•Nigeria eyes $27.6b oil investment as leaders seek end to crude export
•President Tinubu, others seek balanced, pragmatic energy transition

The Federal Government’s optimism about a revived investment climate, which led to approval of 28 new field development plans valued at $18.2 billion in 2025, came under scrutiny yesterday in Abuja as oil operators raised fresh concerns over the widespread reliance on private security in the Niger Delta and cost premiums exceeding 40 per cent compared with other non-shale jurisdictions.

In a development that questions the capacity of state security agencies to protect oil facilities, the operators said, it would increase Nigeria’s already high unit operating costs relative to peer countries.

This came as the Federal Government said at the opening ceremony of the Nigerian International Energy Summit (NIES) that over $120 billion was being eroded from Africa in hydrocarbon bills.

Minister of State for Petroleum (Oil), Heineken Lokpobiri, also disclosed at the event that about $27.6 billion in investment would have come to Nigeria after decades of investment drought if Shell had kept to its promised $20 billion final investment decision.

While the Nigerian Army, Navy and Air Force are deployed to the Niger Delta, oil companies, especially independent operators, who now operate largely through barges to evacuate crude due to vandalism, face high-cost production hovering around $40 per barrel.

The Independent Petroleum Producers Group (IPPG), at the event, warned that Nigeria’s oil and gas industry risked losing competitiveness unless urgent steps were taken to cut costs, improve security and stabilise policy.

Speaking at the event, IPPG Chairman/Chief Executive Officer of Aradel Holdings, Adegbite Falade, said the sector operates at about 40 per cent cost premium compared to other non-shale jurisdictions, largely due to excessive bureaucracy, multiple industry charges and rising security expenses.

Falade said the growing reliance on private security to protect oil and gas assets in the Niger Delta significantly increased unit operating costs, urging the government to strengthen public security frameworks to reduce the burden on operators.

He stressed the need to expand Nigeria’s midstream infrastructure through public-private partnerships, warning that inadequate gas processing and transportation facilities continue to limit production and the sector’s contribution to Gross Domestic Product (GDP) growth.

On financing, Falade described access to long-term, affordable capital as critical to unlocking Nigeria’s hydrocarbon potential.

Regional Chairman for Africa, World Energy Council, Dr Omar Ibrahim, argued that the continent’s dependence on exporting crude oil and gas while importing finished goods was entrenching poverty rather than reducing it.

Ibrahim said Africa adopted an export-oriented oil and gas framework shortly after independence and failed to review whether the model still serves its development needs.

The African Refiners and Distributors Association (ARDA) called on Nigeria to leverage its downstream oil and gas sector to become a regional refining and energy hub, stressing the need for integrated infrastructure, value-added petrochemicals and low-carbon fuels.

ARDA Executive Director, AniborKragha, highlighted that Nigeria’s growing population, projected to be the world’s third-largest by 2050, would require increased access to petroleum products such as gasoline, diesel, jet fuel and Liquefied Petroleum Gas (LPG).

Kragha said Africa must deepen its investment in refining and gas processes to strengthen regional trade, support local currencies and enhance economic resilience amid global geopolitical uncertainties.

“Developing downstream oil and gas, from refining to integrated storage, distribution, and petrochemical projects, is essential for resilient African economies,” he said.

With Nigeria handling over 4,000 ships yearly and two of Africa’s busiest airports, Kragha said the country has significant opportunities to supply sustainable fuels for shipping and aviation while expanding regional trade.

Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, said Nigeria stands at a critical turning point as energy security, industrialisation, and global competitiveness increasingly converge.

Ojulari described energy as central to national security and economic development, noting that Africa’s transition challenge differs significantly from that of developed economies.

With over 600 million Africans lacking access to electricity, he said the continent’s priority must be expanding affordable and reliable energy supply, while balancing sustainability and growth.

President Bola Tinubu, also speaking at the event, called for a balanced and pragmatic energy transition that supports economic growth, energy security and expanded access across the continent, stressing that Africa must develop its resources responsibly without undermining prosperity.

Tinubu, represented by Vice President Kashim Shettima, stressed Nigeria’s readiness to deepen collaboration to improve energy access and support economic development by increasing infrastructure investment.