Policy Stability, Security Key to Sustaining Oil Investment — AECAF

The Association of Energy Correspondents Abuja (AECAF) has called on the federal government to guarantee policy stability and strengthen security, particularly in the Niger Delta, warning that these remained the decisive factors in retaining existing investors and attracting fresh capital into Nigeria’s oil and gas sector.
AECAF chairman, John Ofikhenua, gave the charge at the association’s 2026 Annual Conference, held Thursday in Abuja, under the theme “Sustaining Oil and Gas Investment in Nigeria Amid Energy Transition.”
Ofikhenua said Nigeria’s oil and gas investment climate has historically been vulnerable to policy missteps, global economic shocks and shifts in international energy strategy, and that the country cannot afford a repeat of past patterns if it hopes to compete for capital in an increasingly crowded global energy market.
“National security is very vital to oil sector investment drive,” he said, stressing the need for a peaceful operating environment across the country’s oil-producing areas.
Citing recent history, Ofikhenua noted that the rise of shale production in the United States and the COVID-19 pandemic had both triggered periods of uncertainty and declining investment across the global oil and gas industry. He said Nigeria’s energy transition-era struggles were compounded by the exit of several international oil companies from onshore assets, a trend that further shook investor confidence.
Yet he argued that subsequent global disruptions — notably the Russia-Ukraine war and tensions around the Strait of Hormuz — have underscored just how strategically important reliable oil and gas supply remains, even amid the global push for cleaner energy.

According to him, this has shifted the global conversation away from an exclusive focus on energy transition and toward achieving a balanced energy mix.
Ending policy “summersaults”
Ofikhenua was direct in his criticism of Nigeria’s inconsistent policy history, calling for an end to what he described as policy “summersaults.” He argued that only stable, enduring policies — consistently implemented — would give investors the confidence to commit long-term capital to the sector.
He specifically pointed to consistent implementation of the Petroleum Industry Act (PIA) as a critical test of government’s seriousness, alongside sustained national security and broader policy stability.
Signs of renewed investor interest
Despite the sector’s turbulent history, Ofikhenua said there were clear signs that investor appetite for Nigeria’s oil and gas industry remains strong. He cited the ongoing Dangote Petroleum Refinery and Petrochemicals IPO and the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) oil and gas licensing rounds as evidence of this renewed interest.
The task ahead, he said, is for government to translate that interest into concrete, long-term investment by creating the right policy, security and regulatory conditions.