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By Adewale Sanyaolu
As 2025 unfolds, oil and gas experts are urging the federal government to swiftly implement key measures that will steer the industry towards a more progressive and sustainable future.
The experts, who on their own, are crafting strategies for growth, opined that tackling inherent challenges headlong will not only grow the sector, but increase revenue, bolster efficiency and create job opportunities for growing number of unemployed youths across the country.
At the forefront of these demands are a comprehensive overhaul of the nation’s refineries, the expansion of the CNG initiative, the strengthening of the local content policy, increased investment in infrastructure, and the reduction of excessive bureaucracy in oil and gas approvals, among others.
Mr. Ayodele Oni, Partner at Bloomfield Law Practice, a firm renowned for its advisory services and contract drafting in the energy sector, urged the Government to initiate the swift implementation of key policies.
Oni emphasised the urgent need for the full revival of government-owned refineries, highlighting that to remain competitive with both existing and emerging private refineries, the government must implement effective strategies to restore moribund facilities like the Warri and Port Kaduna refineries.
“Given the capital-intensive nature of the refineries’ reviving, the government may consider exploring some public-private partnership arrangements, while also intentionally driving budgetary allocation for that purpose. Notably, although the Port-Harcourt and Warri refineries recently commenced operations, there is a need to ramp up their production capacity for better efficiency,”
He further stressed the importance of integrating oil and gas revenue into local government coffers, especially in light of the recent Supreme Court ruling in the case of Attorney-General of the Federation vs Attorney-General of Abia State, which affirmed that local governments are entitled to direct payments of their allocated funds from the Federation Account.
“It is also imperative for the government, particularly the Federal Government, to also integrate oil and gas revenue into the local government.
Hence, part of the 13 per cent derivation funds should be paid directly to the local government areas where the host communities are located.
“Among others, this would avoid any possible mishandling of the windfall revenues by increasing the accountability of local authorities. It will also help to build a feeling of ownership of the oil and gas project among the local population by giving local communities a more tangible experience of how the resources are being invested.
“Furthermore, this would help improve coordination between recurrent expenditures and investments realized with oil revenues, versus those originated from central or regional governments or the private sector,’’, he added.
The oil and gas lawyer also advocated for stronger enforcement of local content and corporate social responsibility in oil-producing regions, stressing the need to fully leverage policies that promote local content in the industry. He specifically called for the robust implementation of the Presidential Directive on Local Content Compliance Requirements 2024, believing that it would drive greater adherence to local content regulations.
He also highlighted the urgent need for the government to address the excessive bureaucracy surrounding oil and gas approvals in 2025.
Oni lamented that navigating the approval process with regulatory bodies is often a daunting and convoluted task, characterised by multiple layers of procedures that could have been simplified and seamlessly integrated to ensure a more efficient and timely process.
“It would be helpful if the government could introduce processes simplifying the approval process, albeit without prejudice to required verifications by the regulatory bodies. The Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines 2024 (the “Contracts Directive”) should be keenly enforced.
“Also, similar other directives such be introduced and implemented for other licences such as the Petroleum Exploration Licence, Petroleum Mining Lease, Petroleum Prospecting Licence, Gas transportation Pipeline Licence, among others.
“The would help simplify licence procedures in the oil and gas and make the business environment pretty much friendly,”
In addition to the Gas Flare Commercialisation Programme, he hinted that there is a need for a dedicated (standalone) gas-to-power policy framework to drive the utilisation of gas for power generation in order to meet the country’s energy deficit.
In his submission, President, Petroleum Products Retail Outlets Association of Nigeria (PETROAN), Mr. Billy Gillis-Harris, shared the sentiments of Oni on Nigerian owned refineries, advising that the assets be handed over to reputable private companies to improve efficiency and reduce government spending.
The PETROAN boss canvassed the encouragement of competition to foster a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.
On transparency and accountability, Gillis-Harris called on government to establish a robust monitoring and evaluation framework to track the performance of downstream operators and ensure compliance with regulatory requirements.
“Government should continue to invest in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.
He further corroborated the views of the Oni on local content development, stressing that government should encourage the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
To enhance the effectiveness of CNG in 2025, PETROAN urged the government to invest in expanding CNG infrastructure by encouraging the private sector to increase access to funding and expertise while regulatory frameworks in this regard should be reviewed to reduce operational costs and attract investment.
He added that stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.
Billis-Harris listed CNG constraints to include: Inadequate infrastructure, including limited CNG stations and distribution networks, high operating costs, including the cost of compressing and transporting natural gas, limited public awareness and acceptance of CNG as a viable alternative fuel.
Others are; security concerns and vandalism of CNG infrastructure, difficulty in converting existing vehicles to run on CNG, limited availability of CNG-compatible vehicles and high initial investment costs for establishing CNG stations and infrastructure.
