The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has credited the Petroleum Industry Act (PIA) with significantly improving governance and promoting indigenous participation in the country’s oil and gas sector.
Speaking at the 2025 International Conference on Hydrocarbon Science and Technology in Abuja, NUPRC Chief Executive Gbenga Komolafe, represented by the Commission’s Executive Commissioner for Economic Regulation and Strategic Planning, Kelechi Ofoegbu, said the implementation of the PIA has transformed Nigeria’s upstream regulatory environment. He explained that the Act has provided a transparent, stable, and predictable framework that has restored investor confidence while ensuring fair participation by indigenous operators.
According to Komolafe, indigenous oil producers now account for more than 30 percent of Nigeria’s total crude output—a milestone he attributed to reforms introduced under the PIA. These reforms include transparent licensing rounds, equitable fiscal regimes, and consistent regulatory oversight that encourages local ownership and efficient project delivery.
“The PIA has not only provided a robust governance structure but has also enhanced Nigeria’s attractiveness as an investment destination,” Komolafe said. He added that the law has strengthened institutional accountability by clearly delineating roles among regulatory bodies, thereby reducing overlap and improving compliance in the upstream sector.
Komolafe also emphasised that the PIA has been instrumental in accelerating Nigeria’s gas utilisation and environmental sustainability goals. He noted that the Commission is intensifying efforts to eliminate routine gas flaring, with the country targeting complete flare-out by 2030 in line with its energy transition and decarbonisation commitments.
Felix Ogbe, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), also addressed the conference, highlighting the impact of local content policies in the sector. He revealed that Nigeria’s drive to increase domestic capacity and participation has yielded remarkable results, with in-country value retention rising from less than 5 percent in 2010 to over 54 percent in 2024.
Ogbe added that the local content initiative has created more than 50,000 direct jobs, bolstered the development of indigenous service companies, and fostered technology transfer across the oil and gas value chain.
Industry experts at the conference agreed that the synergy between the PIA and local content enforcement has positioned Nigeria for a more sustainable and inclusive energy future. They, however, called for continuous policy consistency, investment in human capital, and the removal of bureaucratic bottlenecks to ensure the long-term success of the reforms.
The 2025 International Conference on Hydrocarbon Science and Technology, organised by the Petroleum Training Institute (PTI), brought together key stakeholders from government, industry, and academia to deliberate on innovative strategies for energy security, local capacity development, and environmental sustainability in Nigeria’s hydrocarbon sector.
