Nigeria LNG Limited (NLNG) has said the country needs stable investment policies, reliable commercial agreements and stronger investor confidence to secure funding for its oil and gas projects.

The company’s Managing Director and Chief Executive Officer, Adeleye Falade, said Nigeria’s substantial hydrocarbon reserves would not automatically translate into investment without assurances that projects could generate predictable returns over the long term.

Speaking at the 32nd Nigerian Economic Summit in Abuja, Falade explained that investors and lenders considered the stability of investment terms, the availability of buyers for future production and the ability of project operators to meet their obligations before committing funds.

He made the remarks during a panel session titled, “Unlocking Nigeria’s Oil Potential: The Push for More Oil.”

Falade noted that major energy projects require significant upfront capital, while investors may need 20 to 30 years to recover their investments. He said maintaining confidence in the terms governing these projects throughout their lifespan was therefore essential.

He added that access to quality oil and gas reserves was only one part of the financing equation, stressing that predictable earnings and consistent implementation of agreements were equally important in attracting capital.

The NLNG chief pointed to the company’s Train 7 expansion as an example of how a credible investment proposition could secure financing even during periods of economic uncertainty.

The project secured financing in 2020, at the height of the COVID-19 pandemic, demonstrating the importance of investor confidence in advancing large-scale energy infrastructure.

Falade’s comments highlight the need for Nigeria to strengthen its investment environment to attract the long-term funding required to develop its petroleum resources, expand production and support growth across the energy sector.