Oil Slips, Gas Surges as Nigeria Shifts Energy Focus

By:  Amarachi Okonkwo 

Nigeria’s oil and condensate reserves recorded a marginal decline in 2026, while its gas resources increased, highlighting a gradual shift in the country’s hydrocarbon profile amid sustained production and new discoveries.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this on Wednesday in Abuja, announcing the nation’s official petroleum reserves position as of January 1, 2026.

In a statement signed by its Chief Executive, Oritsemeyiwa Eyesan, the commission said Nigeria’s total oil and condensate reserves stood at 37.01 billion barrels, while total gas reserves rose to 215.19 trillion cubic feet.

The statement, titled “Media Release on the National Annual Petroleum Reserves Position as at 1st January 2026,” reaffirmed the commission’s commitment to strengthening upstream performance and ensuring long-term resource sustainability.

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Eyesan noted that the commission remains focused on boosting reserves and sustaining production through the effective implementation of the Petroleum Industry Act 2021 and its strategic operational pillars.

Providing a breakdown of the figures, she said 2P crude oil reserves stood at 31.09 billion barrels, while condensate reserves were estimated at 5.92 billion barrels, bringing the total to 37.01 billion barrels.

On gas, she stated that 2P associated gas reserves were 100.21 trillion cubic feet, while non-associated gas reserves reached 114.98 trillion cubic feet, resulting in a combined total of 215.19 trillion cubic feet.

The commission added that Nigeria’s reserves life index stood at 59 years for oil and 85 years for gas, indicating how long the resources would last at current production levels.

Explaining the changes, Eyesan attributed the slight 0.74 per cent decline in oil reserves to production activities in 2025, as well as routine reserves updates based on field performance and technical evaluations.

“The change is attributable to production during the year and reserves updates arising from subsurface studies and field performance reviews,” she said.

In contrast, gas reserves grew by 2.21 per cent, driven largely by new discoveries and improved reservoir assessments.

“The increase in associated and non-associated gas reserves is largely due to discoveries and the outcome of robust reservoir studies,” she added.

The latest figures mark a modest shift from 2025 levels, when total oil and condensate reserves were estimated at about 37.3 billion barrels, while gas reserves stood at roughly 210–211 trillion cubic feet.

Industry analysts say the trend reflects Nigeria’s gradual transition toward a gas-focused energy strategy, in line with the Federal Government’s “Decade of Gas” initiative and rising global demand for cleaner energy sources.

They note that while oil reserves declined slightly due to sustained production and limited new discoveries, the growth in gas reserves underscores increasing investment and exploration success in the gas segment.

Despite the dip, Nigeria’s oil reserves still rank among the largest in Africa, while its expanding gas base reinforces its position as one of the world’s leading gas-rich nations.

Analysts also highlight the role of the Petroleum Industry Act in improving the investment climate, enhancing regulatory transparency, and supporting reserves growth through better data management and licensing processes.

The NUPRC emphasised that the newly released figures represent Nigeria’s official national petroleum reserves position as of January 1, 2026, reaffirming its mandate to ensure sustainable resource development and long-term sector stability.

Nigeria’s cocoa processors are struggling to benefit from the recent cocoa price collapse, with the industry failing to capitalise on cheaper raw materials after prices plunged 83 percent from 2024 peaks.

The price drop, which has seen cocoa trade around N2.5 million per metric ton from a 2024 peak of N15 million, ought to have boosted profit margins for local grinders.