By George Ozalla
The Nigerian oil and gas industry is on the precipice of imminent collapse due to numerous cumbersome and unfriendly regulatory environment, according to Engr. Chichi Emenike, Acting Managing Director and Gas Asset Manager of Neconde Energy Limited. Speaking to journalists in Abuja during the just concluded NOG week, Emenike spotlighted the urgent need for the Federal Government to tackle the lots of challenges hampering investment in the upstream petroleum sector.
Emenike observed that oil and gas operators struggle with almost 500 different fees and levies imposed by various government agencies, deterring financing and investor confidence. Despite government efforts to improve the ease of doing business, regulatory bottlenecks are making it increasingly difficult to attract private capital. Emenike stressed that when finance is brought into an ecosystem, it is expected to yield profit in order to remain viable.
However, Emenike commended President Bola Tinubu’s administration for introducing policies, reforms, and initiatives that signal a shift in approach. However, she pointed out that such reforms must be felt on the ground.
She further called for deregulation and full liberalization of gas pricing and infrastructure, comparing the current gas investment environment to the early days of the telecoms revolution. Emenike urged the government to allow investors to do their business, bring in gas, and develop upstream assets. Nigeria’s oil sector has vast potential, with 210 trillion cubic feet of gas reserves, but much of it remains untapped, she reaffirmed.
“When I borrow money, it must be repaid,” Emenike emphasized, highlighting the need for a viable and sustainable industry.
Neconde Energy has expanded production in its OML 42 asset, growing from a shut-in asset to one producing over 50,000 barrels of oil per day. The company plans to take a Final Investment Decision on its larger gas reserves before the end of the year to expand Nigeria’s proven gas capacity.
The oil and gas industry in Nigeria is facing significant challenges due to bureaucratic bottlenecks and a tough regulatory environment.
