Deregulation Not Licence for Profiteering, Lokpobiri Warns Industry

The minister of state for Petroleum Resources, (Gas), Senator Heineken Lokpobiri, has warned industry players that the deregulation of Nigeria’s petroleum sector must not be used as a pretext for excessive pricing or shortchanging consumers.

Speaking at the 2026 NMDPRA General Counsel and Legal Advisers Forum, in Abuja on Monday, Lokpobiri said the Petroleum Industry Act of 2021 provided the legal framework for a more transparent and commercial sector, but regulators must now ensure the law delivers results for investors and consumers alike.

“Deregulation is not a licence for profiteering,” Lokpobiri said. He acknowledged that removing price controls had ended artificial scarcity and helped ensure product availability since 2023, but he stressed that the regulator has a statutory duty to prevent profiteering under the PIA.

The minister said compliance remains important, but called for a shift in focus toward regulatory certainty:

“Compliance is the foundation. Regulatory certainty is the ceiling we must now be building toward,” he said, urging authorities to be clear, consistent and predictable to attract long‑term investment.

Lokpobiri also challenged legal advisers and general counsel to play a constructive role. He described them as “architects of investor experience” and urged them not to let caution harden into obstruction.

“When the rules are not clear enough, say so, because that feedback is how we improve,” he told participants.

The minister pointed to global market volatility and geopolitical tensions as reasons investors now favour jurisdictions with dependable rules and institutions.

He said the government had already taken steps to strengthen the sector, including publishing guidelines and implementing reforms to support projects such as the Dangote Refinery.

Lokpobiri noted that while market forces should eventually correct prices following the de‑escalation of tensions between the US and Iran, the regulator must act to ensure deregulation is not exploited to the detriment of consumers.

“When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” he said.

He urged regulators to improve transparency, stakeholder engagement and service delivery, and asked industry players to maintain high governance and compliance standards. The forum, he said, should equip legal teams to interpret regulatory expectations and to guide compliance strategies that support investment and consumer protection.

The NMDPRA Forum brings together legal heads of licensed operators and the regulator to discuss regulatory practice and sector development.

Lokpobiri said insights from the meeting would help shape better policy and regulation going forward.