Nigeria Mulls Shifting Oil Contract Control to Regulator in Major Industry Shake-Up
Amendment to Petroleum Industry Act could transfer authority from NNPC to regulator in bid to boost transparency and revenue.
Nigeria is considering amending its landmark 2021 Petroleum Industry Act (PIA) to transfer control of existing oil contracts from the Nigerian National Petroleum Company (NNPC) to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
The proposal, outlined in a letter by Attorney General Lateef Fagbemi, argues that “statutory leakages and opaque deductions under the current PIA framework” have deprived the Federation of significant oil revenues.
Under current law, the NNPC oversees Nigeria’s commercial oil contracts, but the amendment would hand this role to the regulator.
While supporters say the move could increase revenue transparency, critics warn it risks blurring the line between regulation and commercial participation, potentially creating conflicts of interest.
Oil revenues remain crucial to Nigeria’s public finances, making the outcome of this debate critical for the economy.
Source: Reuters
