The Petroleum Industry Act 2021 has attracted approximately $16 billion in investments into Nigeria’s petroleum sector, according to the Deputy Speaker of the House of Representatives, Benjamin Kalu.
Speaking in Abuja at a forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the General Counsel and Legal Advisers Forum, Kalu described the PIA as a transformative legal framework delivering tangible returns across the oil and gas value chain.
However, the House raised alarm over the severe impact of crude oil theft on the economy, estimating a daily revenue loss of $79.4 million—equivalent to N121.56 billion at the prevailing exchange rate of N1,531 to the dollar.
Lawmakers warned that the rampant theft threatens Nigeria’s fiscal sustainability and energy security, despite progress made through the PIA.
Kalu, represented by Imo lawmaker Ikenga Ugochinyere, emphasized that the PIA is restoring investor confidence and fueling economic recovery in the petroleum sector.
“Just two years after the PIA was passed, Nigeria has attracted $16bn in investment commitments — a 28,991 per cent leap from the pre-PIA baseline of just $55m in 2020. Oil production has also rebounded, reaching 1.69m barrels per day by the end of 2024 — the highest in nearly four years,” he stated.
The event, themed “Advancing a Collaborative Compliance Culture in Nigeria’s Midstream and Downstream Petroleum Sectors,” brought together legal professionals, regulators, and industry stakeholders to evaluate the evolving landscape under the PIA.
The Deputy Speaker further noted that Nigeria emerged as Africa’s leading destination for oil and gas investment in 2024, capturing three out of the four Final Investment Decisions (FIDs) secured by global energy companies.
However, he underscored the urgent need to address persistent challenges—particularly crude oil theft—which he said drains the country of an estimated $79.4 million daily. Kalu, who represents Bende Federal Constituency in Abia State, also advocated for stronger legislative oversight and closer collaboration with regulatory agencies to effectively tackle the menace.
He said, “To fully harness the gains of the PIA, we must reinforce our resolve to combat oil theft through smart legislation and robust regulatory support. Our goal must be sustainable development, not just for the industry but for the host communities and the entire Nigerian economy.”
In his remarks, NMDPRA Chief Executive Farouk Ahmed, represented by Executive Director Ogbugo Ukoha, highlighted the vital role legal practitioners play in driving regulatory compliance and operational efficiency within the midstream and downstream segments of the petroleum industry.
Ukoha disclosed that the agency is actively streamlining its regulatory framework in response to industry feedback. “We are harmonising existing rules to eliminate duplications and improve ease of doing business. The goal is to build a robust, investment-friendly environment while maintaining strict compliance,” Ukoha said.
