Nigeria’s oil sector is facing mounting operational delays and missed opportunities due to entrenched bureaucratic bottlenecks, according to Neconde Energy Limited, a key player in the country’s upstream oil and gas space.
Speaking at an industry forum in Abuja this week, senior executives from Neconde warned that excessive regulatory hurdles and slow decision-making processes are stalling investment and limiting production output in Africa’s largest oil-producing nation.
“The potential of Nigeria’s oil and gas industry remains immense, but the pace of reform and execution is far too slow,” said Victor Briggs, Executive Director at Neconde. “We’re losing valuable time — and money — navigating red tape that should have been cleared years ago.”
Briggs pointed to delays in project approvals, overlapping regulatory mandates, and inconsistent policy implementation as major impediments to sectoral efficiency and investor confidence.
Impact on Production and Revenue
Neconde, which operates assets in the Niger Delta, says production volumes are being constrained by procedural lags in obtaining key government approvals — including licenses, permits, and export clearances.
Industry analysts say these challenges are not unique to Neconde, and reflect broader issues affecting operators across Nigeria’s oil value chain.
“The Petroleum Industry Act (PIA) was meant to streamline governance and unlock growth, but progress has been uneven,” said Ifeoma Udoka, an independent energy consultant. “We still see duplication of functions between agencies, and that’s hurting both local companies and international investors.”
Calls for Urgent Policy Action
Neconde is urging the federal government and relevant regulators — including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) — to prioritize reforms that will accelerate approvals and create a more transparent operating environment.
In particular, the company called for:
- Digitization of licensing processes
- Clearer inter-agency coordination
- Strict timelines for project approvals
With Nigeria seeking to boost crude output and attract fresh capital in the face of global energy transition pressures, stakeholders say streamlining bureaucracy is not just a matter of convenience — it’s an economic necessity.
