The Deputy Speaker of the House of Representatives, Benjamin Okezie Kalu, has stated that the passage of Petroleum Industry Act (PIA) is revolutionising the oil and gas sector.
Speaking during the General Counsel and Legal Advisers’ Forum for Midstream and Downstream Petroleum Companies organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Kalu said the Act has increased confidence for investors in the sector, thereby allowing the federal government to generate over N50trn alone in 2024.
He added that in just two years post-enactment, the impact of the PIA saw an astonishing $16bn in investment commitments, an increase of 28,991% increase from 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. Before the PIA, we operated under a fragmented regulatory structure, a table of overlapping mandates that hindered efficiency and accountability,” he said.
He added that the PIA reversed such incidents by creating two distinct, powerful regulatory bodies: the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NMDPRA.
He said the allocation of 30% of production sharing contracts to community development, ensures that the very communities bearing the brunt of petroleum operations directly benefit from the wealth generated, fostering peace and stability.
“As we all know, according to available data, Nigeria earned N50.88trin revenue from crude oil & gas exports in 2024 and is projected to earn more at the end of 2025. And critically, our Oil Production in December 2024 reached 1.69 million barrels per day.
On his part, the CEO of NMDPRA, Engr. Farouk A. Ahmed, said the forum was informed by the feedback received from stakeholders on the need to strengthen regulatory compliance through simplified and clearer regulations for the Midstream and Downstream operations.
This, he stated, led to implementing an inclusive stakeholders’ process of streamlining the gazetted and published regulations to mitigate the complexities of navigating and implementing numerous Regulations.
