PIA Attracts Over $16b, Transforming Oil Sector – Deputy Speaker

Deputy Speaker of the House of Representatives, Benjamin Kalu, has praised the Petroleum Industry Act (PIA) 2021 for attracting over $16 billion in investment and significantly transforming the country’s oil sector.

Kalu made the remark during the opening of the 2025 General Counsel and Legal Advisers Forum organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

“The most compelling testament to the PIA’s success is its remarkable ability to attract substantial foreign and domestic investment,” the Deputy Speaker said.

Represented by the Chairman of the House Committee on Petroleum (Downstream), Ikenga Ugochinyere, Kalu noted that investment commitments have soared by 28,991% since the PIA’s enactment in 2021, rising from just $55 million in 2020 to over $16 billion.

“These are not just numbers; they represent jobs, infrastructure, and a renewed sense of purpose for our petroleum sector,” the statement read.

Kalu credited the law with improved oil production, enhanced regulatory compliance, and stronger revenue generation. He noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) generated ₦4.34 trillion in 2023, a 14.89% increase from the previous year.

He said that the Act streamlined oversight by replacing the former fragmented regulatory structure with two distinct bodies: the NUPRC and the NMDPRA.

While acknowledging these gains, Kalu warned that there were still challenges and called for continued legislative attention, particularly in addressing oil theft, which costs Nigeria around $79.4 million daily.

The Deputy Speaker also hailed the law’s provision for host communities, which allocates 30% of production sharing contracts to local development, and welcomed Executive Orders 40, 41, and 42 signed by President Bola Tinubu in 2024, aimed at further improving investor confidence.

In his remarks, NMDPRA Chief Executive Farouk Ahmed, represented by Executive Director Ogbugo Ukoha, emphasized the need for a unified compliance culture.

NMDPRA Secretary and Legal Adviser, Dr. Joseph Tolorunse urged legal professionals to fully understand the licensing structure under the PIA and adopt more proactive, compliance-driven legal strategies.

Oduyemi Odumade, Edited By Grace Namiji