As Nigeria continues to reposition its energy sector through regulatory reforms, gas commercialisation, and energy transition initiatives, industry stakeholders remain optimistic about the country’s long-term prospects. In this exclusive interview with Valuechain’s Emmanuel Peter, Dr. Mohammed Malami, Assistant Program Chair of the Society of Petroleum Engineers (SPE) Abuja Section, discusses how recent policy reforms are reshaping investor confidence, the implementation of the Petroleum Industry Act (PIA), the future of gas utilisation, ESG commitments, infrastructure development, and the skills young professionals need to thrive in an increasingly digital and low-carbon energy landscape.
Can you introduce yourself?
My name is Dr. Mohammed Malami, and I currently serve as the Assistant Program Chair of the Society of Petroleum Engineers (SPE) Abuja Section. Professionally, I work in Nigeria’s oil and gas industry, with a strong interest in energy policy, sustainability, and sector development. It is a pleasure to be part of this conversation.
How will the latest midstream and downstream regulations impact foreign direct investment (FDI) in Nigeria this year?
Nigeria’s oil and gas industry is undergoing significant transformation. Before the enactment of the Petroleum Industry Act (PIA), the industry operated under a single regulator and lacked the comprehensive legal and regulatory framework investors needed.
The PIA, enacted in 2021, introduced two independent regulators and established clearer governance structures for the industry. These reforms have improved transparency and strengthened investor confidence by providing greater certainty that investments will be protected.
As a result, the industry has witnessed increased investments over the past two to three years, particularly in gas development and the revival of previously abandoned assets. These developments indicate that regulatory reforms are beginning to deliver the confidence required to attract foreign investment.
What governance frameworks are still missing to ensure strict adherence to the Petroleum Industry Act (PIA)?
The PIA addresses many aspects of the petroleum industry, particularly regulation and commercial operations. One of its major achievements was separating the commercial responsibilities of NNPC Limited from policy and regulatory functions, allowing it to operate purely as a commercial entity.
However, one critical area still requires strengthening: the policy framework within the Ministry of Petroleum Resources. While there have been reforms, including separate ministers overseeing oil and gas, further institutional strengthening is needed to ensure seamless coordination between policy formulation, regulation, industry operators, and offtakers.
Future amendments to the PIA should pay greater attention to this policy dimension because the effectiveness of the industry depends on the strength of every link in the value chain.
What realistic milestones can Nigerian operators achieve by 2030 regarding flare commercialisation and methane reduction?
Nigeria has made remarkable progress in reducing gas flaring.
Historically, gas was viewed as a by-product of oil exploration and was routinely flared because there was limited infrastructure to utilise it. The establishment of Nigeria LNG (NLNG) marked a turning point by enabling associated gas to be processed and exported, significantly reducing routine flaring.
The government’s Gas Flare Commercialisation Programme has further accelerated this progress. Under the initiative, companies can bid for flare sites, invest in gas-processing infrastructure, and convert previously wasted gas into commercially valuable products for domestic consumption or export.
Many of these projects have already moved into the implementation stage. If successfully executed, they will contribute significantly to Nigeria’s objective of reducing methane emissions and achieving near-zero routine gas flaring.
How can energy companies better balance ESG commitments with tangible infrastructural development in host communities?
Host communities remain one of the most important stakeholders in Nigeria’s oil and gas industry. Sustainable operations cannot exist without stable relationships with these communities.
The Petroleum Industry Act provides a stronger framework for community engagement by encouraging operators to work directly with host communities to identify and prioritise development needs.
Increasingly, companies are adopting Global Memoranda of Understanding (GMoUs), which promote dialogue and collaborative decision-making. Rather than imposing projects on communities, operators now engage residents in determining the most impactful investments. This collaborative approach strengthens trust while advancing both ESG objectives and sustainable community development.
Which technologies can bridge the infrastructural gaps in Nigeria’s domestic gas distribution network?
Nigeria possesses over 200 trillion cubic feet of proven gas reserves, yet domestic utilisation remains relatively low, with a significant proportion exported.
Building extensive gas pipeline infrastructure will take considerable time and investment. Therefore, practical short- to medium-term solutions are essential.
One of the most effective approaches is the deployment of virtual pipeline systems using compressed natural gas (CNG) and liquefied natural gas (LNG) transportation. LNG trucks, for example, can efficiently move large volumes of gas from production centres to demand locations without waiting for nationwide pipeline expansion.
These technologies provide practical solutions while the country continues to develop permanent gas infrastructure.
What skills should young energy professionals acquire to remain competitive in a data-driven energy sector?
The industry is no longer limited to conventional oil and gas operations. Energy transition is reshaping the sector, and future professionals must broaden their skill sets.
Beyond traditional engineering disciplines, young professionals should develop expertise in:
• Artificial Intelligence (AI)
• Digital transformation
• Sustainability
• Decarbonisation
• Carbon Capture, Utilisation and Storage (CCUS)
• Energy transition strategies
• Renewable energy technologies
• Emerging fuels such as hydrogen
Universities must also modernise their curricula to reflect these changes.
Nigeria must act quickly to maximise the value of its gas resources. The global energy landscape is evolving rapidly, and delaying investment or implementation could result in missed opportunities, just as coal eventually lost its dominance despite abundant reserves.
What Are Your Final Thoughts
Organisations such as the Society of Petroleum Engineers continue to play an important role in promoting collaboration, knowledge sharing, and awareness across the energy value chain.
However, discussions alone are not enough. Nigeria must move from dialogue to implementation by developing clear roadmaps, strengthening policy execution, and encouraging collaboration among government, industry, academia, and the media.
Only through sustained commitment and collective action can the country fully harness its abundant energy resources for national development.
