Why regulatory synergy is key to growth and investor confidence in Nigeria’s petroleum sector, By Akpandem James

The Nigerian oil and gas industry has frequently been in the news for various reasons. Decades before the Petroleum Industry Act (PIA) was enacted in August 2021, the country’s oil and gas exploration sector faced significant challenges due to unclear rules, changing policies and low investor confidence. This was in spite of its key role in the country’s economy. These issues reduced investment funds, delayed project execution and weakened its ability to compete in the rapidly changing global energy market. The PIA altered the narrative. It came with provisions to clarify rules, separate government roles and ensure fiscal stability. Presidential Orders followed, to make things easier for operators and clearer for investors.

The results are obvious today, but the impact could not have been so pronounced if not for the resolve of sector regulators to translate legislation into action. The increasing improvements recorded in investment disposition, operational transparency and sector stability highlight the significance of sustained policy implementation in repositioning the country’s petroleum industry for long-term growth. To reflect current realities, recently there was a transition in the boards and management of the two industry regulators: the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream/Downstream Regulatory Agency (NMDPRA).

The twin issues of regulatory stability and operational accountability have often been the nightmare of operators and investors. These weigh more heavily on the regulators, and more on NUPRC, given its unique interface with global players, including local and international partners and stakeholders, as well as its obligation to align with global best practices. Any seeming hiccup in the chain could trigger apprehension. It is against this backdrop that leadership continuity at the NUPRC assumed notable significance, informing the resolve of the new leadership of the regulatory institutions to deepen collaboration, sustain sectoral momentum, drive growth across the oil and gas value chain and strengthen investor confidence.

On Tuesday, December 23, 2025, Engineer Gbenga Komolafe, after four years of transformative leadership, formally handed over the reins at the NUPRC to Mrs Oritsemeyiwa Eyesan, a seasoned industry professional. The smooth transition signalled continuity in regulatory accountability and a renewed commitment to strengthening regulation and sustaining investor confidence, two critical enablers of a thriving petroleum sector. As the pioneer head of the Commission, Eng. Komolafe laid the foundation for a robust regulatory framework and strengthened accountability. Mrs. Eyesan is committed to building on this legacy by fully digitizing operations, increasing production and enhancing transparency to strengthen sectoral gains.

Mrs Eyesan brings more than three decades of industry experience to the role. She retired from the Nigerian National Petroleum Company Limited (NNPCL) in November 2024 as Executive Vice President, Upstream, where she oversaw Nigeria’s upstream petroleum operations. Often, leadership transitions in critical sectors raise concerns about policy direction and operational continuity. In this case, however, such fears do not arise, given the shared vision of repositioning Nigeria’s oil and gas sector as a global reference point in line with the PIA mandate. She made this clear when sharing her vision. It focuses on boosting oil and gas production, attracting investment and turning the Commission into a business enabler. She plans to drive this through digital tools, enhanced openness and staff capacity development.  Her open-door policy emphasises regular engagement with staff, as well as internal and external stakeholders.

The new Commission Chief Executive, since assuming, has consistently articulated a clear mandate to advance Nigeria’s upstream sector in line with the PIA. She has reiterated her commitment to making the Commission a business enabler and reigniting upstream investments, while setting firm production targets to grow crude oil and gas output. “The goal is that we must enable the industry; we are regulators. We must enable the industry through our interactions with stakeholders and with everyone. My main objective is to ensure that we make a difference. I believe the NUPRC is at the centre of the industry,” she said. With stakeholder cooperation, she remains confident of achieving tangible results, telling staff: “If we work together, we can unleash opportunities. I don’t see impediments, only opportunities.”

Her familiarity with regulatory requirements and capacity to deliver have been attested to by the African Energy Chamber (AEC), which hailed her appointment. The AEC Chairman, N. J. Ayuk, in a statement, expressed confidence in her leadership, saying it would further strengthen private-sector confidence and position Nigeria as Africa’s leading investment destination for oil and gas.

Reinforcing the importance of regulatory stability and accountability, Ayuk noted that global investors are increasingly selective as competition for capital intensifies across both frontier and established markets. He observed that regulatory credibility, transparency and predictability have become decisive factors, adding that slow and unpredictable approval processes, marked by lengthy permitting timelines, unclear requirements and frequent changes, have historically deterred investment in Nigeria. These issues have already been carefully considered and are currently being addressed through the Presidential Orders of 2024 and 2025.

Recognising that the sector cannot be effectively driven in silos, the NUPRC leadership has already taken steps to deepen collaboration with the NMDPRA to eliminate regulatory bottlenecks and boost investor confidence. Within two weeks of assuming office, Mrs. Eyesan met with the leadership of the sister agency and both agreed to strengthen cooperation. A joint team has since been assembled to identify and resolve regulatory issues, ensure seamless regulation across the value chain and promote the overall interests of the industry. She believes that collaboration between the two regulators is essential, as both institutions drive growth in the sector.

“Whether we are talking about upstream, midstream or downstream, we are enablers for the industry, and the industry is the heartbeat of the nation’s economy,” she said. “We cannot achieve sustainable growth if we do not work together. Sometimes there is no fine line between upstream, midstream and downstream, and lack of coordination can create problems. I believe this marks the beginning of many more engagements.”

Echoing this sentiment, the NMDPRA Chief Executive, Aliyu Mohammed, underscored the need for harmonious cooperation, noting the agencies’ shared heritage as offshoots of the defunct Department of Petroleum Resources (DPR). He craves stronger relationships and amicable resolution of differences, noting that closer collaboration would improve regulatory efficiency and attract investment, with long-term benefits for the national economy.

Recently, President Bola Ahmed Tinubu nominated a seasoned lawmaker and industry insider, Senator Magnus Abe, for Senate confirmation as Chairman of the NUPRC Board. A renowned lawyer from Rivers State, Senator Abe has been associated with the petroleum sector through legislative oversight and reforms, including contributing to the framework of the PIA 2021. He served as a member of the NNPC Board and is currently Chairman of the National Agency for the Great Green Walls. With a Commission Chief Executive boasting over three decades of industry experience and a Board Chairman of proven pedigree, operators and investors in Nigeria’s upstream oil and gas sector can draw renewed confidence.

Akpandem James, an Abuja-based communication consultant, is a Fellow of the Nigerian Guild of Editors and member of the International Press Institute (IPI).