The oil and gas industry in Nigeria is facing significant challenges due to bureaucratic bottlenecks and a tough regulatory environment, according to Neconde Energy Limited, an indigenous operator.
The company’s acting Managing Director and Gas Asset Manager, Chichi Emenike, stated that the country’s regulatory stance on gas pricing and multiplicity of fees imposed by various agencies are stifling progress and deterring much-needed capital inflows.
Speaking at the Nigerian Oil and Gas 2025 Conference in Abuja, Emenike noted that most of the financing currently sustaining Nigeria’s oil and gas sector is sourced privately, while government indecision and institutional delays continue to hinder progress. She emphasised that financing is not charity, and investors need to be sure they can make a profit.
The operator cited recurring delays and multiplicity of fees as major operational bottlenecks that need to be addressed. She welcomed recent policy statements from the Tinubu administration aimed at reforming the sector, but insisted that such reforms must be felt on the ground.
Emenike called for deregulation and full liberalisation of gas pricing and infrastructure, comparing the current gas investment environment to the early days of the telecoms revolution. She urged the Federal Government to look into the possibility of a cost-reflective tariff for gas to the power sector to address the challenge of illiquidity.
The operator warned that sections of the Petroleum Industry Act still allow the government to influence gas prices, undermining investor confidence and strangling upstream development.
She emphasised the need for Nigeria to be more intentional about its development goals and stop comparing itself unfavorably to the Western world.
Neconde Energy has grown production from 10,000 barrels per day to 50,000 barrels in its OML 42 asset, which spans 814 square kilometers in the Niger Delta.
The company is planning to take a Final Investment Decision on its larger gas reserves before the end of the year as part of efforts to expand Nigeria’s proven gas capacity.
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