Nigeria’s oil reserves fell slightly at the start of 2026 while gas reserves increased, underscoring the country’s gradual shift toward natural gas as it seeks to reposition its energy strategy and sustain long-term hydrocarbon output.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Wednesday that the country’s total oil and condensate reserves stood at 37.01 billion barrels as of January 1, 2026, while total gas reserves rose to 215.19 trillion cubic feet.
The figures, released in Abuja as part of the regulator’s annual petroleum reserves update, show a modest decline in oil and condensate reserves from the previous year, even as gas volumes expanded on the back of fresh discoveries and revised reservoir assessments.
According to the commission, 2P crude oil and condensate reserves were estimated at 31.09 billion barrels and 5.92 billion barrels respectively, while 2P associated gas and non-associated gas reserves were put at 100.21 trillion cubic feet and 114.98 trillion cubic feet.
The commission said the slight dip in oil reserves was largely due to production activity in 2025 and reserve updates based on field performance and technical evaluations. By contrast, the increase in gas reserves was attributed to new discoveries and more robust subsurface studies, reflecting the sector’s growing emphasis on gas development.
Nigeria’s reserves life index now stands at 59 years for oil and 85 years for gas, based on current production levels, according to the regulator. That benchmark offers an estimate of how long the country’s proven reserves would last if output remained unchanged.
In a statement accompanying the release, NUPRC chief executive Oritsemeyiwa Eyesan said the commission remained committed to improving upstream performance, growing reserves, and ensuring stable production through the implementation of the Petroleum Industry Act (PIA) 2021 and the agency’s broader reform agenda.
The latest figures suggest that while Nigeria remains one of Africa’s biggest crude holders, the balance of its hydrocarbon portfolio is increasingly tilting toward gas — a trend that aligns with the federal government’s long-running “Decade of Gas” strategy. The initiative seeks to leverage Nigeria’s vast gas resources for power generation, industrial use, exports, and domestic energy access.
Gas has increasingly been positioned by policymakers as a transition fuel that can help Nigeria diversify revenues, reduce dependence on crude oil, and support industrialisation. The country has also been trying to attract more upstream gas investment as part of efforts to meet both domestic supply needs and export ambitions.
The reserves update comes at a time when regulators are also trying to stimulate new exploration and improve investor confidence. Last week, the NUPRC signed a new petroleum exploration licence agreement with SeaSeisGeophysical Limited to acquire and process offshore seismic and gravity data, part of a broader effort to deepen understanding of Nigeria’s subsurface potential and support future reserves growth.
The regulator has also been advancing the 2025 licensing round, which it says is aimed at attracting new capital into the upstream sector under the legal and fiscal framework introduced by the Petroleum Industry Act. Officials argue that clearer rules, digital licensing systems, and more transparent processes should help unlock exploration and development opportunities.
Still, the modest decline in oil reserves highlights the structural challenge Nigeria faces in replacing produced barrels quickly enough through fresh discoveries and project execution. Analysts say sustained investment, faster field development, and improved security in producing regions will be crucial if the country is to preserve its standing as a major oil producer while scaling up its gas ambitions.
For now, the 2026 reserves position offers a mixed picture: a slight erosion in crude holdings, but a stronger gas outlook that reinforces the country’s push toward a more gas-centred energy future.
