Energy lawyers seek PIA reform to clarify regulatory roles, boost investment

By Editor

Legal practitioners in Nigeria’s oil and gas industry have called for amendments to the Petroleum Industry Act (PIA) 2021 to eliminate regulatory overlaps, clarify the responsibilities of industry regulators and strengthen investor confidence.

The lawyers made the call while assessing the priorities of the new Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Abdullahi Umar, during the NMDPRA General Counsel and Legal Advisers Forum 2026.

The appeal comes about two months after President Bola Ahmed Tinubu approved the appointment of Umar to replace Saidu Mohammed as head of the Authority, a move the Presidency said was intended to strengthen regulatory oversight and improve performance in the oil and gas sector in line with the Petroleum Industry Act.

Addressing participants at the forum, Umar said regulatory compliance remains a shared responsibility between the Authority and licensed operators, stressing that the ultimate objective is to build a petroleum industry characterised by certainty, transparency, predictability and investor confidence.

He noted that the Petroleum Industry Act fundamentally reshaped Nigeria’s oil and gas regulatory framework by creating new institutions and market structures.

“We will continue to strengthen regulatory clarity, encourage responsible investment and foster the collaborative relationships that are essential to achieving the objectives of the PIA,” Umar said.

Also speaking, the Authority Secretary and Legal Adviser of the NMDPRA, Joseph Tolorunse, urged regulators to evolve beyond enforcement by embracing artificial intelligence, data analytics and sustained stakeholder engagement to facilitate investment while maintaining regulatory compliance.

He also called on industry operators to uphold ethical business practices, ensure timely regulatory compliance and provide accurate reporting.

Speaking on the challenges associated with the PIA, energy lawyer Abimbola Ademola said the legislation requires substantial amendments because several provisions have become impractical and no longer reflect current industry realities or international best practices.

According to him, one of the most significant issues is the overlap in statutory responsibilities between the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“There is an overlap in terms of the functions that should be performed by the NMDPRA and the NUPRC,” he said, adding that the law should clearly define the respective responsibilities of both regulators to eliminate uncertainty.

Another industry lawyer, Akin Oladimeji, also called for closer collaboration between the two regulatory agencies, particularly in revenue administration and implementation of the Petroleum Industry Act.

He argued that regulatory overlap creates inefficiencies and contributes to uncertainty within the industry.

Oladimeji further expressed concern over the development of regulations without sufficient stakeholder consultation, noting that some final regulations differ significantly from proposals submitted during engagement with industry participants.

“The outcome of these regulations sometimes does not reflect what stakeholders proposed during consultations, and this ultimately affects investor confidence in Nigeria’s oil and gas sector,” he said.

He warned that prolonged legal uncertainty could discourage investment and prompt international oil companies to reconsider future investments in Nigeria.

According to him, providing greater regulatory certainty through clearer legislation and more inclusive stakeholder engagement would strengthen the country’s attractiveness as an energy investment destination.

The lawyers’ recommendations come against the backdrop of the Federal Government’s efforts to improve the operating environment in the petroleum industry.

In 2025, the House of Representatives said the implementation of the Petroleum Industry Act had attracted more than $16 billion in investment commitments while contributing to higher oil production levels.

Deputy Speaker Benjamin Kalu also disclosed that Nigeria generated ₦50.88 trillion from crude oil and gas exports in 2024, underscoring the sector’s continued importance to government revenue and economic growth.