Key points
- Expert calls for faster approvals and consistent policies to attract upstream investment.
- Says regulatory certainty matters more to investors than new regulations.
- Recommends digitalising approvals and publishing service delivery timelines.
- Urges stronger action on oil theft, financing and deepwater investment incentives.
Main story
An energy law expert has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to strengthen regulatory certainty, accelerate approval processes and maintain policy consistency to improve investor confidence in Nigeria’s upstream oil and gas sector.
Dr Ayodele Oni, Partner and Chair of the Energy and Natural Resources Practice Group at Bloomfield Law Practice, said investors were looking for a stable and predictable operating environment rather than additional regulations.
He called on the commission to publish clear timelines for approvals, fully implement the fiscal provisions of the Petroleum Industry Act (PIA) and simplify licence administration to reduce uncertainty.
According to Oni, delays in approvals for asset transfers, field development plans and uncertainties surrounding Host Community Development Trust (HCDT) obligations remain major obstacles to investment despite the enactment of the PIA.
He also recommended introducing statutory timelines for approvals, delegating routine regulatory decisions and issuing clearer implementation guidelines to improve efficiency.
To enhance transparency, Oni proposed a public dashboard tracking regulatory performance, electronic processing of applications, automated approval systems, digital payment platforms and deemed approvals where regulatory deadlines are not met.
The expert further urged the Federal Government to strengthen incentives for deepwater and petroleum prospecting investments through legislation, while promoting reserves-based lending and improving the petroleum title registry to support indigenous operators.
He identified crude oil theft and insecurity as the biggest constraints to investment in onshore and shallow-water operations, calling for stronger metering systems, improved hydrocarbon accounting, effective prosecution of oil theft and community-based pipeline surveillance.
Oni also encouraged greater collaboration among international oil companies, indigenous operators and host communities, while urging Nigeria to position itself as a competitive, lower-carbon oil producer by expanding gas development and improving emissions reporting.
The issues
Persistent regulatory delays, policy uncertainty, security challenges and financing constraints continue to affect investment decisions in Nigeria’s upstream oil and gas industry, despite reforms introduced under the Petroleum Industry Act.
What’s being said
“Investors can manage delays, but they cannot manage uncertainty and lack of transparency.” — Dr Ayodele Oni
What’s next
The NUPRC is expected to continue implementing the Petroleum Industry Act while industry stakeholders push for faster approvals, greater transparency and reforms aimed at improving Nigeria’s competitiveness in attracting upstream investment.
Bottom line
Improving regulatory certainty, reducing approval delays and strengthening transparency could enhance investor confidence and support increased investment in Nigeria’s upstream oil and gas sector.
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