PIA: Nigeria Must Win Battle Against $79.4m Daily Oil Theft — Kalu

Deputy Speaker of the House of Representatives, Hon . Benjamin Kalu, on Monday, said Nigeria must win the battle against oil theft, which continued to cost it approximately $79.4 million daily.

Kalu said while Petroleum Industry Act (PIA) 2021 has revolutionalise the nation’s oil industry, continued legislative attention was absolutely required to address the lingering implementation challenges, particularly the persistent and economically crippling issue of oil theft.

The deputy speaker said this while delivering a lecture at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and
Legal Advisers Forum for Midstream and Downstream Petroleum Companies in Nigeria 2025 in Abuja.

In his lecture titled: ‘Legislation as an Enabler of Compliance, Investment, and Sector Growth: The Role of the National Assembly in Strengthening the Post-PIA Petroleum Landscape’, Kalu said in just two years post-enactment, the impact of the Act was undeniable.

Represented by the chairman, House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, the deputy speaker said the Legislature’s pivotal role in enacting and tirelessly overseeing the PIA has yielded remarkable results such as over $16 billion in investment commitments, significant improvements in oil production, robust revenue generation, amongst others.

“The statistical evidence overwhelmingly supports the PIA’s success – from a truly astounding 28,991% increase in investment to achieving 1.69 million barrels per day in oil production and generating N50.88 trillion in revenue. These figures are not just encouraging; they are a clear validation of the PIA’s effectiveness.

“However, we must not rest on our laurels. Continued legislative attention is absolutely required to address the lingering implementation challenges, particularly the persistent and economically crippling issue of oil theft, which continues to cost Nigeria approximately $79.4 million daily. This is a battle we must win.

“The path forward demands sustained engagement from the National Assembly. This means enhanced oversight, carefully targeted legislation to address our security challenges, and unwavering support for our regulatory agencies.

“By diligently building on the robust foundation laid by the PIA, Nigeria can not only achieve its goal of becoming a leading global petroleum producer but also ensure sustainable development for our host communities and the broader Nigerian economy.

“At its core, the PIA 2021 has established a robust legal framework that has dramatically enhanced regulatory compliance across Nigeria’s petroleum sector. Before the PIA, we operated under a fragmented regulator structure, a table of overlapping mandates that hindered efficiency and accountability.

“The PIA swept this away, creating two distinct, powerful regulatory bodies: the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This clear delineation of roles has been a game-changer.

“Let us look at the data. According to NEITI audits, our baseline compliance rate in 2015 stood at 94%. While seemingly high, it masked underlying inefficiencies and vulnerabilities. Post-PIA implementation, we have seen a
tangible enhancement in regulatory effectiveness.

“The NUPRC alone generated an astounding ₦4.344 trillion in revenue during 2023, representing a 14.89% increase compared to 2022 figures. This is not just about collection; it’s about a more efficient and transparent system at work.

“The Commission has successfully issued 12 gazetted regulations, providing the much-needed clarity and predictability that investors crave. Simultaneously, it has maintained strict oversight over 571 oil spill incidents, diligently investigating each one. It is a sobering fact that 59.01% of these spills were attributed to sabotage, a challenge we will address further.

“Post-PIA Investment Commitments (2022-2024): $16.0 billion, as reported by NUPRC in 2024.2024 Final Investment Decisions: $13.5 billion, confirmed by Wood Mackenzie. As we all know, according to available data, Nigeria earned ₦50.88 trillion in revenue from crude oil & gas exports in 2024 and is projected to earn more at the end of 2025.

“Critically, our Oil Production in December 2024 reached 1.69 million barrels per day. It is with immense pride that I can state that Nigeria emerged as the leading destination for oil and gas investments in Africa in 2024, accounting for three out of four Final Investment Decisions announced by global oil and gas majors,” Kalu said.

The Chief Executive of NMDPRA, Farouk Ahmed, said the role of legal practitioners is critical across the midstream and downstream energy business value chain in the promotion of optimal regulatory compliance to all set rules and standards of operations in Nigeria’s complex operational and volatile market environment.

Represented by the executive director, distribution systems, storage and retailing infrastructure in the authority, Ogbugo Ukoh, Ahmed said the PIA has fundamentally restructured Nigeria’s petroleum industry by delineating regulatory responsibilities into the Upstream and the Midstream and Downstream Petroleum operations.

“The Act prescribes that all operations in the midstream and downstream sector can only be conducted under appropriate licenses, permits and authorisations granted by the NMDPRA and the authority is fully guided by the provisions of the law in providing regulatory oversight of the Industry.

“The PIA also mandated the NMPDRA to make Regulations
concerning midstream and downstream petroleum operations in consultation with its licensees and stakeholders and we note and thank all of you for your effective participation and contributions in all the stakeholder consultative sessions that we have held over the years,” he said.

In a presentation titled: ‘Aligning the Legal Advisory Role with Regulatory Mandates and Operational Realities in the Midstream and Downstream Petroleum Industry’, the NMDPRA Secretary and Legal Adviser, Dr Joseph Tolorunse urged counsels and legal adviser to be more proactive than reactive in their approaches.

Tolorunse said legal advisers in the petroleum sector must reposition themselves as strategic business partners, adding that their role must bridge the legal regulatory frameworks with operational complexities, thereby enabling residents’ compliance and commercial success.

“To align the legal advisory role with regulatory mandates and operational realities is to embrace the full spectrum of legal leadership. It requires foresight, system thinking, operational empathy, and regulatory literacy.

“Legal teams may consider, one, institutionalised cost-functional legal review of key operational decisions and contracts, not as an afterthought, but as a compliant aid. Document and periodically review your legal team’s strategy. Ask who and when, try to identify who and when is your company, how, and at what escalation point.

“Invest in continuous legal training, focus on petroleum regulation, market reform and administrative law. Leverage international advisory memoranda as a tool to shape management’s understanding of regulatory implications before major decisions are made,” he added.