The Petroleum Industry Act (PIA), signed into law in 2021, has reshaped Nigeria’s oil and gas sector, attracting $16 billion in investment commitments and generating a record ₦50.8 trillion in crude oil and gas revenue in 2024 alone.
This was disclosed by Rt. Hon. Benjamin Kalu, Deputy Speaker of the House of Representatives, during the 2025 General Counsel and Legal Advisers Forum for Midstream and Downstream Petroleum Companies in Abuja. The event, hosted by the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), focused on building a culture of collaborative compliance within the sector.
PIA Unlocks Investment and Sector Efficiency
Represented by Hon. Ugochinyere Ikenga, Chairman of the House Committee on Petroleum Resources (Downstream), Kalu explained that the PIA has transformed Nigeria’s petroleum sector by clarifying regulatory roles, improving transparency, and boosting investor confidence.
According to him, oil production rose to 1.69 million barrels per day, and the sector witnessed a 28,991% surge in investment flows since the law’s enactment.
“This performance confirms the PIA’s impact. It’s no longer theory, it’s tangible progress backed by hard numbers,” Kalu said.
Revenue Boost and Compliance Gains
Nigeria earned ₦50.88 trillion from crude oil and gas exports in 2024, and expects even higher revenue in 2025. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) alone collected ₦4.344 trillion in 2023 a 14.89% increase from 2022.
Before the PIA, the sector operated under a fragmented and overlapping regulatory structure. The Act changed this by establishing two clear regulatory agencies: NUPRC for upstream and NMDPRA for midstream and downstream. This has led to stronger oversight, tighter compliance, and quicker responses to industry challenges.
Oil Theft Still a Major Concern
Despite the progress, Kalu highlighted oil theft as a persistent challenge, costing the nation about $79.4 million (₦122.6 billion) daily.
“We cannot ignore this. Oil theft continues to sabotage our gains. The National Assembly must enhance oversight and pass security-focused legislation to close the gaps,” he warned.
Next Steps for Nigeria’s Energy Future
Kalu stressed that sustaining PIA gains requires strong legislative backing, policy continuity, and improved support for host communities. He urged stakeholders to remain committed to the law’s implementation to realise Nigeria’s full energy potential.
“The PIA laid a solid foundation. It’s up to us to build Nigeria into a top-tier global petroleum player, while ensuring growth benefits all Nigerians,” he concluded.