Joseph Bakare
Nigeria has registered a significant investment inflow of about 28,991 per cent following review of oil and gas legislation.
According to the Deputy Speaker, House of Representatives, Rt Hon. Benjamin Kalu, the enactment of the Petroleum Industry Act (PIA) 2021 has led to $16 billion investment commitments in the past two years.
He added that “just two years post-enactment, the impact of the PIA is undeniable. We have witnessed an astonishing $16 billion in investment commitments, a staggering 28,991% increase from our pre-PIA baseline of a mere $0.055 billion in 2020. These are not just numbers; they represent jobs, infrastructure, and a renewed sense of purpose for our nation’s most vital economic engine”.
Kalu who spoke in Abuja at the opening of a two-day general Counsel and Legal Advisers Forum organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja noted that before the enactment of the PIA investors faced uncertainty due to vague regulations and overlapping jurisdictions.
The forum had the theme: Advancing a collaborative compliance culture in Nigeria’s midstream and downstream petroleum sectors.
Kalu represented by the Chairman, House Committee on Petroleum Downstream, Hon. Ikenga Ugochinyere, pointed out that PIA’s clear delineation of regulatory responsibilities and streamlined approval processes has brought about the much-needed predictability that drives investment.
He stated: “This inflow of capital is a vote of confidence in Nigeria’s petroleum sector and a validation of the National Assembly’s diligent work on the PIA”.
Earlier, the Authority Chief Executive, NMDPRA, Engr. Farouk Ahmed tasked industry players on the need for an entrenched culture of compliance to rules and regulations governing the mid and downstream sector of the Nigerian oil and gas industry.
He observed that compliance should not be reactive or be viewed as a business risk but rather as an integral part of business philosophy.
Ahmed who was represented by the Executive Director, Distribution, System Storage and Retailing Infrastructure, Ogbogu Ukoha noted that the Petroleum Industry Act 2021 has fundamentally restructured Nigeria’s petroleum industry by delineating regulatory responsibilities of our Industry into the Upstream and the Midstream and Downstream Petroleum operations.
“The Act”, he pointed out “prescribes that all operations in the midstream and downstream sector can only be conducted under appropriate licenses, permits and authorizations granted by the NMDPRA and the authority is fully guided by the provisions of the law in providing regulatory oversight of the Industry”.
He added: “When we issue regulatory instruments, we require effective compliance. It is compliance with extant provisions of the law that allows continuity of operations and the grant or renewal of licences. We enforce compliance to ensure that operations are conducted safely, the environment and consumers are protected, and fair play is observed in the industry.
“It is evident that effective compliance is a result of effective collaboration. Collaboration allows for the development of enforceable regulations, best industry practices, and synergy between the multiple stakeholders in the industry including other regulatory agencies and international institutions”.