Energy experts have warned that Nigeria’s attempt to revive crude oil production and expand its gas market could stall without urgent investments in local capacity, cost reduction and predictable regulation, despite renewed optimism following the exit of several international oil companies from onshore and shallow-water assets.

This was the consensus at a pre-conference workshop of the Nigerian Association of Petroleum Explorationists in Lagos ahead of its yearly international conference. The workshop examined recent trends in divestments and acquisitions in the Nigerian oil and gas industry, as well as their long-term implications.

Delivering a keynote, the Managing Director of First Exploration and Petroleum Development Company, Ademola Adeyemi-Bero, expressed concern that technical support structures in the upstream sector have weakened. He noted declining investment in subsurface studies, production optimisation and asset surveillance and questioned whether supporting service firms possess sufficient manpower.

He added that multinational contractors rarely deploy their strongest teams to Nigeria without regulatory pressure and advised authorities to insist on deeper domestic value, warning that the country cannot sustain growth merely by acquiring divested assets.

Presenting research, Partner at McKinsey and Company, Oliver Onyekweli, stated that Nigeria’s operational expenditure is roughly 40 per cent higher than comparable oil basins, excluding payments for community security. He added that capital projects regularly attract 30 to 50 per cent cost overruns, a pattern that discourages global investors.

Nigeria’s carbon intensity, driven by routine flaring, is about 80 per cent above global averages, and this trend closes doors to climate-screened financing. Onyekweli warned that if the gap persists, Nigeria faces the risk of stranded reserves.