Juliet Ezeh
Nigeria’s oil and gas industry is facing a looming crisis that could slow production and weaken investor confidence not because of declining reserves, but due to a growing shortage of skilled professionals.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyewa Eyesan, issued the warning on Tuesday, urging indigenous oil companies to urgently invest in human capital development or risk undermining the sector’s long-term sustainability.
Speaking during a meeting with the Independent Petroleum Producers Group (IPPG) in Abuja, Eyesan said the ongoing exit of international oil companies has fundamentally shifted responsibility to local operators many of whom may not yet have the technical depth required to sustain industry standards.
According to her, the consequences of this skills gap extend beyond individual companies and could impact Nigeria’s reputation in the global energy market.
“One area we must urgently prioritise is human capital development. If we allow gaps in capacity to persist, it will hurt the entire industry,” she said, noting that global financiers assess Nigeria as a whole, not just individual firms.
Her warning comes at a critical time when Nigeria’s upstream sector is undergoing a major transition. The divestment of multinational oil companies, once seen as a boost for local content, is now exposing structural weaknesses particularly in technical expertise, workforce development, and operational efficiency.
For decades, international operators provided not just capital, but also training, advanced technology, and global best practices. Their gradual exit has left indigenous firms with the challenge of filling that gap, often without sufficient preparation.
Industry analysts say the shortage of skilled engineers, geoscientists, and project managers could slow production growth, increase operational risks, and reduce Nigeria’s competitiveness in attracting foreign investment.
Eyesan also called on indigenous producers to strengthen corporate governance and strictly comply with the Petroleum Industry Act (PIA) 2021, stressing that transparency and regulatory alignment are key to sustaining investor confidence.
She further disclosed that the Commission has transitioned to a fully paperless system as part of ongoing reforms aimed at improving efficiency, transparency, and ease of doing business in the sector.
Meanwhile, the Chairman of the IPPG, Adegbite Falade, acknowledged the regulator’s efforts and pledged continued collaboration, noting that recent reforms signal a positive shift in leadership and industry direction.
However, experts warn that without urgent and coordinated investment in training, capacity building, and knowledge transfer, Nigeria risks replacing foreign dominance with local inefficiency.
The warning highlights a deeper reality: Nigeria’s oil future may not be limited by resources beneath the ground, but by the expertise above it.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.