Nigeria’s ambition to quadruple its daily production of crude oil to three million barrels by 2030 is encountering increasing obstacles, and industry players are cautioning that the goal would become unachievable in the absence of prompt government action.
In order to reduce bottlenecks that are impeding project execution and driving up costs, operators are adamantly demanding urgent import duty waivers on vital oil and gas equipment as well as quicker port clearance.
On the fringes of the Offshore Technology Conference in Houston earlier in May, Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), amplified the demand.
He claims that the industry is in an emergency phase that necessitates immediate, focused policy intervention.
He emphasized that increasing production from the current 1.5 million barrels per day would necessitate significant investments in machinery and infrastructure, especially in the gas sector. He also mentioned that tax incentives would provide new funding, expedite the deployment of assets, and bolster Nigeria’s production capacity.
Ogunsanya said in this interview that although the pharmaceutical and agricultural industries have profited from these waivers, the oil and gas sector—the hen that lays the golden eggs—must not be left behind.
In addition, he stated that in order to ensure its energy future in the face of shifting global economic and geopolitical realities, Africa must immediately increase regional cooperation and local capacity building.
Ogunsanya, the CEO of Geoplex Drillteq Limited, emphasized the difficulties Nigerian and African attendees at this year’s conference faced, especially in obtaining US visas, which he claimed had a major impact on participation and exhibition activities.
The expansion of Nigeria’s domestic oil and gas capacity, the significance of regional collaboration, Africa’s aspirations for energy security, and the growing involvement of PETAN member businesses in significant upstream projects were among the other topics he covered in great detail.
OTC 2026 overview and projections for the future
OTC 2026 was a significant turning point. The number of our members and other Nigerian businesses that could have attended this year’s conference to exhibit, highlight Nigeria’s capabilities, and interact with technology owners, equipment manufacturers, and investors was significantly impacted by the difficulties associated with traveling to the United States, as we all know.
Due to the difficulties in obtaining American visas, we were severely hindered this year. In fact, you would note that the exhibition rooms were less packed this year compared to prior editions—not only for Nigeria. Wider gaps were between booths, and some areas were completely enclosed. Attendance was, in my opinion, only half of what we had last year.
Nigeria was not the only country facing this difficulty. Participants from numerous nations were impacted. Unfortunately, this scenario in the United States had a significant impact on OTC, which continues to be the world’s leading oil and gas conference.
We are happy, nevertheless, that PETAN and the Nigerian team managed to keep the session lively and participatory. In my opinion, the Nigerian sector has seen an increase in visitors during the past three days. We also thank Nigerians living in the United States for coming out in big numbers to support us and make sure the event was a success in spite of the challenges we encountered.
The subject
At PETAN, we spend a lot of time strategically examining the industry’s future and attempting to predict events over the next five to 10 years. Thus, after much consideration, the theme for 2026 OTC, “Africa’s Energy Transformation: Scaling Investment, Technology, and Local Capacity for Sustainable Growth,” was carefully chosen.
In terms of economics, energy sourcing, requirements, and distribution, the world is actually changing quickly and becoming more regional.
For example, after the wars in Iraq and the Middle East, the United States purposefully made significant investments in shale gas production and exploration years ago. America opened up options and technologies to utilize shale gas resources after realizing it required energy security.
Similarly, nations like Canada and Brazil are concentrating on safeguarding their energy future. While China is making significant investments in renewable technology, batteries, and electric vehicles, Europe is actively seeking renewable energy for sustainability.
The impact is extremely evident for Africa. Additionally, we need to get ready for energy security. Africa must realize that its current natural resources will play a major role in ensuring its energy security in the future.
Africa may not yet be at the forefront of battery vehicle technology, but we have a wealth of gas and oil resources. Petrochemicals are still necessary for renewable technology, thus oil and gas will be important for decades to come. For instance, petrochemical chemicals are used to make the interiors of electric cars. Therefore, it is impossible to fully isolate renewable energy sources from gas and oil.
The main takeaway is that Africa needs to work together more closely. To ensure energy security on the continent, we need more robust networking across African nations. With more than 128 billion barrels of oil under African soil and massive gas reserves dispersed over nations like Nigeria, Algeria, Libya, Mozambique, and Senegal, Africa holds more than 10% of the world’s oil and gas reserves.
Effectively utilizing these resources is a difficulty.
One of Africa’s biggest issues is still energy poverty. People who have access to energy can keep medications, process agricultural products, preserve food, and overall live better. Life expectancy and per capita energy usage are directly correlated. Africa continues to struggle with low energy consumption and lower lifespans, while countries with higher energy consumption often have longer life expectancies.
Africa must not be left behind because of this. Collaboration and information exchange are two methods to prevent that, which is why PETAN supported the creation of the African Local Content Roundtable and related projects.
Additionally, we are happy about the African Energy Bank’s July 2026 start. Beyond funding, though, the main concern is who will carry out the work. Africa cannot keep hiring foreigners to handle every facet of energy development. With more than a billion people living here, we need to provide work for Africans.
This explains why PETAN still supports the creation of local content. Indigenous capability has been greatly enhanced by Nigeria’s local content regulations, particularly the Nigerian Oil and Gas Industry Content Development Act of 2010.
Nigeria’s current oil and gas service capacity is arguably five times larger than the combined capacity of several other African nations. Therefore, it is our duty to assist other African countries.
Nigerian engineers have gained a great deal of knowledge from multinational corporations that have been operating in the country for over 70 years. That experience gave rise to businesses like Renaissance and a number of PETAN member companies.
Through cooperation, what took Nigeria 70 years to do may now be done much more quickly throughout Africa. African nations can use Nigerian expertise to convey knowledge in ten to fifteen years rather than waiting decades.
Participation of indigenous businesses in oil and gas projects
As everyone knows, it has been challenging for Nigeria to produce new Final Investment Decisions (FIDs) throughout the years, but in the past two years, a number of significant projects have begun to go forward.
To keep an eye on these opportunities and gauge PETAN members’ involvement in significant projects, PETAN established a Business Strategy Committee.
All indigenous businesses are urged to aggressively bid on open contracts. I can state with confidence that our members are already in the forefront of several important projects, even if the committee is still gathering detailed statistics.
For example, one of our members is participating in the design of some of the offshore infrastructure for the Bonga project. Several PETAN members are involved in the Ubeta project, and several of the gas wells’ drilling rigs are owned by PETAN member businesses.
This shows that Nigerian businesses now have the ability to compete on a global scale. We are able to provide services on par with those of foreign companies, frequently at a cheaper cost.
Due to lower local operating costs, several of our members actually charge less for services in Nigeria than they would in nations like Angola. Working in Nigeria also enables us to keep more value in the economy and hire more Nigerians.
Additionally, PETAN members are involved in initiatives including ExxonMobil, Chevron, and other operators. Our organizations are actively competing and winning contracts based on technical proficiency and merit in deepwater, swamp, and onshore operations.
Our goal is obvious. We want indigenous enterprises to secure at least 25 to 30 percent of the overall value of large industry projects since PETAN makes up a significant share of Nigeria’s local oil and gas capability.
Crucially, we are not requesting favors. Through defined tendering procedures, our members are competing while exhibiting their technical prowess and adhering to industry norms.
Import duty waivers are necessary.
That is a crucial matter. Strategic sectors that need special attention are identified by every administration. Governments occasionally even declare emergency measures in areas deemed vital to the advancement of the country.
Because the Nigerian government recognizes the wider economic benefits, industries like agriculture and healthcare already profit from import duty waivers and incentives.
Critical oil and gas equipment should be treated in the same way. A few of our members have petitioned the government to waive import taxes on specialized equipment that is required for operations.
The reasoning is simple. Increased oil and gas activities create jobs, investments, and higher national revenue, therefore the long-term economic gains outweigh any short-term financial loss to the government from duties.
I am aware that there are continuous conversations in government circles about ways to make doing business easier for the industry, especially with regard to equipment clearance and customs procedures. These are crucial changes that can greatly lower project costs and boost indigenous businesses’ operational effectiveness.
Mrs. Olu Verheijen, the President’s Special Advisor on Energy for Oil and Gas, has been keeping an eye on the industry, and there are a number of active projects, particularly in the gas sector. Exemptions from import duties are possible, especially in light of the industry’s urgency.
At the moment, Nigeria produces about 1.5 million barrels every day. Production is between 1.4 million barrels per day if condensates are eliminated. The government’s goal is to achieve three million barrels per day by 2030, and it is anticipated that we will reach two million barrels per day by the following year.
This needs to be handled as an emergency. Only a small portion of the production value that will ultimately result from it is represented by the equipment that we are importing.
For example, if I buy $1 million worth of equipment and have to pay 20% import duty, that comes to $200,000. Alternatively, I may purchase more equipment from the Original Equipment Manufacturer (OEM) with that same sum. I could inform the OEM that I have a million dollars, request three pieces of equipment, and then pay the remaining amount at a later time.
The country’s equipment capacity would increase as a result of the tariff exemption.
In order to add value to production, we will work with the Office of the Special Adviser and the pertinent government authorities to investigate the possibility of securing duty exemption for legitimate oil and gas equipment being imported.
There should be a structure that permits such imports to benefit from concessions if an operator certifies that certain equipment is required for projects like Bonga North or other developments and NNPC Limited acknowledges that the equipment would assist further oil or gas production.
For instance, the government should be able to substantiate a company’s claim that the technology will help create an extra 100 million standard cubic feet of gas.
In addition to duty alleviation, the ports should implement a unique clearance procedure to prevent needless delivery delays.
But according to PETAN members’ experiences, there aren’t as many delays as there used to be. I can state that equipment clearance has frequently been finished in a week or two.
From PETAN’s perspective, I think the Nigeria Customs Service has been largely helpful and understands the significance of these initiatives.
However, I still believe that tax relief is the most important problem. This should be handled by the government in the same manner that it supports other critical businesses where importing assets and equipment into the nation is urgent and important.
Hon. Dr. Philip “Okanga” Agbese, a transformative leader in Enone. Discover his achievements, community projects, and vision for 2027
