In this interview with the media at the just concluded Nigerian Gas Association, NGA Legal Forum 2026, Maiden Edition,
Mr. Humphrey Onyeukwu the Group Head, Legal and Company Secretary for Oilserv Group, speaks on how to boost revenue in the petroleum industry and the economy.
YEMISI IZUORA was there for Oriental News Nigeria
Excerpts
Can you give us an brief overview of the industry?
So far, from where we sit as an operator, we appreciate that a lot of progress or movement has been made for the gas sector development.
However, a lot more is required to ensure that some of those constraints that affect the business, in terms of distribution constraints and the like, are given more attention.
So, the government is currently pursuing the Decade of Gas. Do you think the appropriate legal framework is in place to ensure its success?
Yes. Well, Gas is at the heart of our business. Oilserv is a major contributor, with involvement across key projects. I would say, 80% of the infrastructure blueprint under the Nigeria gas market plan, which is part of the decade of gas, and we are pursuing more or less to expand the gas infrastructure to ensure the commercialization of our domestic gas market. We are in the heart of it, we are involved in a lot of the projects, like that of the ANOH project, which is about taking gas from the East and injecting it into the OB3.
We are involved in the OB3 project, the AKK as well. So, we are involved in quite a lot of projects that are all part of the decade of gas.
So, yes, the Gas Initiatives are very great, more so that Nigeria has made gas its transitional energy. However, what I would say is that it will require a bit more effort in implementation to also attract the level of liquidity that is required to complement the gas initiatives. So, the government is doing very well, and supporting those projects is a good intention from the government.
The businesses, people like us, are also bringing our expertise, capacity, and also supporting the government to achieve the actualisation of some of the Decade of Gas Initiatives. But the bigger picture we want to see in the market is a system that encourages more investment. So, more, what would I call it, market reality pricing, because without that, a lot of these projects may not reach their peak or capacity.
So, we are quite pleased with what we are seeing, and we also encourage the government to do more.
What are key critical challenges facing the sector?
Pricing will be the next. The level of pricing that matches the investment may not meet the level of pricing that the offtakers are willing to take.
So, that kind of disconnect sort of tries to stunt the impact of the ‘decade of gas initiatives’, because there ought to be more projects, more pipelines that ought to be built, more gas processing facilities, because Nigeria is more or less a gas province.
We have a lot of gas, and it is about domesticating that gas to serve our local needs. But the gas pricing does not require some level of expertise. If I have a choice between selling gas domestically or taking it abroad, and I realize that there is more value to be gotten from selling outside, i believe we know the obvious. I strongly believe that if we solve that pricing issue, then a lot more positive investment will happen.
So, that is where I believe an effort is required to help us achieve the kind of gains we can expect from the Decade of Gas Initiative.
To what extent are current legal status guiding the industry, from access to funds, because that has been the issue in the industry?
Yeah, the legal framework has a much larger role to play. Much thanks to the Petroleum Industry Act, PIA, which has done a lot of work in bringing some level of certainty around our legal framework.
So, that part has helped, but also remember that the rules of money, as money follows where the value is. If the market exists in terms of returns, then will there be more funding unlocked.
However, the issue for me is not the legal framework. The legal framework has matured in the sense that we know. okay, we have the laws, we have the regulations, and they have also led to a path of development that we have seen in the gas industry.
Beyond the legal framework, what we need is commercial viability; that is required to stimulate the industry’s growth. Moreso, that is what can unlock funding for infrastructural development. If we have clarity, which stipulates that if I put in this, I will be able to recover my fund as well as some profit, then I think more funding will be unlocked.
That is an area that I believe may be the next event of our initiative today, around how to go about the market.
What is your advice to the government for further growth expected in the industry?
Government is a key factor in the development process of the industry. My advice to the government is that they should also do more in terms of funding some of these major infrastructure projects, particularly pipeline infrastructure, which may not be able to attract the necessary private funding that will help make it happen.
Of course, there is a bit of uncertainty around the commercials because, like I mentioned, the prices are not market reflective. So, if those are not, we won’t be able to attract that level of funding needed.
Yes, we need government; we also need partners, as well as support. Because, yes, the market has increased. There is an opportunity for further step-ups or to take step-ups in moving the infrastructure.
However, that cannot happen because of the disconnected commerciality and the presence of the DSO. My advice to the government is that it has to play a role in actively ensuring new infrastructural development and creating an enabling environment for businesses to thrive. We have the North-South Gas Pipeline, which is a key pipeline project that will also help address and unlock alot of gas from the East, which has somehow been stranded. So, as the government supports the pipeline, that will be an added benefit to the sector. That will also put more gas in the market.
But what is the essence of deregulation, if the government is still pumping in money?
No, the pricing cannot attract the level of prospects that we have. It is not the investment in those big projects. So, that is why I say it is also a commonwealth and a win-win process.
How do you see the conference and the issues being looked at?
It was an excellent discussion. The topics, the sections, the participation. We learnt a lot and also met a lot of my colleagues in other spaces. So, it was a good one, and I am looking forward to more of it in the future.