Regulators and industry experts have praised the Petroleum Industry Act (PIA) for driving notable improvements in governance, investment climate, and operational efficiency within Nigeria’s oil and gas sector.
Speaking at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) themed, “Four Years of the Petroleum Industry Act (PIA): Achievements, Gaps, and the Way Ahead,” they highlighted the Act’s role in strengthening regulatory oversight, enhancing transparency in licensing, and creating a more predictable framework for local and international investors, which has contributed to increased production.
However, the experts emphasised the need for clearer and more streamlined processes to fully realise the PIA’s potential, pointing to licensing procedures, fiscal obligations, and compliance mechanisms as areas requiring greater clarity to prevent delays and disputes.
Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said there has been a significant rise in crude oil supply to domestic refineries from 20,000 barrels per day (bpd) in 2023 to 40,000 bpd in 2025, as well as improved output from local refineries, with Premium Motor Spirit (PMS) supply rising from 1.3 billion litres in 2024 to 3.8 billion litres in 2025.
Represented by the Authority’s Director of Legal, Joseph Tolorunse, he noted that the PIA’s implementation over the past four years had strengthened compliance, improved service delivery, and enhanced industry collaboration, adding that the Authority had gazetted 18 regulations, developed operational guidelines, and expanded automation to improve efficiency.
Ahmed further disclosed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) had invested more than N287 billion in gas infrastructure across 62 projects as of October 2025, catalysing an additional $500 million through agreements with Afreximbank.
He, however, acknowledged challenges in the PIA’s implementation, particularly perceived regulatory overlaps, which he attributed to “human interpretation” of statutory provisions.
The ACE also noted that the gradual commencement of operations at the Dangote refinery and modular plants would further stabilise the sector.
Head of Regulations and Statutory Compliance at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Kingston Chikwendu, said the PIA had improved rulemaking, accelerated approvals, and stimulated new investments, including recent final investment decisions by international oil companies.
He noted that licensing rounds had concluded “in record time” and that compliance with host community trust fund requirements was above 95 per cent.
Dismissing calls for a new commission to manage decommissioning funds, Chikwendu insisted that such responsibilities already lie with licensees under existing law, as he urged the media to play a stronger watchdog role over trust fund management.
Also speaking, the Major Energies Marketers Association of Nigeria (MEMAN) called on the government to address administrative delays that continue to increase costs and slow investments, stressing that, beyond policy, effective implementation remains critical.
MEMAN representative Muhammad Kassim said the PIA had introduced clearer governance structures, legal and institutional architecture that could support stronger governance, attract responsible investment, protect public interests, and promote a competitive market that benefits consumers.
Kassim warned that procedural delays continue to raise operational costs and discourage investment, urging streamlined licensing workflows, stronger interagency coordination, and improved engagement with host communities to ensure transparency and sustainability.
According to him, deregulation of the downstream market in 2023 posed challenges for both supply stability and consumer protection, but he stressed that pricing templates published by the Authority ensured cost-reflective and transparent pricing.
“Progress on social provisions, including the establishment of Host Community Development Trusts, has been uneven, and capacity and coordination gaps continue to slow effective delivery. We must also ensure the new framework is applied in ways that prevent market concentration, guarantee open access to critical infrastructure, and protect consumers from anti-competitive behaviour.
“Coordination across institutions and levels of government must be tightened. Where roles overlap or communication is weak, projects slow down and opportunities are lost. Second, capacity building is urgent; new mandates require regulatory staff, technical teams, and industry partners with up-to-date skills in licensing, monitoring, technical assessment, and market regulation.
“Procedural hurdles and administrative delays still raise costs and slow investment and service delivery. Effective stakeholder engagement with host communities, civil society, and consumers is not optional; it is central to legitimacy and sustainable outcomes.”
On his part, Energy analyst, Henry Adigun, highlighted the need for greater investment in midstream infrastructure, including pipelines and storage. He said insecurity and financial risks have deterred investors, resulting in higher dependence on barging rather than pipelines for transport.
“There seems to be no serious investments in our pipelines. We still carry products, crude by processes that shouldn’t be. This wasn’t like this some years ago; the IOCs that came invested in pipelines. Today, we don’t have pipelines.
“If I’m an investor and I’m coming to Nigeria and I realise out of 11 companies, six are using barges, I won’t put my investment in pipelines because nobody’s using it.
“The salvation we have is in gas. When the AKK is completed and the OBK is completed, because of the structure being built around it and the license regime of the NMDPRA, there will be a lot of connectivity.
“Once security is enhanced in the Niger Delta and other areas, then there’ll be more investment in pipelines. But we’ve gone a long way further than we were five years ago. There’s more clarity now.”
Adigun argued against amending the PIA less than five years into implementation, noting that reforms should be fully executed before any review, while criticising proposals to create new agencies for decommissioning oversight as unnecessary and costly.
He said, “I do not think there’s a need to amend the PIA as of now. Amending a law less than five years into implementation is not a good sign for investors. Before you amend a law, implement that law to the letter. What we have right now is a partial implementation of the PIA. The implementation of the PIA has been driven by political necessities other than the letter of the law.”
Adigun expressed optimism that improved regulatory clarity and investment-driven reforms would expand midstream and downstream capacity, create jobs, and strengthen domestic energy security.
He further urged policymakers to simplify regulatory processes, reduce the cost of compliance, and support midstream and downstream growth to boost job creation, petrochemical development, and GDP contribution.
