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An energy law expert, Dr Ayodele Oni, has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to ensure regulatory certainty, faster approvals and policy consistency to attract new investment in the upstream oil and gas sector.
Oni, Partner and Chair of the Energy and Natural Resources Practice Group at Bloomfield Law Practice, made the call saying investors were seeking a stable and predictable regulatory environment rather than additional regulations, stressing that certainty remained the key driver of investment decisions.
“The NUPRC should prioritise published timelines for approvals and consents, fully implement the fiscal provisions of the Petroleum Industry Act (PIA) and simplify licence administration.
“Predictability, not new rules, is what investors are pricing,” he said.
According to him, effective regulation and an investor-friendly environment are complementary when rules are transparent, consistently applied and free from discretionary implementation.
Oni identified delays in approvals for asset transfers, field development plans and uncertainties surrounding Host Community Development Trust (HCDT) obligations as major bottlenecks despite the enactment of the PIA.
He recommended statutory timelines for regulatory approvals, delegated authority for routine matters and clearer regulatory guidelines to improve efficiency.
The energy expert also called on the commission to strengthen transparency by publishing service delivery timelines for all approval categories, tracking performance through a public dashboard and introducing deemed approvals where regulatory deadlines were not met.
“Investors can manage delays, but they cannot manage uncertainty and lack of transparency,” he said.
Oni urged the Federal Government to deepen incentives for investments in deepwater and petroleum prospecting assets.
While commending the government’s 2024 fiscal incentives for deepwater and non-associated gas projects, he said such measures should be backed by legislation rather than relying solely on executive orders.
He also advocated lower signature bonuses, royalty relief linked to first oil production and more flexible work programme obligations for petroleum prospecting assets.
On financing, Oni said the NUPRC could support indigenous operators by maintaining a reliable petroleum title registry, accelerating approvals for security interests over petroleum assets and encouraging reserves-based lending.
“A regulator that provides certainty on ownership and transferability of assets reduces the cost of capital for indigenous companies,” he said.
He described digitalisation as critical to regulatory reform, recommending fully electronic processing of applications, automated tracking systems and digital payment platforms to reduce delays and eliminate opportunities for rent-seeking.
Oni further stressed the need for policy stability, urging the commission to uphold the stability provisions of the PIA, protect existing fiscal terms and engage stakeholders before introducing regulatory changes.
He identified crude oil theft and insecurity as the biggest constraints to investment in onshore and shallow-water operations.
The expert, therefore, called for stronger metering systems, improved hydrocarbon accounting, effective prosecution of oil theft and community-based pipeline surveillance.
He also advocated stronger collaboration among international oil companies, indigenous operators and host communities through standardised HCDT templates, model joint operating agreements and structured divestment frameworks with clearly defined environmental and community obligations.
Drawing lessons from Guyana, Brazil and Angola, Oni said competitive fiscal regimes, efficient licensing processes and regulatory certainty had enabled those countries to attract significant upstream investments.
He noted that Angola’s reforms demonstrated that mature oil-producing nations could revive investment through investor-focused regulation.
Oni urged Nigeria to position itself as a competitive, low-cost and lower-carbon oil producer by enforcing gas flare reduction measures, promoting gas development as a transition fuel and strengthening emissions reporting standards.
“Investment will continue to flow into hydrocarbons for many years, but it will increasingly favour producers that are both cost-competitive and environmentally responsible. Nigeria must position itself in that category,” he said.
