Nigeria's Oil & Gas Sector: Investor Confidence Soars as Reforms Take Hold, Energy Group Says
The Nigerian oil and gas industry is experiencing a remarkable resurgence, with investor confidence on an upward trajectory.
This positive shift is largely attributed to the decisive implementation of the Petroleum Industry Act (PIA) and the reform agenda spearheaded by President Bola Tinubu.
Source: Facebook
The Energy Governance Alliance (EGA), a prominent coalition advocating for transparency in the sector, has lauded the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and its Chief Executive, Engr. Gbenga Komolafe, for their instrumental role in this transformation.
A hostile environment transformed
According to a statement released by EGA's Executive Director, Kelvin Sotonye William, the landscape for international investors in Nigeria's oil and gas sector was once increasingly hostile.
Regulatory bottlenecks, inconsistent policies, and frequent disputes with host communities created an atmosphere of uncertainty.
This climate forced many International Oil Companies (IOCs) to scale back operations or even divest entirely, leading to a significant decline in investor confidence.
William noted, "Under previous regimes, the perception was that Nigeria’s upstream environment had become too unstable to guarantee the kind of long-term commitments that global energy investors demand.
This was why many IOCs either left or significantly reduced their exposure.”
Tinubu's reforms and NUPRC's stewardship
The tide has undoubtedly turned, thanks to the reforms initiated by President Tinubu and the robust implementation of the PIA.
The EGA highlights that Engr. Komolafe’s leadership at NUPRC has been crucial in providing much-needed regulatory clarity, predictability, and investor assurance – elements that were conspicuously absent in the past.
Recent developments serve as clear indicators of this restored confidence. The Production Sharing Contract (PSC) between the Nigerian National Petroleum Company (NNPC) Limited and TotalEnergies, along with the renewed participation of IOCs in bid rounds, is are concrete example of this positive shift.
Barclays Bank visit: A symbol of global trust
Further reinforcing this trend is the recent visit of Barclays Bank Plc executives to the NUPRC headquarters in Abuja.
This visit signifies a critical development: global financial institutions are now openly expressing their readiness to fund oil and gas projects in Nigeria.
"The presence of Barclays Bank executives at the Commission is symbolic," the EGA stated.
Structural change and tangible benefits
The EGA emphasises that Barclays’ interest is not an isolated incident but rather part of a broader pattern.
International actors are increasingly recognising that the synergy between the PIA and President Tinubu’s reformist agenda has made Nigeria an attractive destination for capital inflows once more.
The story has shifted from abandonment to renewed engagement.”
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The Energy Governance Alliance has reaffirmed its unwavering support for the NUPRC and the Tinubu administration, viewing these recent milestones as undeniable proof that consistent application of reforms can truly transform the oil and gas industry and reposition Nigeria as a premier global investment destination.
NUPRC honoured for transparency
Legit.ng earlier reported that Public Space Tracker, a West African organisation, has recognised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as the most transparent and outstanding government agency in Nigeria.
this commendation highlights the exceptional leadership of Engr. Gbenga Komolafe, NUPRC's Chief Executive, whose tenure has established new standards for accountability and efficiency in Nigeria's oil and gas sector.
The Public Space Tracker praised NUPRC for its "remarkable openness, policy innovation, and integrity" in managing Nigeria's upstream petroleum resources since Komolafe took office.
Source: Legit.ng
