President Muhammadu Buhari is expected to present the oil-reform Bill to the Senate as early as next week, after signing it several weeks ago.
The Bill has been deliberated upon for the past two decades; however, the laws governing the oil and gas sector have not been updated since independence.
This is due to the contentious nature of any change to oil taxes, terms, and revenue-sharing within Nigeria.
Reuters revealed that reforms and regulatory certainty became more pressing this year as low oil prices and a shift towards renewable energy made competition for investment from oil majors tougher.
The unification of warring factions between the two main parties in the National Assembly has also given the reforms the best chance of passage in years.
Buhari officially signed the Bill late last week; and his team has already been building support for it in the National Assembly.
Sources, who asked not to be named because of the sensitivity of the issue, said the assembly has already chosen teams of members who will work most closely on individual portions of the bill.
Both the Senate and the House of Representatives must approve it before Buhari can sign it into law.
Two presidential spokesmen declined to comment and the Senate had no immediate comment.
The Ministry of Petroleum Resources sent the draft, the product of months of consultation between Nigerian officials, oil and gas companies, and other industry stakeholders, to Buhari last month.