Uche Cecil Izuora
Nigeria has recorded a turning point in natural gas reserves which has now reached 215.19 trillion cubic feet as of January 2026.
However the country’s oil reserves recorded a slight dip, according to new data released by regulators.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the updated figures in Abuja, highlighting a gradual shift in the country’s energy outlook driven by ongoing gas discoveries and sustained crude production.
This is even as Nigeria recently established the Frontier Exploration Fund (FEF) from which over N450 billion was realised by the Nigerian National Petroleum Company Limited (NNPCL) in 2025 alone.
Nigeria’s oil reserves have declined in at least the last three years.
The Commission disclosed that the country’s crude reserves slumped by 0.74 per cent as of January 2026 to 37.01 billion barrels.
It is reported that in 2025, Nigeria’s crude oil reserves stood at 37.28 billion barrels, falling from 37.50 billion barrels in 2024, the NUPRC announced at the time.
At its core, Nigeria’s frontier exploration fund was created under the Petroleum Industry Act (PIA) in 2021 to finance exploration in frontier basins of the country where hydrocarbons are suspected but not yet proven or commercially developed.
In plain terms, it was designed to search for new oil and gas deposits in underexplored regions, expand Nigeria’s reserves base beyond the traditional Niger Delta and de-risk exploration in difficult or unproven terrains where private investors are usually reluctant to go.
These frontier basins include places like the Chad Basin, Sokoto Basin, Anambra Basin, Benue Trough, Dahomey Basin, and others. Before President Bola Tinubu stopped its administration by the NUPRC and the NNPC early this year, instructing direct payment to the Federation Account, the law mandated that about 30 per cent of NNPC’s profit from oil and gas production-sharing contracts was set aside for this purpose.
Under the latest assessment, total oil and condensate reserves declined marginally to 37.01 billion barrels. The adjustment reflects production activities from the previous year as well as technical reviews of existing fields.
Explaining the development, the Chief Executive of the commission, Oritsemeyiwa Eyesan, said, “The Reserves Life Index is 59 Years and 85 Years for Oil and Gas, respectively. The reason for the slight change in 1.1.2026 oil and condensate reserves by 0.74 per cent is attributable to production in 2025 and reserves update due to field performance and technical evaluation based on subsurface studies.”
In contrast, gas reserves saw measurable growth, supported by fresh exploration successes and improved reservoir analysis.
“The reason for the increase in 1.1.2026 AG and NAG reserves by 2.21 per cent is largely because reserves update is based on discoveries and the result of robust reservoir studies,” she said.
Reaffirming the figures, she added, “The reason for the increase in 1.1.2026 associated gas and non-associated gas reserves by 2.21 per cent is largely because the reserves update is based on discoveries and the result of robust reservoir studies.”
The updated reserve composition shows that 2P crude oil stands at 31.09 billion barrels, while condensates account for 5.92 billion barrels.
“2P crude oil and condensate reserves stand at 31.09 billion barrels and 5.92 billion barrels, respectively, amounting to a total of 37.01 billion barrels.”
Gas reserves, on the other hand, are split between associated and non-associated resources.
“2P associated gas and non-associated gas reserves stand at 100.21 trillion cubic feet and 114.98 trillion cubic feet, respectively, resulting in total gas reserves of 215.19 trillion cubic feet.”
The commission also projected the lifespan of the country’s hydrocarbon resources, estimating decades of continued production at current rates—59 years for oil and up to 85 years for gas.
Beyond the figures, regulators emphasised the broader objective of strengthening the upstream sector and sustaining long-term value from Nigeria’s resources.
Eyesan said, “The Nigerian Upstream Petroleum Regulatory Commission, in keeping with its mandate, is committed to improving upstream sector performance, enhancing the growth of oil and gas reserves, and ensuring stable production for shared prosperity via the operationalisation of the Petroleum Industry Act, 2021, and implementation of the strategic pillars of the commission.”
She formally declared the reserve figures as the country’s official position for 2026.
“Consequently, and in furtherance of the provisions of the Petroleum Industry Act, I hereby declare the total oil and condensate reserves of 37.01 billion barrels and total gas reserves of 215.19 trillion cubic feet as the official national petroleum reserves position as of 1st January 2026.”
A comparison with the previous year shows a slight rebalancing in Nigeria’s hydrocarbon mix. Oil reserves slipped from about 37.3 billion barrels in 2025, while gas reserves increased from roughly 210–211 trillion cubic feet.
The trend signals a steady movement toward gas as a more prominent component of Nigeria’s energy future, in line with government policy and global demand for cleaner fuels.
Analysts say the country’s strong gas base reinforces its strategic position in the global energy market, even as oil remains a major contributor to revenue. Despite the marginal decline, Nigeria continues to rank among Africa’s leading crude oil holders.
The evolving reserve profile also reflects the ongoing impact of the Petroleum Industry Act, which has reshaped regulatory oversight and is expected to attract further investment into exploration and production activities.