Nigeria’s oil and gas sector, despite boasting Africa’s largest oil reserves, is struggling to attract investment due to excessive bureaucracy. A complex web of regulations involving up to 20 government agencies creates a major hurdle for investors.
Foreign investors complain that overlapping responsibilities and conflicting mandates among these agencies lead to delays, confusion, and increased costs. This discourages new investments and hinders the expansion of existing projects. The report highlights the frustration of dealing with numerous human gatekeepers within each agency.
In contrast, smaller African oil producers like Angola have streamlined their approval processes, often requiring investors to navigate only two regulatory bodies. This efficiency makes them more attractive destinations for investment, as evidenced by the growing interest they are receiving.
Source: Business Day