SPE pushes for oil industry policy certainty, cheaper capital

Nigeria’s ambition to turn its vast hydrocarbon resources into sustainable economic growth is facing a defining test: whether the country can create the policy certainty, financing environment, technology base and human capital needed to convert resources into bankable projects. That was the central message emerging from the 49th Nigerian Annual International Conference and Exhibition (NAICE 2026), where industry stakeholders warned that Nigeria’s next phase of oil and gas growth cannot be driven by resource ownership alone. The three-day conference, organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos from August 3–5, brought together policymakers, regulators, operators, investors, academics, researchers and energy professionals to examine how Nigeria can remain competitive as the global energy system undergoes profound changes. Held under the theme, “Thriving in the Evolving Global Energy Landscape: Collaboration, Growth and Resilience,” the conference produced a clear industry diagnosis: Nigeria still has the resources to support decades of economic activity, but investment will increasingly flow to jurisdictions where rules are predictable, projects are commercially viable and capital can earn competitive returns. In a communique issued and made available to The Nation, the Council therefore placed regulatory certainty and fiscal stability at the heart of Nigeria’s investment challenge. It called on the Federal Government to strengthen implementation of the Petroleum Industry Act (PIA), particularly by ensuring consistency, transparency and predictability in fiscal and operational policies. For investors, the message is significant. Nigeria’s challenge is no longer simply how to attract investors into the petroleum sector, but how to convince existing and prospective investors that projects approved today will operate under sufficiently stable rules over the long term. From resources to bankable projects, the conference’s position reflects a broader structural change in Nigeria’s upstream industry. International oil companies are progressively reshaping their portfolios, while indigenous producers are assuming greater responsibility for assets and fields that once sat predominantly within the operational portfolios of international majors. NAICE 2026 recognised the growing contribution of indigenous operators but cautioned that the transition will only translate into higher production and greater economic value if local companies can access technology, skilled personnel and affordable long-term financing. This creates one of the industry’s most pressing business questions: Can Nigeria’s indigenous operators finance the next generation of oil and gas developments at a time when global capital is becoming more selective about hydrocarbons? History The council urged financial institutions and investors to develop innovative financing structures capable of supporting indigenous operators and accelerating field development. That recommendation goes beyond conventional lending. According to the Council, many indigenous companies require capital for field development, enhanced recovery, infrastructure, processing facilities, technology and production optimisation. Yet the cost and availability of capital can determine whether a discovered resource becomes a producing asset or remains stranded underground. The implication is that Nigeria’s oil production challenge is increasingly also a capital-market challenge. EducationalResources Another important message from NAICE 2026 was that growth in the upstream sector should no longer be measured primarily by how many assets companies acquire.