Nigeria’s ambition to increase crude oil production faces a critical test in operational efficiency, with industry leaders warning that policy misalignment and high costs could undermine growth targets.
Speaking at the 2025 Practical Nigerian Content (PNC) Forum in Yenagoa, Hazizi Hassan, executive director and production manager for Esso Exploration and Production Nigeria Deepwater Limited (Esso E&P), said.
“Nigeria’s aspiration to grow crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030 is bold and achievable—but only if we focus on operational efficiency, reduce complexity, and create a predictable investment climate”, during the panel session on “Streamlining Project Delivery for Improved Efficiency.”
Policy reforms and regulatory hurdles
Hassan acknowledged that the Petroleum Industry Act (PIA) has strengthened investor confidence by addressing key structural challenges. However, he expressed concern that recent amendments in the Nigeria Tax Act 2025 have rolled back incentives, increasing uncertainty for long-term investments.
On the Presidential Directives on Local Content, Hassan called for reforms that extend beyond compliance. “True local content is not about short-term compliance; it’s about building sustainable capacity that strengthens Nigerian companies for the long haul. Partnerships must attract investment and remain globally competitive,” he said. “This is how we deliver real value to Nigeria,” he added.
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He highlighted the inefficiency of middlemen in contracting processes, who often inflate costs without adding value, and advocated for a lifecycle-based approach to capacity development.
The cost of doing business remains a critical challenge. Hassan estimated that Nigeria’s operational costs are more than 40 percent higher than peer countries due to overlapping regulatory roles and duplicated fees. “This makes deepwater development less competitive and slows progress on critical projects,” he said.
The forum underscores the urgent need for coherent policies and streamlined processes if Nigeria is to meet its ambitious production targets while fostering a robust local industry.
Hassan concluded with a call for closer collaboration between regulators and operators. “This is a defining moment for Nigeria’s energy sector. Aligning policy, investment, and execution is essential not just for increasing production, but for delivering sustainable prosperity for generations to come.”