Shell: Nigeria Must Enhance Policies to Attract Oil and Gas Investments
Shell has emphasized that Nigeria is in stiff competition for investments in the oil and gas sector and must continuously improve strategies to remain attractive. The company also pledged support for recent reforms aimed at boosting production and making the industry more profitable.
Need for Stronger Policies to Attract Investors
Speaking at the Nigeria International Energy Summit in Abuja, Shell’s Senior Vice President for Nigeria, Marno de Jong, stated that Nigeria must rethink its strategies and policies to maintain investor confidence. He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its recent reforms, which have increased crude oil production to about 1.75 million barrels per day.
“Reforms are essential for boosting production and ensuring better returns in the entire value chain,” Marno stated. He emphasized that Shell remains committed to Nigeria’s development, having operated in the country for over 60 years.
Since the Petroleum Industry Act (PIA) of 2021, the government has been working on policies to improve oil and gas production, reduce costs, and promote stability in host communities. Marno cited Shell’s $5 billion Bonga North deep-water project as an example of how these reforms are already attracting investments.
Expanding Gas Infrastructure for Economic Growth
Shell also highlighted the importance of developing infrastructure to grow Nigeria’s domestic gas market. Ralph Gbobo, Managing Director of Shell Nigeria Gas (SNG), explained that efficient gas distribution is key to lowering energy costs, expanding industries, and improving economic growth.
He noted that infrastructure like the Escravos-Lagos Pipeline System, which supplies gas to domestic users, is essential for industrial expansion. However, more investments are needed to fully utilize Nigeria’s vast gas reserves.
“If we can implement key regulations, such as the Network Code, and maintain a stable market where investors can get their returns, we will see more players enter the gas sector,” Gbobo stated.
He emphasized that expanding the domestic gas market requires collective efforts from the government, regulators, and private investors. Policies that ensure a stable investment climate will encourage more companies to participate in gas production and infrastructure development.
Nigeria is in stiff competition for capital and confidence. Attracting investors requires a continued rethink of strategies and policies to leverage technology, cost efficiency, and manpower for business growth and sustainability.” — Marno de Jong, Senior Vice President, Shell Nigeria.
Shell’s Commitment to Nigeria’s Gas Development
Shell has invested heavily in Nigeria’s gas value chain and continues to support the country’s transition to cleaner energy. Since 1988, Shell Nigeria Gas (SNG) has built gas distribution networks in Rivers, Abia, and Ogun states, supplying gas to over 140 businesses.
Last year, Shell signed a deal with the Oyo State Government to build a gas infrastructure system that will deliver affordable gas to industries and businesses in the state and beyond.
Nigeria’s oil and gas industry plays a crucial role in economic growth, but attracting investment requires strong policies, stable regulations, and well-developed infrastructure. With the right strategies, the country can boost energy production, create jobs, and drive industrial development. As Shell and other stakeholders continue to invest, Nigerians stand to benefit from increased energy supply, job opportunities, and a stronger economy.
