Africa must finance its own energy future as Nigeria pursues 3mbpd target — SPE

By Ambrose Nnaji

The Society of Petroleum Engineers (SPE), Nigerian Council, has warned that Nigeria’s ambition to increase crude oil production to three million barrels per day by 2030 will depend less on the award of new oil blocks and more on the country’s ability to rapidly execute projects, mobilise investment, deploy technology and strengthen indigenous operators.

Chairman of the SPE Nigerian Council, Francis Nwaochei, who is also Deputy General Manager, Partners Relations and Regulatory Affairs at Chevron Nigeria Limited, said the country’s energy sector has entered a decisive phase where operational execution, rather than policy announcements, will determine whether recent reforms translate into increased production and economic growth.

Speaking ahead of the 49th Nigerian Annual International Conference and Exhibition (NAICE 2026), scheduled for August 3-5, in Lagos, Nwaochei said this year’s conference theme, “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” reflects the realities confronting Nigeria and Africa’s energy industry.

According to him, rapid changes in global investment patterns, technology adoption, geopolitical dynamics and decarbonisation policies require African producers to pursue energy security and environmental sustainability simultaneously rather than treating them as competing priorities.

He argued that resilience for Africa should no longer be viewed merely as protection against market shocks but as a competitive strategy capable of attracting investment, reducing costs and expanding access to energy.

“Our continent faces the dual challenge of ending energy poverty while accelerating industrialisation. Achieving both requires collaboration among regulators, operators, financiers, technology developers and service providers to reduce operating costs, de-risk investments and unlock capital,” he said.

Nwaochei described the recent conclusion of Nigeria’s 2025 licensing round by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as an important milestone but cautioned that the award of exploration licences represents only the beginning of the investment cycle.

He commended the Federal Government, the Ministry of Petroleum Resources and the NUPRC for conducting what he described as a transparent, automated and market-driven licensing process under the Petroleum Industry Act (PIA).

However, he stressed that the real challenge now lies in converting the newly awarded assets into commercially viable production.

“The licensing round is only the catalyst. Turning those licences into producing assets requires rapid technology deployment, reservoir management, disciplined capital mobilisation and efficient project execution,” he said.

According to him, discussions at NAICE 2026 will focus on the commercial and technical pathways required to move the newly awarded assets from exploration to production while supporting Nigeria’s production target.

Nwaochei noted that indigenous operators have become increasingly central to Nigeria’s upstream industry following the ongoing divestment of international oil companies from onshore and shallow-water assets.

He said local companies now account for about 60 per cent of national oil production and must demonstrate stronger operational capability, financial discipline and environmental stewardship as they assume responsibility for ageing assets and decommissioning obligations.

“The success of indigenous operators will largely determine Nigeria’s future production growth,” he added.

Beyond upstream operations, the SPE chairman identified domestic refining as another strategic pillar of Nigeria’s energy security.

He said the expansion of large-scale private refineries alongside modular refining projects presents an opportunity to transform Nigeria into a regional refining hub, provided government succeeds in balancing domestic crude supply obligations with commercially sustainable pricing for producers.

Addressing concerns over Nigeria’s OPEC production quota, Nwaochei argued that the country’s immediate priority should be building sustainable production capacity rather than focusing solely on quota limitations.

He also identified natural gas and condensate production, which are not subject to OPEC crude quotas, as areas offering immediate opportunities for production growth and increased revenue.

Financing remains one of the biggest constraints to Africa’s energy ambitions, he said, particularly as many Western commercial banks continue reducing exposure to oil and gas projects because of Environmental, Social and Governance (ESG) policies.

Nwaochei therefore urged African governments and financial institutions to strengthen regional financing mechanisms capable of supporting large-scale energy investments.

He expressed optimism that the planned commencement of the Africa Energy Bank later this year would provide an alternative source of capital for oil and gas projects across the continent.

On infrastructure security, he called for greater deployment of digital surveillance systems, fibre-optic monitoring, automated metering and artificial intelligence to protect critical oil and gas assets.

He noted, however, that technology alone cannot solve the challenge of pipeline vandalism and crude oil theft without meaningful implementation of the Host Community Development Trusts established under the Petroleum Industry Act.

The SPE chairman also stressed that Africa’s energy transition must reflect the continent’s developmental realities.

According to him, hydrocarbons will continue to play a critical role in industrialisation, manufacturing and electricity generation for decades, even as producers work to reduce carbon emissions and improve environmental performance.

He urged operators to eliminate routine gas flaring, reduce methane emissions and adopt cleaner production technologies to ensure Nigerian crude remains competitive in international markets that are increasingly imposing carbon-related trade measures.

Nwaochei said NAICE 2026 will feature more than 600 peer-reviewed technical papers covering reservoir management, drilling engineering, artificial intelligence, deep-water operations, carbon capture and other emerging technologies.

The conference will also host strategic policy discussions on fiscal reforms, investment attraction, local content development, indigenous operators, energy financing and resilient energy systems, alongside exhibitions showcasing digital energy technologies, subsea innovations and operational equipment.

He added that technical recommendations emerging from the conference would be compiled into an official communiqué for submission to government, regulators and industry stakeholders as part of efforts to strengthen evidence-based policy implementation.

According to him, the conference is intended not merely as an industry gathering but as a platform for developing practical solutions that will help Nigeria and Africa build a more competitive, resilient and sustainable energy sector.

Responding to questions on collaboration and technology in driving industry growth, Nwaochei said collaboration can only succeed when all stakeholders share common objectives adding that once government, regulators, operators, investors and service companies align around the same national goals, cooperation becomes much easier.

“The Federal Government has made its ambition very clear by setting a target of producing three million barrels of oil per day. You can already see every segment of the industry aligning with that objective.

“Operators are increasing drilling activities, regulators are repositioning themselves as business enablers through supportive policies, and the industry is working towards a common goal. That is what true collaboration looks like.”

Nwaochei stressed that technology remains the single most important factor in improving the competitiveness of Nigeria’s energy industry.

“Every country that has advanced industrially has done so through technology. The same applies to Nigeria’s energy industry.

“If we improve our technological capabilities in reservoir engineering, production, gas development, downstream operations and other areas, we will significantly improve productivity and competitiveness.

“The telecommunications revolution transformed Nigeria through technology. We need a similar transformation across the petroleum industry. Countries such as China and Japan have demonstrated what technological innovation can achieve.”, he said.

SPE Council Secretary, Obianuju Igbokwe urged young professionals to develop both technical and personal leadership skills.

“Technical competence will take you far, but personal development will take you even further.

Identify professionals whose careers you admire, study how they work, understand their strengths and deliberately build those qualities in yourself.

Young professionals should define the kind of reputation they want to build and intentionally develop the skills needed to achieve it.”, Igbokwe said.

Also, the SPE Chief of Staff, Choja Ojanomare said NAICE should be viewed as a long-term institution rather than an annual event.

“NAICE is not a sprint; it is a marathon that has been running for nearly five decades.

It has consistently brought together government, regulators, industry players and academia to exchange ideas that have shaped Nigeria’s energy policies over the years.

“The conference has contributed significantly to the evolution of Nigeria’s petroleum industry, and its impact extends well beyond a single year.”, he said.

Caption:
L-R:
The Chairman, Planning Committee, Nigeria Annual International Conference and Exhibition (NAICE) 2026, Capt. Aris John-Emezi; Secretary, Society of Petroleum Engineers (SPE) Nigeria Council, Obianuju Igbokwe; Chairman, Francis Nwaochei; Vice Chairman, Etta Agbor; and Vice Chairman-elect, SPE Nigeria Council, Oladipo Ashafa during a press conference to announce the upcoming SPE-NAICE 2026, in Lagos.