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From Adanna Nnamani, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned that delays in delivering oil and gas projects could erode investment value and weaken Nigeria’s competitiveness in the global energy market.
The Chief Executive of NMDPRA, Rabiu Umar, gave the warning on Thursday in Abuja at the fifth edition of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Energy and Labour Summit.
Represented by the Executive Director, Corporate Services, Bashir Sadiq, Umar said Nigeria must accelerate the implementation of reforms and ensure faster project delivery to build a safe, competitive and attractive energy industry capable of creating jobs, attracting investments and generating greater economic value.
He said investors could manage risks when policies and regulations were clear and consistently implemented, but uncertainty made investment decisions more difficult.
The NMDPRA boss identified policy consistency, faster project delivery, gas development, security, local content, workforce development, host community engagement and execution discipline as critical priorities for the industry.
He warned that delays could significantly reduce the value of energy projects, noting that a project delayed by one year was not merely postponed but could become harder to justify and less competitive for investment.
“We need clear rules, standards, stable interpretation and participation of all the major stakeholders.
“A project delayed by one year is not simply postponed. It loses value, becomes harder to justify and competes less effectively in the global portfolio,” Umar said.
He also called for increased investment in gas infrastructure, describing gas as a critical driver of economic growth with the potential to support industries, power generation and wider economic development.
On security, Umar acknowledged improvements in the sector but stressed the need to sustain the gains to protect workers, production facilities, investments and government revenue.
He further advocated stronger local content participation, saying Nigerian companies and professionals should be empowered based on performance, quality, sustainability and value creation rather than mere compliance with regulations.
The NMDPRA chief also urged operators to prioritise workers’ safety, skills development and constructive labour relations, stressing that workers remained central to the successful delivery of projects.
He said sustainable oil and gas projects could not thrive without the acceptance and cooperation of host communities, urging industry players to make effective use of the host community development framework established under the Petroleum Industry Act.
Umar said Nigeria had the resources, skilled workforce, market and ambition required to remain a major global energy player, but must accelerate the conversion of reforms into tangible projects, jobs and economic value.
Meanwhile, the President of PENGASSAN, Festus Osifo, called for greater stability, policy consistency and stronger collaboration among government, regulators, operators, investors, workers and host communities.
Osifo said Nigeria was not short of resources, talent or market opportunities, but faced the challenge of converting its enormous potential into actual production, investment, jobs, industrial growth and export value.
He said the country’s energy sector had the capacity to play a major role in meeting Africa’s future energy needs, but this would require sustained reforms and collective action.
“Nigeria does not lack potential. We have resources, talent, industrial history, strong raw materials and energy demand. Nigeria has a role to play in meeting Africa’s future energy needs.
He stressed that instability in the industry affected not only companies but also government revenue, employment, host communities and investor confidence.
Osifo called for a stable operating environment, saying government must provide clear policies and regulations, regulators must ensure predictable implementation, operators must maintain investment discipline and safety standards, while labour and host communities should contribute through constructive engagement.
He also called for renewed exploration activity, warning that declining exploration could eventually result in falling reserves and production, with negative consequences for employment and government revenue.
