Former Vice President Atiku Abubakar has urged the Federal Government to ensure transparency and national interest in the proposed amendment of the Petroleum Industry Act, warning that non-transparent processes could erode investor confidence and weaken Nigeria’s sovereignty over its natural resources.
His warning comes amid reports that the Office of the Attorney General of the Federation has informed certain agencies of President Bola Tinubu’s approval of amendments to the PIA. According to the reports, the proposed changes are intended to address escalating fiscal leakages and revenue shortfalls in the oil and gas sector.
Reacting in a statement shared on his official social media handles, Atiku described the development as troubling, particularly given its implications for equity divestments in major joint ventures.
“Recent developments surrounding the proposed amendments to the Petroleum Industry Act and the planned divestment of significant equity in key joint ventures within the oil and gas sector are disconcerting,” he said.
Atiku stressed that while he has consistently supported the liberalisation of the energy sector and the restructuring of underperforming state-owned enterprises, including through privatisation where necessary, such efforts must be rooted in transparency, national interest, and long-term strategic value.
He recalled that the PIA was enacted to bring clarity, accountability, and investor confidence to Nigeria’s historically opaque petroleum sector. Any attempt to alter its key provisions, he argued, must therefore be handled with caution and wide stakeholder consultation.
“The Petroleum Industry Act was enacted to bring clarity, accountability, and investor confidence to a sector long plagued by opacity. Any attempt to amend its core provisions must be approached with caution and broad stakeholder engagement,” he emphasised.
The former Vice President raised concerns over reports that the Federal Government plans to reduce Nigeria’s stakes in critical joint ventures such as RAEC JV, Oando JV, and Seplat Energy JV. He warned that selling down the country’s holdings, especially under terms perceived to favour a small circle of insiders or foreign interests, could jeopardise Nigeria’s control over its most strategic resources.
He added that poorly managed reforms of this nature could erode public trust, destabilise the petroleum sector, and compromise the country’s energy security.
“The Federal Government must ensure that any privatisation exercise is conducted with full transparency, guided by competitive bidding, and subject to rigorous public scrutiny,” Atiku said. “The process must reflect our shared commitment to protecting Nigeria’s economic future and ensuring that the benefits of our natural resources are equitably distributed.”
He further cautioned against what he described as the temptation to sacrifice long-term national stability for short-term financial gains.
“We must resist the temptation to pursue short-term gains at the expense of Nigeria’s national interest and long-term stability,” he concluded.
The Petroleum Industry Act, passed in 2021, remains the most comprehensive reform in Nigeria’s oil and gas sector in decades. While it was designed to attract investment and restructure governance, its implementation has continued to generate debates among stakeholders.
