Regulatory uncertainty threatens oil investments in Nigeria, warns NMDPRA chief

Umar emphasized that while investors are prepared to manage commercial risks, regulatory uncertainty poses a greater challenge. He stressed the importance of clear, consistent, and predictable rules to attract and retain capital, particularly for long-term investments in refineries, pipelines, storage facilities, and gas infrastructure. Umar noted that government efforts like fiscal incentives and policy reforms would be ineffective if investors lack confidence in the regulatory system's operation.

He highlighted that the Petroleum Industry Act provides a strong legal framework based on transparency, competition, and accountability, and the NMDPRA's role is to uphold these principles. Having spent nearly three decades in the downstream petroleum industry, Umar stated he understands investor concerns regarding timely approvals, consistent regulation application, and fair decisions. He added that effective regulation goes beyond issuing licenses and enforcing compliance; it should foster certainty and an environment conducive to business planning and investment growth.

The NMDPRA is enhancing collaboration with other government institutions to ensure a coordinated regulatory environment, as consistent implementation of reforms is crucial for investor con