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Experts in Nigeria’s oil and gas industry have decried the impact of political interference, corruption as well as weak institutions on the sustainability of the oil and gas sector, stating that it has continued to undermine the impacts of government’s policies.
Speaking during the 2025 Society of Petroleum Engineers Oloibiri Lectures series and Energy Forum (SPEOLEF 2025) held in Abuja on Thursday, experts stressed on the need for a strengthened regulatory enforcement, fostering innovation, and promoting local content development, as a means to ensure a competitive and sustainable energy future in Nigeria.
Delivering his keynote lecture, Abdulrahman Mijinyawa, general manager, development and subsurface Nigeria, Renaissance Africa Energy Company Limited said that the global energy sector is experiencing a paradigm shift that is driven by the urgent need for sustainability.
According to him, government policies serves as a catalyst for transition to sustainable energy by establishing regulatory frameworks and aligning sustainability goals with economic and social priorities.
He explained that policies, industry regulations, and international agreements shape the sustainability landscape of the oil and gas sector by setting compliance standards, offering incentives, and fostering investment.
“Some key policies include the PIA, which enforces stricter environmental compliance operations, the National Oil Spill Detection and Response Agency oversees oil spill monitoring and imposes penalties for non-compliance, encouraging better environmental practices and the Gas Flaring Prohibition Penalty Law has introduced measures to curb gas flaring through programs like the NGFCP.
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“Despite these strong policies, enforcement remains a challenge due to corruption, politicalinterferenceand weak institutional capacity,” he said.
He also noted that a sustainable energy system requires efficient and resilient supply chains that minimize waste, minimize resource use, and key strategies including responsible resourcing, decentralization, circular economy principles, and low-carbon logistics.
He added that one of the most significant sustainability challenges in the oil and gas supply chain is carbon emissions related to product manufacturing, sourcing, delivery, and operation support.
“Sustainability starts with responsible sourcing of materials and equipment, adopting sustainable procurement policies to ensure that suppliers adhere to environmental and ethical standards is imperative.
“Regular supply chain sustainability audits will help ensure compliance with environmental regulations. Also, optimized logistics, efficient transportation, and storage strategies will lower fuel costs and improve overall supply chain performance. As I remarked earlier, technology plays a key role in making supply chains more sustainable.
“The adoption of digital technologies can significantly enhance supply chain sustainability in the oil and gas industry. AI-driven demand forecasting optimizes procurement and inventory management, reducing waste,” he added.
In his remarks, Joseph Mordi, general manager, Wells and geoscience operation, Shell Nigeria Exploration & Production Company Limited, said that the expected increase in global energy demand, with significant investment in oil and gas sector poses both an opportunity and a challenge for Nigeria, adding that Nigeria will be at the forefront of both the energy demand as well as the bulk of the supply.
He explained that globally, countries are striving to deliver a new era of economic growth driven by technologies like AI, increasing living standards, population growth and Nigeria is no exception.
“As our economy continues to emerge, we are actually being projected to grow by 3.5 percent in 2025 and 3.7 percent in 2026 by the World Bank. We also know our population is in an upward trend.
“That means our energy consumption is increasing. How do we provide sustainable energy for our people? Is 3 million barrels enough? How do we know what we need? That is why it’s important that we should be able to develop scenarios that deal with alternative pathways of what energy mix will require in order to achieve energy security.
“It is necessary for us to act responsibly with a focused strategy to ensure this demand is met and the supply is provided in a sustainable manner.
“The pertinent question we need to ask ourselves today is, what is the Nigeria energy scenario? What is driving our policy and what strategy are we developing to be able to have alternate pathways to achieve energy security and provide the energy that our growing population demands?,” he said.
Speaking further, he noted that the imporatnce of government policies cannot be overemphasized as they serves as a cornerstone in the pursuit of energy sustainability.
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