Operators in Nigeria’s oil and gas sector, on Monday, said there was still uncertainty with respect to investments in the industry despite the enactment of the Petroleum Industry Bill about two years ago.
Nigeria’s low oil production and the plunge in its revenue were attributed to this investor uncertainty by the industry players, as they urged the National Assembly to consider a review of the PIA 2021.
The PIA was passed into law in August 2021 by former President Muhammadu Buhari, after it dragged as a bill at the National Assembly for about two decades.
Speaking at the Oil and Gas Industry Policy Roundtable organised by the Independent Petroleum Producers Group and Oil Producers Trade Section for members of the National Assembly, the Chairman, IPPG, Abdulrazaq Isa, said the challenges in the sector were stifling its growth despite the PIA.
He said, “As you are aware, it has been two years since the enactment of the Petroleum Industry Act and this landmark legislation continues to transform the Nigerian oil and gas industry and has laid a solid foundation for its growth and development.
“However, investor uncertainty, a core element of the ongoing reforms, persists and this is further exacerbated by the global energy transition drive and the insecurity in the Niger Delta with the resultant effect being a significant drop in the nation’s production output.
“Consequently, Nigeria suffers untold collapse in revenue accruable from its vast hydrocarbon resources. It has therefore become imperative for us as an industry to ensure the immediate ramping up of oil and gas production to shore up the nation’s revenue base and generate the much-needed foreign exchange for the attainment of macroeconomic stability.”
Making this happen in the short to medium term, according to Isa, would require focusing on some priority areas.
The first, he said, included the “amendment of critical aspects of the PIA primarily aimed at establishing a strong regulatory and governance framework to guide the effective implementation of the PIA and ensure that the intended benefits of the industry-wide reforms are realised.
“Enhancing the competitiveness of the industry in order to attract the level of funding required to fully optimise our vast hydrocarbon resources for today and future generations,” among others.”
