Nigeria Struggles to Convince Investors on Its Renewed Upstream Oil Ambitions
Story: Written by Uzuh Rita December 8,2025
Nigeria is facing increasing challenges as it attempts to revive interest in its upstream petroleum sector, despite promising reforms and renewed assurances to investors. The country’s push to rejuvenate crude oil exploration and production has been met with caution from global energy players who remain uncertain about regulatory consistency, security risks, and operational bottlenecks.
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For years, Nigeria has struggled to boost output due to persistent issues such as crude theft, pipeline vandalism, funding gaps, and delays in project approvals. While the government has unveiled several policies aimed at attracting investments—including incentives embedded in the Petroleum Industry Act—industry experts say these efforts have not yet translated into the confidence needed to spark major new ventures.
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International oil companies (IOCs) have increasingly shifted focus away from Nigeria’s onshore and shallow-water assets, preferring offshore deep-water fields where security threats are lower. Meanwhile, indigenous operators, though growing in capacity, often grapple with limited access to capital and technical resources required for large-scale projects.
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Officials continue to promote Nigeria as a top-tier hydrocarbon hub with vast untapped reserves. However, restoring investor trust will require stronger regulatory clarity, guaranteed security for operations, transparent fiscal terms, and accelerated approval processes.
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Analysts believe that unless Nigeria addresses these long-standing structural issues, the country’s renewed upstream oil drive may struggle to deliver the expected surge in investment and production.
