The Deputy Speaker of the House of Representatives, Benjamin Kalu, has said that Nigeria’s petroleum sector has attracted about $16 billion in investment since the signing of the Petroleum Industry Act (PIA) 2021, but expressed concern over the massive losses the country is still recording due to crude oil theft.
Speaking on Monday, during a forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the General Counsel and Legal Advisers Forum in Abuja, Kalu said the PIA had delivered transformative gains, helping to reposition Nigeria as a preferred destination for oil and gas investment.
The Deputy Speaker, who was represented by Hon. Ikenga Imo Ugochinyere of the Ideato Federal Constituency in Imo State, noted that the PIA has led to significant investor confidence, a surge in oil production, and increased capital inflow into the sector. He said, “Just two years after the PIA was passed, Nigeria has attracted $16 billion in investment commitments — a 28,991 per cent increase from the $55 million recorded in 2020 before the Act.”
Kalu added that oil production had improved remarkably, with daily output reaching 1.69 million barrels per day (bpd) by the end of 2024, marking the highest output level in nearly four years.
However, amid the positive developments, the House expressed deep worry over the daily loss of about $79.4 million (over N121 billion) due to crude oil theft. At the current exchange rate of N1,531 per dollar, this loss translates to a crippling economic sabotage that undermines the country’s revenue base and energy security.
Kalu, who represents Bende Federal Constituency in Abia State, stressed that urgent attention must be given to fighting oil theft, saying, “To fully harness the gains of the PIA, we must reinforce our resolve to combat oil theft through smart legislation and robust regulatory support. This is a battle we must win.”
He also called for increased legislative oversight, collaboration with regulators, and sustainable development strategies that prioritise host communities and long-term benefits for the Nigerian economy.
The Abuja event, themed “Advancing a Collaborative Compliance Culture in Nigeria’s Midstream and Downstream Petroleum Sectors”, brought together legal experts, regulators, oil and gas professionals, and key stakeholders to assess how legal frameworks can improve petroleum operations.
In his remarks, the Chief Executive of NMDPRA, Farouk Ahmed, who was represented by Executive Director Ogbugo Ukoha, said that the Authority was working hard to streamline its regulations based on industry feedback. “We are harmonising existing rules to eliminate duplications and improve the ease of doing business,” Ukoha said.
He explained that under the PIA, all operations in Nigeria’s midstream and downstream petroleum sectors must now be licensed, highlighting the Act’s role in restructuring the regulatory landscape to attract private investment and improve governance.
Delivering a paper titled “Aligning the Legal Advisory Role with Regulatory Mandates and Operational Realities,” the Secretary and Legal Adviser to the NMDPRA, Joseph Tolorunse, advised corporate legal teams to deepen their understanding of the PIA and its licensing requirements.
“There are more than 17 types of licences under the PIA that govern various operational aspects of the industry. Legal counsels, both internal and external, must understand these thoroughly,” Tolorunse said.
He also called for a compliance-first legal culture, with more attention to alternative dispute resolution, collaboration with regulators, and forward-looking legal strategies that support operational efficiency.
Tolorunse stressed that legal departments should do more than just interpret laws — they should serve as active partners to business units by helping align corporate activities with regulatory expectations and market changes.
Nigeria’s oil sector has remained a major source of revenue, but for years it has been weakened by crude theft, pipeline vandalism, weak enforcement, and poor community relations. Though the PIA was signed into law by former President Muhammadu Buhari in August 2021 to provide a legal framework for oil sector reform, much of the implementation still faces challenges.
Kalu concluded that the National Assembly will continue to work with relevant authorities to address implementation gaps and tackle oil theft head-on. He urged stakeholders in the petroleum industry to key into the collaborative effort to make Nigeria’s oil and gas sector efficient, transparent, and economically viable for all.
