The Nigerian oil and gas sector has undergone significant transformation since the implementation of the Petroleum Industry Act (PIA) four years ago, according to top government officials speaking at the Energy Correspondence Association of Nigeria (ECAN) maiden conference in Abuja.
PIA: A Landmark Legislation Reshaping Energy Sector
The Minister of State for Petroleum Resources Gas declared that the PIA represents landmark legislation that has fundamentally redefined governance, fiscal, and operational frameworks within Nigeria's oil and gas industry. Represented by Director Gas MPR Ruth Mela-Nunghe, the minister acknowledged that while significant strides have been made in improving transparency and enhancing investor confidence, gaps remain in areas of cultural development, energy transition, and sustainable implementation.
"Over these four years, significant strides have been made in improving transparency, enhancing investor confidence, and strengthening regulatory institutions," the minister stated during the conference themed "Four Years of the PIA: Achievements, Gaps and the Road Ahead."
Tangible Progress in Regulatory Framework
Engineer Farouk A. Ahmed, Authority Chief Executive of NMDPRA, provided concrete evidence of progress, highlighting that crude supply to domestic refineries doubled from about 20,000 barrels per day in 2023 to above 40,000 barrels per day in 2025. This improvement directly results from NMDPRA's implementation of PIA 2021 provisions.
Local refining capacity showed remarkable growth, with PMS supply from domestic refineries surging from 1.3 billion litres in 2024 to 3.8 billion litres in 2025. The regulatory authority has successfully gazetted 18 regulations and developed comprehensive guidelines and standard operating procedures for sector implementation.
Gas Infrastructure and Investment Milestones
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) demonstrated substantial impact, investing over N287 billion across 62 projects involving 16 companies as of October 2025. This investment catalyzed an additional $500 million in gas infrastructure through strategic partnerships, including an MOU with AFRIEXIM Bank.
Major projects driving sector growth include:
- UTM Offshore and NLNG train 7
- AKK gas pipeline and OB3 gas pipeline
- AIPCC refinery and Indorama fertilizer plant
- Greenville's LNG & LCNG projects
The NMDPRA issued 10 gas distribution licenses covering 692km of pipeline network with capacity of 712MMscf/day, connecting 412 customers with total investment value estimated at $639.07 million.
Refining Capacity Expansion and Market Development
Significant progress in refining includes the issuance of 23 'License To Establish' refineries from 2021 to date, which upon completion will add over 850,000 barrels per day to Nigeria's existing 1,125,000 bpsd capacity.
In a groundbreaking development, the Authority awarded a license to establish and operate Nigeria's first Gas Trading Exchange to Jex Market Limited in May 2025, following the development of Gas Trading and Settlement Regulations in 2023.
Through efficient regulation, the Authority facilitated steady petroleum product supply with sufficiency averaging 12 to 48 days, effectively eliminating fuel shortages and catalyzing economic activities nationwide.
Regional Leadership and Future Outlook
NMDPRA's partnership with Platts S&P Global led to the first West African Product Reference Market Conference in May 2025, with agreements to establish Nigeria (Lagos) as a subregional hub for product price referencing and market offtake.
ECAN Chairman Mr. John Ofikhenua emphasized that the PIA represents a triumph of persistence after two decades of legislative efforts. "The PIA is not a finished product; it is a living document," Ofikhenua noted, highlighting the need for continuous evolution as global energy dynamics shift toward cleaner solutions.
Despite acknowledged challenges, officials expressed confidence that the PIA has established a solid foundation for Nigeria's energy future, bringing structure, transparency, and renewed confidence to the industry while reducing host community grievances through greater participation and belonging.
