Nigeria’s Energy Sector Faces Skills Crisis Amid Migration and Retirement

Nigeria’s oil and gas industry is grappling with a dire skills shortage, as decades of migration and retirements have left the sector struggling to maintain its technical expertise. This stark reality was laid bare by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, at the ongoing Sub-Saharan African International Petroleum Conference in Lagos.

Verheijen highlighted the pressing need for targeted investments in human capital to bridge the skills gap, citing a severe decline in experienced engineers, geoscientists, and project managers over the past decade.

“One of the things that has been an issue in the recent past is the issue of skilled manpower,” Verheijen stated. “Over the past decade, we have witnessed a critical gap in skilled professionals. Many industry experts are either retiring or migrating abroad, creating a severe shortage of experienced engineers, geoscientists, and project managers. So, what does this require? There’s a need for targeted investment in human capital development.”

The presidential aide revealed that President Tinubu had issued a directive on local content development to ensure the continued capacity-building of Nigerian firms, particularly through the Petroleum Technology Association of Nigeria (PETAN), allowing them to compete with global service providers.

Empowering Women in Energy

Beyond capacity building, Verheijen underscored the importance of gender inclusion in the energy sector, describing it as an underutilised resource that could unlock economic growth.

“There’s also an opportunity here to empower women,” she said. “Strategically, and because of the economic imperative it could deliver for Nigeria and indeed Africa, the question before us is not whether Nigeria and Africa have the talent; it is whether we are cultivating and maintaining it.”

She pointed out that women hold just 25 per cent of executive roles in Nigeria’s energy sector and only 21 per cent across Africa’s energy workforce, attributing the disparity to systemic barriers rather than a lack of capability.

“This under-representation is not due to a lack of capability but rather a lack of access, sponsorship, and sustained focus on developing the skilled base,” she stressed.

Verheijen vowed to push for initiatives ensuring that capable women have access to leadership opportunities in the industry, arguing that diversity is not just a moral imperative but a strategic necessity.

“Industries that embrace inclusion consistently outperform their peers. Nigeria and Africa cannot afford to sideline more than half of their population in the sector that will define the future economic trajectory of Africa,” she warned.

Tackling Youth Migration and Brain Drain

The adviser also turned her focus to the youth, cautioning that Nigeria risks an irreversible brain drain if it fails to create meaningful employment opportunities in the energy sector.

“Nigeria’s median age is 18 years, yet we are losing our young talent to emigration,” she lamented. “If we fail to provide them with meaningful opportunities, we risk an irreversible brain drain.”

She urged industry leaders to actively engage and invest in young talent, describing capacity building as the next frontier in securing the sector’s future.

Nigeria’s Energy Sector Under Tinubu’s Leadership

Verheijen asserted that Nigeria’s energy landscape had undergone significant transformation under Tinubu’s administration over the past 18 months, citing bold reforms that have attracted new investments and driven economic growth.

“In the last 18 months, the subsidy, which characterised the economy of Nigeria, has been removed, and the funds that were hitherto spent on the subsidy are now being channelled to other sectors of the economy,” she said.

She highlighted key policy shifts, including fiscal incentives for both oil and gas investments, regulatory directives on local content, and major final investment decisions, such as the $5 billion Bonga North deepwater project.

“There have also been investments in clean energy, backed by presidential directives, as well as power sector investments, all aimed at delivering a better quality of life for Nigerians,” Verheijen noted.

As Nigeria positions itself within the evolving global energy landscape—where artificial intelligence, hydrogen, and carbon capture are reshaping the industry—Verheijen called on investors and stakeholders to collaborate with the government in securing the country’s energy future.

“The PETAN members have played a vital role in our industry’s growth. As we navigate this period of transformation, I urge you to remain engaged, to invest in our local capacity, and to collaborate with the government to ensure that Nigeria, and indeed Africa, remains the premier investment destination,” she concluded.

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