Five years after PIA, Reps demand tangible benefits for Nigerians

The House of Representatives has urged the Nigerian National Petroleum Company Limited (NNPC Ltd) to translate the Petroleum Industry Act (PIA) into increased oil production, greater investment and tangible economic benefits for Nigerians.

It said the success of the five-year-old legislation must reflect in improved energy security, stronger domestic refining, higher revenue generation and employment opportunities.

The Speaker of the House, Tajudeen Abbas, made the call on Monday at a retreat on PIA implementation, corporate governance and legislative oversight, organised by NNPC Ltd in collaboration with the Office of the Speaker in Abuja.

Abbas, represented by the Majority Leader, Julius Ihonvbere, said the anniversary of the legislation provided an opportunity to assess how much of its promises had translated into practical results.

“Ultimately, the success of the PIA must be measured beyond institutional restructuring and corporate performance indicators. It must be reflected in increased production, greater investment, improved energy security, stronger domestic refining, enhanced revenue generation, employment opportunities and tangible benefits for Nigerians,” he said.

The Speaker described the PIA as one of the most significant economic legislations in Nigeria’s recent history, designed to transform the structure, governance and commercial direction of the petroleum industry.

The Act, signed by former President Muhammadu Buhari on August 16, 2021, followed nearly two decades of efforts to reform the sector.

It introduced a new regulatory and fiscal framework, provided for the commercialisation of the Nigerian National Petroleum Corporation and established a framework for host community development.

It also provided for the creation of separate regulatory institutions for the upstream, and midstream and downstream sectors.

Abbas, however, said the passage of the law was not enough to guarantee the success of the reforms, stressing that effective implementation, transparency and institutional accountability remained essential.

He said NNPC Ltd’s transition into a commercially oriented company was intended to improve efficiency, attract investment, strengthen partnerships and maximise returns from Nigeria’s petroleum resources.

“The freedom to make commercial decisions must go hand in hand with responsibility for their consequences,” the Speaker noted.

Abbas said the National Assembly’s responsibility was to ensure that NNPC Ltd complied with its statutory obligations and managed national assets in the public interest.

He cautioned against turning legislative oversight into interference in the company’s daily operations, saying scrutiny should improve governance without undermining commercial efficiency.

“Effective oversight should promote better governance, not undermine operational efficiency,” he said.

The Speaker identified crude oil theft, pipeline vandalism, production constraints, infrastructure deficiencies, investment uncertainty and regulatory bottlenecks as challenges requiring urgent attention.

He also stressed the need to optimise domestic refining capacity and ensure adequate crude oil supplies to local refineries without compromising the commercial viability of upstream operations.

Earlier, the Chairman of the House Committee on Public Accounts, Bamidele Salam, described the PIA as one of the most important reform laws passed by the ninth National Assembly.

Salam said the legislation had remained stalled across successive assemblies before its eventual passage under the leadership of former Speaker Femi Gbajabiamila.

He said the fifth anniversary of its implementation offered an opportunity to assess its achievements, identify shortcomings and determine whether amendments were necessary.

Salam also urged Nigeria to prepare for changes in the global energy market, particularly the growing transition towards cleaner and renewable energy.

He called for the adoption of best practices from successful petroleum-producing countries, including Saudi Arabia, the United Arab Emirates and Qatar.

In her welcome remarks, the Chief Executive Officer of 3 Streams Synergy Limited, Doyin Adelabu, said the summit was designed to evaluate NNPC Ltd’s transformation under the PIA and strengthen collaboration between the legislature and industry stakeholders.

She said discussions would focus on corporate governance, accountability and legislative oversight, with contributions from former presidential adviser on petroleum resources, Dr Nuhu Habib, and Professor Ernest Uchenna Ereke.