Lawyers Seek Review of PIA to Resolve Conflict in Oil, Gas Industry

Kindly share this story!

Energy law experts have called for an amendment to the Petroleum Industry Act (PIA) 2021 to eliminate what they described as overlapping regulatory responsibilities between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The lawyers warned that the existing legal ambiguities could weaken investor confidence and hamper the effective implementation of reforms in Nigeria's oil and gas sector.

The calls were made during the 2026 NMDPRA General Counsel and Legal Advisers Forum, where participants assessed the priorities of the Authority's new Chief Executive, Rabiu Abdullahi Umar.

The renewed push for amendments comes barely two months after President Bola Tinubu approved the removal of Umar's predecessor, Farouk Ahmed, as part of efforts to strengthen regulatory oversight and improve performance in the petroleum sector under the Petroleum Industry Act.

Speaking at the forum, Umar reiterated the Authority's commitment to providing a transparent, predictable and investor-friendly regulatory environment capable of supporting growth in the oil and gas industry.

According to him, regulatory compliance is a shared responsibility between the NMDPRA and operators, adding that the Authority would continue to promote clarity, transparency and confidence in the sector.

"Our broader objective is to create an industry characterised by certainty, predictability, transparency and confidence, thereby deepening a sector capable of supporting Nigeria's broader economic aspirations.

"We will continue to strengthen regulatory clarity, encourage responsible investment and foster the collaborative relationships that are essential to achieving the objectives of the Petroleum Industry Act," he said.

Also speaking, the Authority Secretary and Legal Adviser of the NMDPRA, Joseph Tolorunse, urged regulators to modernise their operations by embracing emerging technologies such as artificial intelligence and data analytics while strengthening stakeholder engagement to improve regulatory effectiveness.

He also advised operators to maintain ethical business practices, comply promptly with regulatory requirements and ensure accurate reporting.

Senior Advocate of Nigeria (SAN), Abimbola Ademola, argued that the Petroleum Industry Act requires significant amendments because several of its provisions are no longer practical and fall short of international best practices.

He identified the overlap in the statutory responsibilities of the NMDPRA and the NUPRC as one of the major shortcomings of the law.

"The Petroleum Industry Act needs serious amendments because many of its provisions are impracticable and do not align with current realities and international best practices.

"There is an overlap in the functions assigned to the NMDPRA and the NUPRC," he said.

Ademola called on the National Assembly to clearly define the responsibilities of both regulatory agencies in order to eliminate jurisdictional conflicts and improve efficiency within the industry.

Another energy law expert, Akin Oladimeji, also advocated closer collaboration between the two regulators, particularly in the areas of revenue administration and policy implementation.

He expressed concern that some regulations are issued without sufficient consultation with industry stakeholders, resulting in policies that do not reflect the recommendations made during stakeholder engagements.

According to him, such practices create uncertainty for investors and undermine confidence in Nigeria's petroleum industry.

Oladimeji warned that persistent regulatory uncertainty and conflicting directives could discourage fresh investments and compel some international oil companies to reduce their operations in the country.

Leave a Reply