Consistency and transparency have emerged as central demands from stakeholders in Nigeria’s oil and gas sector, as concerns grow that the positive impact of current regulatory reforms may fall short without clear and sustained execution by the government.
Industry players, while acknowledging the potential of the reforms to transform the sector, warned that policy inconsistency and opaque processes could undermine investor confidence and stall progress. They argue that genuine change hinges not just on the design of new regulations but on their faithful, timely, and transparent enforcement.
These views were articulated at the public presentation of the "2025 Investor Perceptions of Nigeria’s Regulatory and Policy Reforms in the Oil and Gas Sector Survey" held in Lagos. The survey was a collaborative effort between Arbiterz Conferences and Good Governance Africa (GGA).
Dr Abimbola Agboluaje, Founder of Arbiterz Conferences, underscored that current investor sentiment is significantly shaped not only by the structure of the present reforms but also by the lingering impact of past policy inconsistencies and setbacks.
"In future editions of the survey, respondents’ perceptions will increasingly be determined by the tangible outcomes of the Petroleum Industry Act and the Presidential Executive Orders—specifically, how effectively these reforms are implemented and the extent to which they drive genuine investment into the sector," Dr Agboluaje stated.
While the survey findings indicated that Nigeria's reforms have provided a certain degree of clarity, including more streamlined licensing procedures and improved engagement between regulatory bodies and private sector players, stakeholders stressed that this is merely the foundation.
Dr Ola Bello, Executive Director of Good Governance Africa, highlighted the critical role of data-driven dialogue in reshaping Nigeria's investment narrative. He argued that establishing Nigeria as a credible destination for energy investment requires more than just legal frameworks; it necessitates building institutional trust, ensuring market predictability, and maintaining policy continuity over time.
"Nigeria’s economic diplomacy should place greater emphasis on engaging our domestic private sector to drive growth in oil and gas, while also attracting key international investors," Dr Bello advised.
Stanley Fagbule, Managing Director of SellyFak Energy, urged that investor sentiment should be viewed not simply as feedback but as a clear call to action. He asserted that Nigeria's energy sector stands at a critical juncture.
"Nigeria’s comparative advantages, its vast hydrocarbon reserves and recent policy shifts would only translate into tangible outcomes if supported by functional institutions and effective regulatory practices," Fagbule emphasized. "The announcement of reforms is not enough. The message from investors is clear—they are watching for implementation, consistency, and transparency."
Dr Ogho Okiti, Managing Director of Africa Business Convention, pointed to the slow pace of implementation and the fragmented nature of regulatory oversight as persistent and significant obstacles hindering the transformation of the sector.
He stressed the vital importance of aligning oil and gas policy with broader national development objectives to bolster investor confidence, particularly within the gas sector, which holds substantial potential. However, Dr Okiti cautioned against an excessive focus on macroeconomic adjustments, arguing that sustainable development also demands coordinated policy execution, targeted incentives, and strategic infrastructure investment.
"To attract serious investment, we must align oil and gas reforms with national goals, resolve foreign exchange constraints, and move beyond macro fixes to stimulate real sector growth—especially in gas," he asserted.
Dr Ayodele Oni, a legal expert and partner at Bloomfield LP, underscored the fundamental need for certainty, robust enforcement mechanisms, and unwavering institutional integrity. While acknowledging that reforms like the Petroleum Industry Act (PIA) represent a positive step forward, he argued that their success hinges on decisive execution and a dependable judicial and regulatory framework.
"Investors seek certainty and clarity. Without these, investment will not flow. It is essential that the right people are in the right positions to implement policies effectively, and that regulatory bodies and the judiciary collaborate to provide a stable investment environment," Dr Oni stated.
Toyin Akinosho, Publisher of Africa Oil & Gas Report, acknowledged that the sector is showing initial signs of progress, but this progress is not yet substantial enough to inspire strong and widespread confidence among investors.
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| Publisher, Africa Oil & Gas Report, Mr. Toyin Akinosho (left); Managing Director, SellyFak Energy, Mr. Stanley Fagbule; Tax Partner & Regulatory, Deloitte, Mrs. Asiata Agboluaje; Managing Director, Africa Business Convention, Dr. Ogho Okiti, Partner, Bloomfield LP, Dr. Ayodele Oni, and Chief Operating Officer, Arbiterz Media, Mr. Dotun Ajiboye, at the public presentation of a new survey titled “Investor Perceptions of Nigeria’s Regulatory and Policy Reforms in the Oil & Gas Sector”, held recently at the Radisson Blu Hotel, Victoria Island, Lagos. |
He noted that while the reforms are a welcome development, over half of the investors surveyed rated Nigeria’s progress as only "somewhat positive."
Akinosho further pointed out that when compared to other emerging markets such as Qatar, Nigeria still needs to demonstrate a greater degree of consistency in implementation. He emphasized that investors in exploration and production (E&P) are looking for tangible action and results, not merely policy pronouncements.
"Investors want to see movement, not just momentum. Nigeria has compelling stories to tell, especially in gas, but we need to tell them boldly and back them with consistent action," Akinosho concluded.
The collective voice of these stakeholders underscores a crucial message for the Nigerian government: while the articulation of regulatory reforms is a necessary first step, their ultimate success in attracting significant and sustainable investment in the oil and gas sector hinges on a steadfast commitment to consistent, transparent, and effective implementation. The global investment community is watching closely for tangible outcomes that match the policy pronouncements.