Nigeria has the potential to transform the risks inherent in its oil and gas sector into opportunities for growth, provided operators and regulators work together in an environment that prioritises transparency and avoids late-stage policy changes.

Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), Ronald Adams, said this at the just-concluded 10th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.

Adams, who was represented by the company’s Finance Director, Tunde Oduwole, pointed out that predictable fiscal and regulatory frameworks are essential to attracting capital needed to develop Africa’s energy resources.

“When there is long-term predictability of the investment climate in terms of competitive and stable fiscal and regulatory frameworks, risks can be actively managed to unlock significant capital for growth and development even in challenging environments,” he said.

The Nigerian government has sought to revitalise its petroleum sector through the Petroleum Industry Act, passed in 2021 after years of delay, which aimed to modernise the regulatory framework and improve transparency.

Industry executives said while the reforms represent progress, investors remain cautious about regulatory consistency and the risk of unexpected policy shifts that can undermine project economics.

Adams argued that Nigeria’s experience could serve as “a blueprint for unlocking capital, accelerating project timelines, and sustaining value creation across Africa’s evolving energy landscape,” provided the current momentum towards regulatory predictability continued.

He stressed that Nigeria continues to demonstrate that Africa remains investable, describing the country as “a test case for African de-risking”.

He argued that recent government reforms and improved engagement with industry had begun to restore investor confidence.

Adams’ comments come as international oil companies reassess their African portfolios amid pressure to allocate capital to more profitable ventures and the energy transition.

Several majors, including Shell, have retreated from onshore operations in Nigeria in recent years, citing operational challenges and regulatory uncertainty.