Tinubu moves to amend PIA: Finance ministry to take control of NNPCL, NUPRC named new concessionaire

Nigeria’s petroleum industry is being readied for another round of sweeping reforms, as President Bola Tinubu has reportedly approved proposed amendments to the Petroleum Industry Act (PIA) 2021 that would transfer strategic control of the sector from the Ministry of Petroleum and the Nigerian National Petroleum Company Limited (NNPCL) to the Ministry of Finance Incorporated (MOFI) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to a report by Oil+Gas Report, the Attorney General of the Federation has notified relevant agencies of the president’s approval, with a directive to convene a meeting for “early implementation” of the changes once the National Assembly passes the amendment.

The draft legislation, titled The Petroleum Industry Act (Amendment) Act 2025, originated from the Minister of Finance and is aimed at curbing what government describes as “escalating fiscal leakage and revenue loss confronting the Federation.”

The most far-reaching change is the overhaul of Section 8 of the current Act, which reshapes the regulatory mandate of NUPRC. Under the amendment, NUPRC will:

Act as government representative in all model contracts attached to petroleum licences and leases.

Replace NNPCL as concessionaire in all Production Sharing Contracts, Profit Sharing Contracts, and Risk Service Contracts.

Evaluate and approve work programmes and contractor costs to determine cost-recoverable expenditure.

This effectively strips NNPCL of its long-standing role as concessionaire, handing that responsibility to the regulator.

The amendment also proposes to restructure NNPCL’s ownership. At present, shares are jointly held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated. The amendment seeks to vest ownership solely in MOFI “as the bare agent of the Federation.”

This would give the finance ministry exclusive control over NNPCL’s strategic direction, removing the petroleum ministry from the ownership structure.

Another adjustment involves integrated upstream and midstream operations. Currently, NUPRC regulates such projects where there is joint use of facilities. The amendment proposes instead a joint project team comprising both NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to oversee such operations.

Analysts warn that the proposed changes could erode NNPCL’s commercial independence and reverse the intent of the original PIA, which sought to professionalise the national oil company and insulate it from political interference.