Implementing the Petroleum Industry Act: Nigeria’s Key to Economic Growth
In a recent stakeholders’ engagement in Abuja, the Federal Ministry of Petroleum Resources, along with key players in the oil and gas sector, emphasized the importance of implementing the 2021 Petroleum Industry Act (PIA) to drive economic growth. At the meeting, Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources, represented by Mohammed Abubakar, Director of Midstream and Downstream, highlighted the need for swift implementation.
“The PIA marks a new chapter for investors, providing clarity and stability in fiscal regimes, essential for fostering both local and international investment,” Ella stated. He also pointed to the Act’s role in promoting efficiency, boosting transparency, and enhancing sustainable practices in the oil and gas sector.
Nigeria’s oil production has seen a significant rebound in 2023, averaging 1.4 million barrels per day in the third quarter, a notable improvement from the previous year. According to Ella, this resurgence was largely driven by the enhanced operational environment fostered by the PIA, as well as continued efforts to combat oil theft and pipeline vandalism.
To maximize the benefits of the PIA, Ella encouraged all stakeholders to focus on actionable outcomes, emphasizing the importance of collaboration across government, industry, investment, and host communities.
In line with the PIA’s objectives, Ahmed Galadima, Executive Secretary of the Petroleum Technology Development Fund (PTDF), expressed the organization’s commitment to aligning its strategies with the Act’s key drivers. This is expected to enhance local participation and ensure that Nigeria benefits fully from its hydrocarbon wealth.
Galadima highlighted the PTDF’s plans to expand partnerships with international research institutions, oil companies, and multilateral organizations to support skills transfer, capacity building, and the integration of cutting-edge technology.
Mohammed Shehu, Chairman of VG Energy, emphasized the role of technology in revolutionizing the oil and gas sector. He suggested that the government could leverage pipeline surveillance, blockchain technology, and artificial intelligence to boost activities and combat oil theft.
An official with YIN, Gideon Obande, also stressed the need for a systematic assessment of production levels to track oil theft accurately. “There has to be a systematic assessment of production levels to address operations to the extent that we can be precise about the barrels of oil we produce as a nation and track the stolen ones,” he said.
The successful implementation of the PIA holds great promise for Nigeria’s economic growth, positioning the country to lead Africa in energy investments and attract global capital.