‘Blame regulators for contract delays despite President Tinubu’s order’, says PETAN

The Chairman, Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, has blamed petroleum industry regulators for persistent delays in oil and gas contracting processes, despite a presidential directive requiring tenders to be concluded within six months. Ogunsanya disclosed this during his presentation at the opening ceremony of the Nigeria International Energy Summit (NIES) 2026 in Abuja, yesterday. The Presidential directive is aimed at accelerating project execution across the energy sector.

Recall that President Tinubu in March 2024, issued Executive Order (OE) 42 mandating reduction of petroleum sector contracting costs and timelines, being part of a wider set of oil and gas reforms signed by the administration.

“We are not concluding contract processes in six months as directed and reports sent to the Presidency often fail to reflect the realities faced by industry players,” the PETAN boss said.

Ogunsanya disclosed that his Association is currently monitoring ongoing tenders, emphasising that several projects scheduled to commence in 2026 and 2027 remain stalled due to prolonged contracting cycles.

He noted that execution gaps persist despite a significant increase in contracting activities involving expressions of interest, tenders, pre-qualifications, and technical and commercial evaluations since the fourth quarter of 2024. He also identified prolonged internal approvals, delayed Final Investment Decisions (FIDs), slow commercial negotiations, extended regulatory and compliance procedures, and funding and financial close challenges as major bottlenecks undermining project delivery.

According to him, a study conducted by PETAN revealed that the current rate of contract awards falls significantly short of the Presidential benchmark of completing tenders within six months, with most contracts structured for five years and a possible two-year renewal.

Ogunsanya therefore called on the Presidency to give closer monitoring of the contracting process to ensure that awards and project execution align with presidential timelines, warning that continued delays could weaken investor confidence and slow sector growth.