Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu has described the Petroleum Industry Act (PIA) 2021 as a game-changer for Nigeria’s economy.
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 organised 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 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), Ikenga Ugochinyere at the event themed “Advancing a Collaborative Compliance Culture in Nigeria’s Midstream and Downstream Petroleum Sectors” said 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.
“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.”
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”.
In 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”.
