Speaker Abbas: Petroleum Sector Hindered by Inefficiencies and Outdated Frameworks

The Speaker of the House of Representatives, Hon. Tajudeen Abbas, on Monday emphasized that Nigeria’s petroleum sector has long been hindered by inefficiencies and outdated regulatory frameworks. He made this statement at a workshop in Abuja aimed at enhancing lawmakers’ understanding of the petroleum sector and equipping them with the necessary legislative tools to support the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The workshop, which brought together key stakeholders, was designed to deepen participants’ understanding of the NUPRC’s operations, the legal framework governing its activities, and the broader dynamics of the petroleum industry. This initiative is part of ongoing efforts to ensure effective oversight and accountability in the sector.

Abbas underscored that the petroleum sector has been a critical pillar of Nigeria’s economy, contributing significantly to the nation’s GDP and serving as the primary source of foreign exchange earnings. He acknowledged the pivotal role the National Assembly has played in driving reforms within the sector, from the enactment of legislation to oversight activities, which have worked towards ensuring sustainability and improving effectiveness.

“Legislative oversight is a cornerstone of democracy and good governance,” Abbas stated, emphasizing that the Petroleum Industry Act (PIA) highlights the importance of parliamentary scrutiny in promoting accountability within the oil and gas sector.

He noted that despite the petroleum sector’s crucial role in the national economy, its potential has often been stifled by inefficiencies and outdated regulatory frameworks. However, Abbas highlighted that the enactment of the Petroleum Industry Act (PIA) in 2021 marked a turning point, bringing forward much-needed reforms that have reshaped the governance, operations, and transparency of the industry. The PIA now provides a solid framework for oversight, allowing the National Assembly to monitor regulatory agencies such as the NUPRC.

The Speaker specifically pointed to the NUPRC as central to transforming the upstream petroleum sector. He explained that the NUPRC’s mandate includes promoting transparency, accountability, and the sustainable management of petroleum resources. Abbas also noted some immediate benefits of the PIA, including enhanced regulatory clarity, increased investor confidence, and a more structured approach to addressing environmental and community issues. However, he acknowledged that there are still challenges to overcome, such as the need for further infrastructural development, capacity building, and full implementation of the PIA’s provisions.