Emmanuel Ukudolo I Monday, October 06, 2025
LAGOS – Nigeria’s pursuit of energy security is being fundamentally hampered by a severe decline in financing for its upstream oil and gas sector,Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy Plc said at the 2025 Africa Energy Week (AEW) Conference & Exhibition in Cape Town, South Africa.
Adaralegbe highlights that declining investment in upstream projects—driven by global energy transition pressures and perceived risks—is directly restricting the nation’s capacity to meet its rising domestic energy needs.
Adaralegbe stressed that upstream oil and gas remains the direct lever on national energy security, providing the fuel for both domestic consumption and essential foreign exchange earnings.
“Until utility-scale renewables, storage, and transmission are materially larger, Nigeria’s ability to keep lights on, vehicles moving, industries running, and households cooking cleanly is fundamentally constrained by upstream oil and gas development, output and associated midstream delivery,” she stated.
The analysis points to a stable and predictable fiscal framework as the “single most powerful enabler” for unlocking the necessary upstream financing.
Adaralegbe specifically cited three non-negotiable elements required to de-risk projects and attract long-term capital:
Consistent application of Petroleum Industry Act (PIA) provisions.
The warning underscores the urgent need for expansion in upstream activity, particularly gas exploration and production, to satisfy the nation’s soaring domestic demand for gas and power.
Without policy stability and clear fiscal signals, the report implies that Nigeria will continue to struggle with chronic energy shortages and a weakened foreign exchange position.
