The Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Kalu, has announced that Nigeria has secured $16 billion in investment commitments in its oil sector since the enactment of the Petroleum Industry Act (PIA) in 2021. Speaking at the opening of a two-day forum for General Counsel and Legal Advisers organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, Kalu said the law has transformed the regulatory landscape and restored investor confidence.
Represented by the Chairman of the House Committee on Petroleum Downstream, Hon. Ikenga Ugochinyere, Kalu explained that prior to the PIA, investors were discouraged by ambiguous rules and overlapping regulatory mandates. The new law, he said, has introduced clarity and streamlined processes that encourage capital inflow.
He highlighted the dramatic shift, revealing that investment commitments surged from a mere $55 million in 2020 to $16 billion by 2023, representing a 28,991% increase. According to him, this development is not just economic progress but a testament to the positive impact of the National Assembly’s efforts in reforming the oil and gas sector.
The Authority Chief Executive of NMDPRA, Engr. Farouk Ahmed, stressed the importance of building a strong culture of compliance in the midstream and downstream segments of the industry. Represented by Executive Director Ogbogu Ukoha, Ahmed said compliance should be seen as a core part of business strategy, not as a burden or risk.
He added that the PIA has effectively restructured the industry by clearly separating upstream from midstream and downstream operations. According to him, all such operations now require proper licensing, permits, and approvals issued by the NMDPRA under strict legal guidelines.
Ahmed emphasized that full compliance with the law ensures safe operations, protects the environment and consumers, and guarantees fair competition. He also pointed out that collaboration among stakeholders, including regulators and international partners, is essential to achieving effective oversight and sustainable growth in the sector.
