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By Adewale Sanyaolu
Strong indications emerged yesterday that key government regulatory agencies empowered to implement President Bola Tinubu’s Presidential Directive on the Reduction of Petroleum Sector Contracting Costs and Timelines are failing to comply, raising concerns that Nigeria’s 2.5 million barrels-per-day oil production target for 2026 may be jeopardised.
Issued on February 28, 2024, the Presidential Directive was designed to boost investment and operational efficiency in the oil and gas sector by slashing contracting cycles from as long as 36 months to a maximum of six months.
The Directive seeks to eliminate bureaucratic bottlenecks, reduce project costs, attract investment, and align Nigeria’s petroleum industry with global best practices.
However, two years after its issuance, the Petroleum Technology Association of Nigeria (PETAN) has raised the alarm that little or nothing has changed between 2024 and now.
PETAN President, Mr. Wole Ogunsanya, made the disclosure in his remarks at the Nigerian International Energy Summit (NIES) 2026, which began yesterday under the theme “Energy for Peace and Prosperity: Securing Our Shared Future.”
He criticised the Nigerian Content Development and Monitoring Board (NCDMB), NNPC Ltd, the Nigerian Upstream Investment Management Services (NUIMS)—a subsidiary of NNPC Ltd—and other regulators for persistent delays in oil and gas contracting processes, despite the Presidential Directive mandating the conclusion of tenders within six months.
Ogunsanya said some tenders submitted by PETAN members shortly after the Directive was signed in 2024 were yet to be approved as of 2026.
According to him, the implication of the delays is the growing likelihood that Nigeria may miss its 2.5 million barrels-per-day oil production target set for 2026.
“The media here today should quote me. Completion of tenders within six months is not happening. I want this message taken to the President so that he knows that the Directive is not fully in force,” he said.
For its part, the NCDMB has consistently reiterated that it has reduced its touchpoints from nine to five for open and selective tenders, and to four for single-source contracts.
Ogunsanya disclosed that PETAN is currently monitoring ongoing tenders, stressing that several projects scheduled to commence in 2026 and 2027 remain stalled due to prolonged contracting cycles.
Highlighting findings from a PETAN study, he said the current pace of contract awards falls significantly short of the presidential benchmark of completing tenders within six months, noting that most contracts are structured for five years, with a possible two-year renewal.
He added that execution gaps persist despite a significant increase in contracting activities—including expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations—since the fourth quarter of 2024.
Ogunsanya identified prolonged internal approvals, delayed Final Investment Decisions (FIDs), slow commercial negotiations, extended regulatory and compliance procedures, and funding and financial close challenges as major bottlenecks undermining project delivery.
The PETAN president therefore called on the Presidency to intensify monitoring of the contracting process to ensure that awards and project execution align with presidential timelines, warning that continued delays could erode investor confidence and slow sector growth.
