Deloitte flags policy gaps slowing oil sector revival

The Deloitte report on West Africa’s Oil and Gas Outlook highlights key challenges and opportunities in Africa’s energy sector.

It warns that inconsistent policies, unclear regulations, and limited government-industry collaboration continue to slow energy investments across the continent. From Tanzania to Ghana and Nigeria, industry players are seeking more predictable, transparent, and investment-friendly policy frameworks.

Deloitte observes that many African governments act as short-term revenue extractors rather than industry enablers.

This perception undermines trust and deters long-term investments. Projects such as the East African Crude Oil Pipeline and Tanzania’s LNG developments have been delayed by complex government agreements.

In Ghana, upstream oil production has steadily declined over the past five years, with no new petroleum agreements signed. This has been attributed to misaligned government priorities and investor expectations.

However, the new Ghanaian administration is prioritising reopening the sector in 2025, taking early steps towards improved dialogue and licensing reform.

The report cites Nigeria’s Petroleum Industry Act as progress towards regulatory clarity but warns that implementation gaps persist, calling for streamlined regulations, tax certainty, and consistent enforcement across the value chain.

African National Oil Companies face increasing pressure to become commercially competitive, similar to Saudi Aramco and QatarEnergy.

Angola’s Sonangol is undergoing reforms to boost transparency and attract investors, while Nigeria’s NNPC Limited is transforming into a commercial entity with plans for a partial public listing. Ghana’s GNPC is pursuing similar changes, although progress is slower.

Deloitte suggests these shifts could usher in a new era of collaboration and corporate accountability in Africa’s energy landscape.

The report urges governments and state-owned companies to evolve from regulators to partners, creating stable, predictable environments to attract long-term capital.

The report concludes that the future success of Africa’s oil and gas sector will depend less on resource abundance and more on policy consistency, transparency, and trust.

Ghana and its regional counterparts’ next phase in energy development hinges on these factors for sustainable growth and investor confidence.