- The Petroleum Industry Act (PIA) and new Executive Orders drive record investment in Nigeria’s oil and gas sector.
- Sweeping reforms improve transparency, competitiveness, and sustainable growth across the energy value chain.
Nigeria’s energy reforms have earned global recognition as the Ministry of Petroleum Resources wins the Reformer of the Year award at the African Energy Week: Invest in African Energies 2025 conference. The award celebrates the Ministry’s effort to transform the oil and gas industry through bold and consistent reforms.
The Petroleum Industry Act (PIA) 2021, supported by several Executive Orders, forms the foundation of these achievements. One of them, the Upstream Petroleum Operations (Cost Efficiency Incentives) Order, was signed earlier this year. Since the PIA’s enactment, Nigeria has adopted a proactive strategy to attract investors and increase capital inflows.
The PIA restructured the Nigerian National Petroleum Company into a commercially focused enterprise and introduced a transparent, investor-friendly regulatory framework. The Act also created a fair fiscal regime, improved licensing systems, and established the Host Community Development Fund to ensure nearby communities benefit directly from energy projects.
Since its implementation, the PIA has attracted over $17 billion in foreign direct investment. This reflects renewed global confidence in Nigeria’s energy policy direction. The Federal Government continues intensifying reforms to boost competitiveness and fast-track stalled projects.
In April 2025, President Bola Ahmed Tinubu signed the Executive Order on Oil and Gas Sector Reform to improve fiscal efficiency and operational performance. The Order introduced a performance-based tax credit system that rewards measurable cost reductions and faster project delivery.
These policies aim to lift oil production above two million barrels daily while expanding gas monetisation and infrastructure development. Significant projects include the $10 billion Nigeria–Morocco Gas Pipeline, the AKK pipeline, and new deepwater investments from local and international operators.
According to NJ Ayuk, Executive Chairman of the African Energy Chamber, the Ministry’s leadership promotes transparency, competitiveness, and sustainability. These actions unlock billions in investment while ensuring energy growth benefits the Nigerian people.