By Adebayo Obajemu
Energy sector lawyers have made a case for amendments to the Petroleum Industry Act (PIA) 2021 to eliminate overlapping regulatory responsibilities between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), warning that legal ambiguities could undermine investor confidence in Nigeria’s oil and gas industry.Energy industry news
The legal practitioners made the call while assessing the commitments of the new Authority Chief Executive of the NMDPRA, Rabiu Abdullahi Umar, during the 2026 NMDPRA General Counsel and Legal Advisers Forum.
The renewed calls come barely two months after President Bola Tinubu approved the removal of Umar’s predecessor, Saidu Mohammed, as part of efforts to strengthen regulatory oversight and improve performance in the oil and gas sector under the Petroleum Industry Act.Oil and gas
Speaking at the forum, Umar reaffirmed the Authority’s commitment to creating a transparent and predictable regulatory environment that would encourage investment and support Nigeria’s economic growth.Cooking gas prices
“Compliance remains a shared value between the Authority and the legal leadership of licensed operators. Our broader objective is to create an industry characterised by certainty, predictability, transparency and confidence, thereby deepening a sector capable of supporting Nigeria’s broader economic aspirations.
“We will continue to strengthen regulatory clarity, encourage responsible investment, and foster the collaborative relationships that are essential to achieving the objectives of the PIA,” he said.Oil & Gas
The Authority Secretary and Legal Adviser of the NMDPRA, Joseph Tolorunse, also urged regulators to evolve beyond their traditional enforcement role by embracing artificial intelligence, data analytics and sustained stakeholder engagement to improve regulatory efficiency.
He further advised operators to prioritise timely compliance, ethical business practices and accurate regulatory reporting.
Senior Advocate of Nigeria, Abimbola Ademola, said the Petroleum Industry Act requires extensive amendments because several of its provisions are impractical and inconsistent with current realities and international best practices.
According to him, one of the major weaknesses of the legislation is the overlap in responsibilities assigned to the NMDPRA and the NUPRC.
“The Petroleum Industry Act needs serious amendments because many of its provisions are impracticable and do not align with current realities and international best practices.
“There is an overlap in terms of the functions that should be performed by the NMDPRA and the NUPRC.”
He urged lawmakers to provide clearer statutory definitions of the responsibilities of both regulators to eliminate conflicts and improve regulatory efficiency.
Another energy lawyer, Akin Oladimeji, also advocated stronger collaboration between the NMDPRA and the NUPRC, particularly in revenue administration and regulatory implementation.Energy industry news
He argued that one of the biggest concerns for operators is the issuance of regulations without sufficient consultation with industry stakeholders.
“The outcome of these regulations sometimes does not reflect what the stakeholders proposed during stakeholder engagement, and it ultimately affects investors’ confidence in the Nigerian oil and gas sector.”
Oladimeji warned that continued legal uncertainty surrounding regulations and executive directives could discourage investment and potentially force international oil companies to scale back their operations in Nigeria.Oil & Gas