Aug 5, 2025
Oil & Gas
Updates
In a recent Lunchtime Politics interview with Geoffrey Uzono on Channels TV, Francis Enakele, Managing Director of Today Tomorrow Energy Nigeria Limited, shared candid insights on the structural issues affecting Nigeria’s oil and gas industry and what it will take to reposition the sector for long-term sustainability.
His remarks highlighted the critical role of technology, the urgency of unlocking capital, and the strategic imperative to prioritize natural gas investments.
Financial Transparency: Why It Matters
With new leadership in place at NNPC Limited, attention has turned to long-standing concerns around the mismatch between reported assets and liabilities. Francis Enakele emphasized that rebuilding public and investor trust requires more than operational improvements; it demands a clear communication strategy that explains how inconsistencies are being addressed, what systems are being implemented, and how the transition supports long-term energy security.
This includes the need for stronger corporate governance, improved reporting structures, and data-backed transparency that shows tangible progress, not just intention.
Governance and Communication: Rebuilding Stakeholder Confidence
NNPC’s performance dashboard was welcomed as a first step, but Enakele pointed out that data must be translated into insight. Investors, civil society, and even employees require communication that is both transparent and easy to understand just like the investor relations culture seen in international oil companies.
This kind of inclusive communication builds trust, encourages market participation, and reinforces accountability across the board.
A major structural deficiency in Nigeria’s upstream oil and gas sector is the lack of a robust hydrocarbon accounting system, driven by insufficient metering infrastructure. As Enakele noted, most production data submitted to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is self-reported by operators, with limited verification.
This creates a data credibility gap that affects everything from fiscal forecasting to production planning. To address this, Nigeria must adopt automated and real-time metering systems that offer end-to-end visibility and ensure reliable production data. Without this foundation, efforts to attract investment and improve operational performance will continue to be hampered.
Unlocking Production: The Investment and Policy Challenge
On the pressing question of why Nigeria is not producing at its full potential, Enakele pointed to a combination of underinvestment, financing challenges, and structural bottlenecks. Many operators have not historically made adequate CAPEX provisions to fund field development. Those now seeking financing face a tougher global capital environment, particularly due to increased scrutiny over fossil fuel investments amid the climate crisis.
That said, Nigerian firms must innovate in how they access capital, looking to domestic capital markets, blended finance, and ESG-aligned instruments to meet their funding needs. Enabling this also means resolving local challenges like regulatory uncertainty, insecurity, and infrastructure limitations.
Enakele acknowledged the ongoing implementation of the Petroleum Industry Act (PIA) as a step toward improving the regulatory framework. In parallel, he highlighted that stakeholders are actively discussing the Incorporated Joint Venture (IJV) model - a structure that, while not embedded in the PIA, could allow joint venture entities to raise capital independently and operate with more commercial autonomy.
If embraced, IJVs could help eliminate the delays associated with government cash calls and improve work programme execution across the upstream sector.
The Case for Natural Gas and Technology-Driven Reform
Looking ahead, Enakele strongly advocated for greater investment in Nigeria’s natural gas resources, which remain largely untapped despite the country’s significant reserves. Natural gas presents a cleaner, more climate-aligned growth opportunity that can support power generation, industry, and export revenues.
To fully capitalize on this opportunity, the sector must adopt modern technologies that increase efficiency, enhance monitoring, and improve production outcomes. From digitized field operations to satellite-based pipeline surveillance and automated flare tracking, technology is central to making Nigeria’s oil and gas industry competitive and sustainable.
This focus on gas and digital infrastructure is not just about meeting global ESG benchmarks, it’s about monetizing Nigeria’s abundant energy resources in a way that drives inclusive growth and long-term resilience.
Francis Enakele’s reflections paint a picture of a sector at a pivotal crossroads. Governance, transparency, investment strategy, and technology must work together to unlock Nigeria’s oil and gas potential particularly in the face of declining global appetite for fossil fuel risk.
But none of this will materialize without focused execution and coordinated leadership. Nigeria’s oil and gas sector can still be a driver of economic transformation, but only if it evolves to meet today’s realities.
Strategic Recommendations
1. Improve Governance and Transparency
Drive consistent communication on financial and operational performance, with clear roadmaps for reform.
2. Deploy Automated Metering and Monitoring Systems
Build a credible hydrocarbon accounting framework using real-time data and verification technologies.
3. Accelerate Gas Investment
Prioritize projects that monetize Nigeria’s natural gas reserves for domestic and export use.
4. Unlock Capital Through Market Innovation
Encourage blended finance, ESG-linked bonds, and domestic capital market participation to close the investment gap.
5. Explore the IJV Model
Support stakeholder efforts to structure Incorporated Joint Ventures that operate with commercial independence.
6. Embrace Technology at Scale
Leverage digital infrastructure to reduce losses, monitor assets, and improve field performance.
With the right mix of policy, technology, and financial innovation, Nigeria can reposition its energy sector as a resilient, investor-ready engine of growth for decades to come.
