PIA Attracts $16bn Oil Investments – Reps

The Deputy Speaker of the House of Representatives, Benjamin Kalu, on Monday said that the Petroleum Industry Act 2021 has attracted about $16bn worth of investments in the petroleum sector since it was signed into law a few years ago.

This came as the House expressed deep concern over the relentless scourge of crude oil theft, which is bleeding the nation of an estimated $79.4m daily, a staggering economic sabotage threatening Nigeria’s fiscal stability and energy security.

At the prevailing exchange rate of N1,531 to the dollar, Nigeria is losing approximately N121.56bn every single day to crude oil theft.

Kalu also described the PIA as a transformative policy already yielding dividends across the petroleum value chain. He stated this in Abuja at an event organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the General Counsel and Legal Advisers Forum.

Represented by Imo lawmaker Ikenga Ugochinyere, Kalu noted that the PIA is driving renewed investor confidence and economic recovery.

“Just two years after the PIA was passed, Nigeria has attracted $16bn in investment commitments — a 28,991 per cent leap from the pre-PIA baseline of just $55m in 2020. Oil production has also rebounded, reaching 1.69m barrels per day by the end of 2024 — the highest in nearly four years,” he stated.

The event, themed “Advancing a Collaborative Compliance Culture in Nigeria’s Midstream and Downstream Petroleum Sectors,” brought together legal professionals, regulators, and industry stakeholders to evaluate the evolving landscape under the PIA.

The Deputy Speaker added that Nigeria emerged as Africa’s top destination for oil and gas investment in 2024, securing three out of four Final Investment Decisions made by global energy giants.

“These are not just figures — they represent jobs, infrastructure, and a revitalised oil and gas industry. The PIA is a legislative milestone that has repositioned Nigeria as a preferred destination for energy investment,” he added.

He, however, stressed the need to tackle perennial challenges, especially oil theft, which he said costs the country an estimated $79.4m daily. Kalu, who represents Bende Federal Constituency, Abia State, also called for enhanced legislative oversight and stronger collaboration with regulatory bodies to combat the menace.

He said, “To fully harness the gains of the PIA, we must reinforce our resolve to combat oil theft through smart legislation and robust regulatory support. Our goal must be sustainable development, not just for the industry but for the host communities and the entire Nigerian economy.”

On oil theft, he said, “Continued legislative attention is 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.”

In his contribution, NMDPRA Chief Executive, Farouk Ahmed, represented by an Executive Director, Ogbugo Ukoha, emphasised the critical role legal practitioners play in ensuring regulatory compliance and operational efficiency across the midstream and downstream value chain.

He revealed that the agency is currently working to streamline its regulations based on industry feedback. “We are harmonising existing rules to eliminate duplications and improve ease of doing business. The goal is to build a robust, investment-friendly environment while maintaining strict compliance,” Ukoha said.

He explained that under the PIA, all midstream and downstream operations must now be licensed by the Authority, adding that the Act has fundamentally restructured the industry’s regulatory framework.

Delivering a paper titled “Aligning the Legal Advisory Role with Regulatory Mandates and Operational Realities,” NMDPRA Secretary and Legal Adviser, Joseph Tolorunse, urged in-house and external legal counsels to familiarise themselves with the PIA’s licensing structure.

“There are over 17 types of licences under the PIA that cover various operations in the midstream and downstream sectors. Legal advisers must know these inside out,” he said.

Tolorunse also advocated for a proactive legal culture that prioritises compliance, alternative dispute resolution, and close engagement with evolving policies. “Legal departments should not only interpret laws but support operational teams in aligning their strategies with regulatory trends,” he stressed.