Why Tinubu’s Reforms in Oil and Gas Regulation Are Worth Celebrating, Energy Group Explains

• Nigeria's oil and gas sector is experiencing a revival under President Tinubu, according to the African Centre for Energy Governance and Accountability (ACEGA)
• ACEGA highlighted improvements such as increased crude oil production and effective implementation of the Petroleum Industry Act (PIA), among others
• While praising the progress, the group urged further investment and strategic planning to overcome lingering energy challenges

Abuja, FCT - Nigeria’s energy sector is undergoing what a leading watchdog has described as a “bold reset,” with President Bola Tinubu earning praise for delivering what it calls significant reforms in oil and gas regulation.

The African Centre for Energy Governance and Accountability (ACEGA) said the Tinubu administration’s support for the Petroleum Industry Act (PIA) and efforts to boost crude oil output have restored investor confidence and positioned the country for sustainable energy growth.

ACEGA hails regulatory overhaul

In a statement signed by its executive director, Dr. Usman Bello Idris, ACEGA described Tinubu’s approach to sector reform as “groundbreaking and well-coordinated.” The group noted that Nigeria’s oil and gas sector had been plagued for years by inefficiency and declining production, but recent developments signal a reversal.

“What we are seeing today under President Tinubu’s leadership is a bold reset — one that respects the sanctity of the Petroleum Industry Act while pushing for real, measurable growth,” said Idris.

Oil output on the rise, says ACEGA

ACEGA highlighted a notable uptick in Nigeria’s crude oil production, which has reportedly climbed steadily since mid-2023. Output has reportedly exceeded 1.7 million barrels per day in recent months, a significant recovery from below 1.2 million barrels per day in 2022, when theft, vandalism, and infrastructure issues hampered production, according to the group.

Dr. Idris attributed the improvement to targeted interventions, including the revival of dormant assets, enhanced metering systems, and security operations around key pipelines.

PIA implementation gains momentum

The watchdog also praised the administration’s commitment to implementing the PIA, which was signed into law in 2021 after nearly two decades of debate. According to ACEGA, the Tinubu government has gone beyond mere rhetoric by empowering key regulatory agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to execute the Act’s mandates.

“From licensing to fiscal reforms and host community development, the PIA is being treated not as a trophy law, but as a working instrument of reform,” Idris said.

He cited the establishment of Host Communities Development Trusts, updated fiscal incentives for marginal fields, and clearer guidelines for environmental compliance as examples of progress.

ACEGA commends NUPRC

ACEGA commended NUPRC’s chief executive, Engr. Gbenga Komolafe, for advancing transparency and professionalism in the sector. It pointed to the commission’s initiatives to reduce production costs, implement real-time production monitoring, and streamline the oil block bidding process.

“The president has given NUPRC the room to work, and the results are showing,” the group noted, adding that the commission’s efforts to improve metering, curb theft, and encourage decarbonisation align with global industry standards.

ACEGA speaks on challenges in energy sector

Despite the progress, ACEGA warned that challenges remain. It called for increased investment in energy infrastructure, resolution of legacy disputes, and more strategic planning to align with global decarbonisation goals.

“The work is not done yet,” Idris said.

“Nigeria still faces challenges in refining capacity, gas monetisation, and access to energy for its people. But this administration has shown that with political will, the sector can be revived.”

ACEGA concluded its statement with a call to action, urging international oil companies, local investors, and host communities to support the government’s reform agenda.

“With sustained effort and cooperation, Nigeria’s oil and gas future can be cleaner, more transparent, and more rewarding for all stakeholders,” the group said.

FG grants NNPC, Shell, 4 others licence for gas distribution

In another report, the Nigerian government gave six businesses ten gas distribution licenses (GDL) to boost the nation's gas consumption campaign.

The beneficiary companies are: Axxela, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Limited, NNPC Gas Marketing Limited, and Shell Nigeria Gas Limited.

The government said that the GDL, which is granted to qualified applicants to distribute gas at the "last mile," is a license that grants the sole right to establish, build, and run a gas distribution system in a designated local Gas Distribution Zone (GDZ) as stipulated in Sections 148–152 of the Petroleum Industry Act (PIA).

Source: Legit.ng