The Petroleum Industry Act has generated approximately $16 billion in fresh investments for Nigeria’s oil sector since its enactment in 2021, representing a remarkable 28,991 percent increase from pre-PIA baseline levels.
Deputy Speaker Benjamin Kalu revealed these impressive figures during a Nigerian Midstream and Downstream Petroleum Regulatory Authority event, emphasizing the transformative impact of the comprehensive petroleum sector reforms on investor confidence and economic recovery.
The investment surge contrasts sharply with the $55 million attracted in 2020 before the PIA’s passage, demonstrating the legislation’s effectiveness in creating an enabling environment for energy sector development. Nigeria emerged as Africa’s leading oil and gas investment destination in 2024, securing three out of four Final Investment Decisions made by global energy companies.
“These are not just figures — they represent jobs, infrastructure, and a revitalised oil and gas industry,” Kalu stated. “The PIA is a legislative milestone that has repositioned Nigeria as a preferred destination for energy investment.”
Oil production has responded positively to the improved investment climate, reaching 1.69 million barrels per day by end-2024, marking the highest production levels in nearly four years. This recovery addresses long-standing concerns about Nigeria’s declining output amid global energy market volatility.
However, persistent challenges remain, particularly the economically devastating impact of oil theft, which continues to cost Nigeria an estimated $79.4 million daily. At current exchange rates, this represents approximately N121.56 billion in daily losses, severely undermining the sector’s growth potential.
NMDPRA Chief Executive Farouk Ahmed emphasized the critical role of legal practitioners in ensuring regulatory compliance within the reformed sector structure. The agency is currently streamlining regulations to eliminate duplications and improve business facilitation.
“We are harmonising existing rules based on industry feedback to build a robust, investment-friendly environment while maintaining strict compliance standards,” said Executive Director Ogbugo Ukoha.
The PIA established comprehensive licensing frameworks covering over 17 different operational categories across midstream and downstream sectors, requiring enhanced legal expertise to navigate the complex regulatory landscape. Industry stakeholders stress that sustained implementation of PIA provisions, combined with effective measures to combat oil theft, will be crucial for maintaining investor confidence and maximizing the legislation’s economic benefits.
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