Nigeria’s Petroleum Industry Act Yielding Remarkable Results, Says Deputy Speaker Kalu

 

The Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu has described the Petroleum Industry Act (PIA) 2021 as a game-changer for Nigeria’s economy even as he emphasized the need for continued legislative attention to address lingering implementation challenges.

 

Delivering a lecture titled “Legislation as an Enabler of Compliance, Investment, and Sector Growth: The Role of the National Assembly in Strengthening the Post-PIA Petroleum Landscape” at an event jointly organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and General Counsel and Legal Advisers Forum for Midstream and Downstream Petroleum Companies in Nigeria 2025″, Kalu said that the PIA has brought about significant improvements in the petroleum industry, including over $16 billion in investment commitments, 1.69 million barrels per day in oil production, and ₦50.88 trillion in revenue generation.

 

Kalu was represented by the Chairman, House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere at the event themed “Advancing a Collaborative Compliance Culture in Nigeria’s Midstream and Downstream Petroleum Sectors” said that Nigeria emerged as the leading destination for oil and gas investments in Africa in 2024.

 

He said: “Just two years post-enactment, the impact of the PIA is undeniable. We have witnessed an astonishing $16 billion in investment commitments, a staggering 28,991% increase from our pre-PIA baseline of a mere $0.055 billion in 2020. These are not just numbers; they represent jobs, infrastructure, and a renewed sense of purpose for our nation’s most vital economic engine.

 

“And critically, our Oil Production in December 2024 reached 1.69 million

barrels per day.

 

“It is with immense pride that I can state that Nigeria emerged as the leading destination for oil and gas investments in Africa in 2024, accounting for three out of four Final Investment Decisions announced by global oil and gas majors. This is not by chance; it is a direct consequence of the PIA’s meticulously crafted, investor-friendly provisions.

 

“This inflow of capital is a vote of confidence in Nigeria’s petroleum sector

and a validation of the National Assembly’s diligent work on the PIA.

 

“The impact of the PIA on sector growth is vividly evident in Nigeria’s oil production recovery and its subsequent contribution to our national economy. Our oil production reached 1.69 million barrels per day in November 2024, a significant milestone marking the highest level in 44 months. This is a dramatic turnaround from the sector’s previous decline, where production had plummeted by 23% between 2020 and 2022. We are not just recovering; we are surging forward.”

 

The Deputy Speaker noted that the statistics validate the effectiveness of the PIA and demonstrate the power of strategic legislation in driving economic transformation.

 

“The PIA experience offers a compelling and inspiring model for other resource-dependent nations seeking to transform their extractive industries through legislative action. It demonstrates, with irrefutable evidence, that with political will, broad stakeholder engagement, and comprehensive regulatory reform, legislation can indeed serve as a powerful catalyst for economic transformation and sustainable development in the petroleum sector.”

 

Kalu also highlighted the need to address the persistent issue of oil theft, which costs Nigeria approximately $79.4 million daily.

 

To overcome the challenge, he emphasized the importance of enhanced oversight, targeted legislation, and unwavering support for regulatory agencies.

 

“By diligently building on the robust foundation laid by the PIA, Nigeria can not only achieve its goal of becoming a leading global petroleum producer but also ensure sustainable development for our host communities and the broader Nigerian economy,” Kalu added.

 

In his welcome address, the Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Ogbugo Ukoha said this year’s dition of General Counsel and Legal Advisers Forum for the Oil and Gas Midstream and Downstream operators in Nigeria revolves around sharing insights for enhancing regulatory compliance and effective operations in the sector.

 

He said: “The role of legal practitioners is critical across the midstream and downstream energy business value chain in the promotion of optimal regulatory compliance to all set rules and standards of operations in our complex operational and volatile market environment.

 

“Over the next two days, I am sure that strategic and pragmatic solutions will be established from this forum that shall enhance the overall performance of the Midstream and Downstream sector as we all work towards the creation of shared value for our investors and most importantly the extensive market of Nigeria and the region.

 

“The Petroleum Industry Act 2021 has fundamentally restructured Nigeria’s petroleum industry by delineating regulatory responsibilities of our Industry into the Upstream and the Midstream and Downstream Petroleum operations. The Act prescribes that all operations in the midstream and downstream sector can only be conducted under appropriate licenses, permits and authorizations granted by the NMDPRA and the authority is fully guided by the provisions of the law in providing regulatory oversight of the Industry.

 

“As a result of the feedback received from our stakeholders on the need to strengthen regulatory compliance through simplified and clearer regulations for the Midstream and Downstream operations, NMDPRA is implementing an inclusive stakeholder process of streamlining the gazetted and published regulations to mitigate the complexities of navigating and implementing numerous Regulations; eliminate inconsistencies and repetitions across multiple regulations; streamline regulatory processes for ease of business; and encourage investments in the midstream and downstream petroleum industry”, he said.

 

Presenting a paper on “Aligning the Legal Advisory Role with Regulatory Mandates and Operational Realities in the Midstream and Downstream Petroleum Industry”, the NMDPRA Secretary and Legal Adviser, Dr Joseph Tolorunse said legal advisers must be familiar with the licence regime under the PIA.

 

“Legal advisers must understand the licence regime under the PIA. They have various licences under the PIA. Don’t be mistaken, there are over 17 types of licences under the PIA that exist within the mainstream and outsourced space. So, legal advisors must understand the penal licence regime under the PIA.

 

“Legal advisers are encouraged to integrate alternative peaceful resolution into their internal policies, contracts, agreements, and peaceful management processes.

 

“Legal advisers must be accountable for monitoring and reporting involving regulations. Advising must be made in compliance, rather than reactive reaction. Engaging legal advisers and participating in industry consultation and supporting the government in relations and policy and advocacy. This approach ensures that businesses are not only compliant, but also adapted to policy trends”, he said.