The Federal Ministry of Petroleum Resources and key stakeholders in the oil and gas industry have emphasized the need for full implementation of the 2021 Petroleum Industry Act (PIA) to stimulate economic growth. Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources, alongside other experts, made this call during a stakeholders' meeting in Abuja.
The one-day engagement, organized by the Ministry, focused on leveraging the PIA as a catalyst for attracting investment into Nigeria’s oil and gas sector. Mohammed Abubakar, Director of Midstream and Downstream, represented Ella at the event. He highlighted that the enactment of the PIA in 2021 was aimed at promoting transparency, enhancing efficiency, and ensuring sustainable practices within the industry.
Ella noted, "The PIA has brought a new level of clarity and stability in fiscal policies, which is crucial for attracting both local and foreign investments." He also pointed out that Nigeria saw a recovery in oil production in 2023, averaging 1.4 million barrels per day in the third quarter, a significant improvement driven by the enhanced operational environment under the PIA and ongoing efforts to curb oil theft and pipeline vandalism.
Stakeholders were urged to prioritize actionable outcomes that would maximize the benefits of the PIA. "With the PIA, Nigeria is well-positioned to lead Africa in energy investments, attract global capital, and maintain its influence on the international energy stage," Ella added.
Ahmed Galadima, Executive Secretary of the Petroleum Technology Development Fund (PTDF), said the organization had been focusing on human capacity development, research, and technological innovation to support energy transition and gas development in line with the PIA’s objectives. Galadima, represented by Muhammad Abdulrahman, emphasized that PTDF was committed to enhancing local participation and ensuring that Nigeria fully benefits from its hydrocarbon resources.
"We have a roadmap that strengthens our collaborations with international research institutions, oil companies, and multilateral organizations to ensure skill transfer, capacity building, and the adoption of cutting-edge technologies in Nigeria’s oil and gas sector," Galadima stated.
Mohammed Shehu, Chairman of VG Energy, underscored the potential of technology in tackling oil theft and increasing government revenue. He advocated for the deployment of advanced technologies such as pipeline surveillance systems, blockchain for supply chain management, the Internet of Things (IoT), and artificial intelligence to revolutionize the sector.
Gideon Obande, a representative from YIN, stressed the importance of accurately measuring Nigeria's daily crude oil production to curb oil theft. "It is essential to have a systematic assessment of production levels so that we can precisely track the amount of oil produced and what is being stolen," he said.
The meeting highlighted the critical role that the full implementation of the PIA and the integration of modern technology can play in strengthening Nigeria’s oil and gas sector and boosting economic growth.
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