Former President Muhammadu Buhari’s death has reignited debates over his complex oil sector legacy, which combined landmark reforms with persistent challenges that cost Nigeria billions in lost revenue.
Buhari’s administration achieved the historic passage of the Petroleum Industry Act (PIA) in 2021 after two decades of legislative stagnation, establishing comprehensive regulatory frameworks that have since attracted $16 billion in fresh investments. The corporatisation of the Nigerian National Petroleum Corporation into NNPC Limited marked another transformative milestone, positioning the entity for commercial operations free from direct political interference.
However, these achievements were overshadowed by massive economic losses from escalating oil theft, which reached $79.4 million daily during his tenure. According to industry data, Nigeria lost over $4 billion to oil theft in 2021 alone, while pipeline vandalism disrupted production across major oil-producing regions.
The fuel subsidy debacle proved particularly costly to the economy. Despite promising to eliminate subsidies upon assuming office in 2015, Buhari’s administration spent over N3 trillion on fuel subsidies between 2020 and 2022, creating unsustainable fiscal pressures that contributed to mounting debt levels.
“The PIA represents a fundamental shift in how Nigeria approaches oil sector governance,” said Dr. Kemi Adebayo, an energy policy analyst at the Lagos Business School. “While the regulatory framework has improved investor confidence, the implementation challenges highlight the complexity of transforming a sector plagued by decades of mismanagement.”
Nigeria’s four major refineries remained non-functional throughout Buhari’s eight-year tenure, forcing continued reliance on costly fuel imports despite spending over N10 billion on maintenance. The Ajaokuta-Kaduna-Kano gas pipeline project, launched under his Decade of Gas initiative, achieved 72 percent completion but faced significant delays due to funding constraints and security challenges.
The mixed legacy underscores the ongoing challenges facing Nigeria’s oil-dependent economy, with current production levels still below optimal capacity despite recent improvements.
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