noting that large-scale infrastructure projects could unlock significant economic opportunities for the country.

He specifically identified the OB3 Gas Pipeline project as one of the critical infrastructure assets capable of expanding gas supply, improving market access and stimulating industrial growth.

The bank also acknowledged recent reforms within the Nigerian petroleum sector, including regulatory improvements and enhanced security conditions in host communities.

According to Ross, these developments have contributed to a more attractive investment climate compared to previous years.

Nigeria possesses one of the largest proven natural gas reserves in Africa, yet a significant portion of its gas resources remains underutilized due to infrastructure gaps, financing challenges and historical underinvestment.

In recent years, the Federal Government has increasingly positioned natural gas as a transition fuel capable of supporting industrialization, power generation and economic diversification while reducing reliance on more carbon-intensive energy sources.

The implementation of the Petroleum Industry Act, alongside ongoing regulatory reforms, has been aimed at creating a more transparent and investor-friendly environment capable of attracting both local and foreign capital.

However, experts maintain that achieving the country's gas expansion targets will require substantial financial commitments from banks, investors and development institutions.

As Nigeria seeks to transform its gas wealth into sustainable economic value, the message from the NUPRC is clear: policy reforms alone will not be enough.

While investor interest appears to be rising and regulatory frameworks continue to evolve, access to financing remains the bridge between ambition and execution.

With billions of dollars required for exploration, infrastructure and processing projects, the success of Nigeria's gas-driven future may ultimately depend on how quickly financial institutions respond to the industry's growing call for support.