FG Rolls Out 21 New Oil Regulations to Revive Investments, Re-attract Global Players

In a decisive move to revamp Nigeria’s struggling upstream oil and gas sector, the Federal Government has gazetted 21 new regulations under the Petroleum Industry Act (PIA) 2021, setting the stage for increased investor confidence, transparency, and operational efficiency.

The announcement was made by Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), during the 48th Annual International Conference and Exhibition of the Society of Petroleum Engineers (SPE) in Lagos.

Komolafe noted that the regulations are tailored to bring clarity to regulatory frameworks, attract capital, and align Nigeria’s oil sector with national priorities and global standards.

“These regulations provide the clarity required to support investment, streamline administration, and align upstream operations with national and global priorities,” he said.

According to the NUPRC boss, the 21 regulations cover key areas such as licensing, field development, production measurement, decommissioning, and more — all aimed at reducing uncertainty for investors and encouraging new project take-offs.

Experts Say New Rules Could Spark Sector Turnaround

Energy analysts have hailed the move as long overdue. Dr. Diran Fawibe, Chairman of International Energy Services, said the new regulations, if well implemented, could restore investor confidence and fast-track upstream projects stalled due to regulatory bottlenecks.

“This is a positive development. Investors want predictability, and these regulations can remove ambiguity in the system. We may begin to see capital inflows into marginal fields and deeper offshore assets,” Fawibe said.

Mrs. Nnenna Okafor, an oil and gas legal consultant, also emphasized the potential impact on due diligence and risk assessment in asset acquisitions.

“Clarity in regulations improves corporate governance and accountability. For international oil companies and financiers, that’s a green light,” she explained.

Lokpobiri Calls on EPC Firms to Return

Meanwhile, Minister of Petroleum Resources (Oil), Heineken Lokpobiri, used the same platform to urge Engineering, Procurement, and Construction (EPC) companies that had exited Nigeria to return, citing the improving investment climate under President Bola Tinubu’s administration.

“The current administration has worked tirelessly to ensure a more stable and investment-friendly business environment,” Lokpobiri said.

He acknowledged that overregulation and policy uncertainty had driven some EPC firms away but stressed that reforms introduced by the PIA and strategic government incentives now make Nigeria a more attractive destination.

“EPC firms play a critical role in infrastructure and technology transfer. We want them back,” he added.

A New Era?

The gazetting of these 21 regulations is being viewed as a strong signal of Nigeria’s commitment to reforming its oil and gas landscape. It also marks a shift from policy inertia to proactive governance — a move that could help Nigeria reclaim its place as a top investment hub in Africa’s energy sector.

If these reforms are matched with implementation discipline and fiscal stability, stakeholders believe the upstream segment could witness a resurgence in exploration activities, project financing, and production growth in the near term.