Obsolete Laws Hindering Petroleum Industry’s Potential – Speaker Abbas

The Speaker of the House of Representatives, Hon. Abbas Tajudeen, has said the potential of the petroleum sector as the backbone of Nigeria’s economy is often hindered by inefficiencies and outdated regulatory frameworks.

Abbas stated this at a retreat for members of the House’s petroleum-related Committees to learn about the Nigeria Upstream Petroleum Regulatory Commission’s (NUPRC’s) mandate.

He said enacting the Petroleum Industry Act (PIA) 2021 marked a historic turning point, introducing reforms that have redefined the oil and gas industry’s governance, operations, and transparency.
Speaker Abbas said these reforms include more precise delineation of roles, streamlined licensing procedures, enhanced environmental safeguards, and a renewed emphasis on attracting investments.

“The NUPRC, established to regulate the upstream petroleum sector, is central to this transformation. As Section 94 of the PIA outlines, its mandates include ensuring transparency, accountability, and sustainable resource management. Some immediate gains include improved regulatory clarity, increased investor confidence, and a structured approach to addressing environmental and community issues.

“However, challenges remain, including the need for further infrastructural development, capacity building, and the full implementation of the PIA’s provisions.

“Legislative oversight is a cornerstone of democracy and good governance. The Petroleum Industry Act underscores the importance of parliamentary scrutiny in ensuring accountability within the oil and gas sector. It provides a robust framework for oversight, empowering the National Assembly to monitor the operations of regulatory agencies like the NUPRC.

“However, effective oversight is challenging. The technical complexity of the extractive industry, information asymmetry, and the ever-evolving nature of the sector can limit the ability of parliamentarians to perform their duties effectively.

Members must develop technical expertise, engage in continuous learning, and foster collaborative relationships with stakeholders to overcome these obstacles.

“I urge the committees to adopt a strategic approach that prioritises constructive dialogue and aligns legislative priorities with the operational realities of the NUPRC. He added that regular updates, joint assessments, and targeted inquiries could streamline oversight processes and improve outcomes.