Energy Policies and Oil Supply Bottlenecks in Nigeria: Problems and Prospects

Abstract

Nigeria is one of Africa’s largest oil producers, but persistent challenges within the oil supply chain have undermined sustainable development and energy security in the country. The study investigates the energy policies bottlenecks affecting oil supply in Nigeria by examining the effects of existing energy security and oil policies, identifying limitations to oil supply, assessing prospects for long-term energy security, and proposing policy options for sustainable energy security. The study is situated within the Nigerian energy sector, with a specific focus on the oil industry and its role in national energy security and economic stability. A qualitative research design was adopted. Data were collected through documentary analysis of official policy documents, scholarly articles, and reports from international energy agencies. The findings reveal that the Nigerian oil supply chain is constrained by infrastructural decay, pipeline vandalism, oil theft, policy inconsistency, and administrative corruption. The dominance of oil in national energy policy has limited diversification into alternative energy sources, particularly the effective development and utilization of natural gas. Although the oil industry remains central to Nigeria’s energy economy, persistent structural and governance-related bottlenecks continue to undermine domestic supply, fiscal stability, and the exchange rate. Addressing these is essential for achieving long-term energy security and sustainable development. This study contributes to the discourse on energy security in Nigeria by recommending stronger regulatory controls, investment in modern infrastructure, transparent governance systems, policy reforms, and enhanced public–private partnerships to improve efficiency and sustainability in the energy sector.