By Abiodun Folarin
WorldStage— The Independent Petroleum Producers Group (IPPG) has commended President Bola Ahmed Tinubu’s administration for implementing reforms that have revived Nigeria’s oil and gas industry, while urging the Federal Government to review the Petroleum Industry Act (PIA), remove regulatory bottlenecks and accelerate strategic infrastructure investments to sustain growth.
Speaking at the opening ceremony of the 25th NOG Energy Week in Abuja on Tuesday, IPPG Chairman, Adegbite Falade, said the administration’s policy reforms had helped reverse years of declining crude oil production and restore investor confidence in the upstream sector.
According to him, Nigeria’s crude oil production has rebounded from below one million barrels per day (bpd) a few years ago to an average of 1.6 million bpd between January and May 2026.
Falade also noted that the country has secured more than $8 billion in upstream Final Investment Decisions (FIDs) since 2023, citing major projects such as Shell’s Bonga North and TotalEnergies’ Ubeta developments.
He said Nigeria’s share of Africa’s total upstream FIDs had increased significantly from about four per cent a decade ago to nearly 40 per cent over the past two years.
While applauding the progress, Falade warned that Nigeria could lose future opportunities if it failed to expand critical energy infrastructure and production capacity.
He noted that delays in Final Investment Decisions and inadequate production capacity prevented the country from fully benefiting from heightened global energy demand triggered by recent geopolitical crises in Europe and the Middle East.
“The lesson from both crises is the same the next geopolitical shock is not a question of if, but when,” he said.
Falade urged the government to emulate the long-term investment approach demonstrated by the Dangote Refinery by prioritising strategic infrastructure capable of strengthening Nigeria’s energy security.
“We must see infrastructure not just as an economic asset, but as a strategic national shield,” he added.
The IPPG chairman also called on the Federal Government to eliminate overlapping fees and levies imposed by multiple regulatory agencies, arguing that the growing fiscal burden threatens the viability of independent producers operating mature oil assets with relatively thin margins.
He further identified an emerging manpower shortage resulting from the divestment of international oil companies (IOCs) and the retirement of experienced industry professionals as a major threat to the sector’s long-term sustainability.
According to him, aggressive investment in human capital development has become essential for the industry’s survival.
“It is not corporate social responsibility; it is at the very core of business survival,” he said.
Falade also advocated deeper investments across Nigeria’s gas value chain, urging stakeholders to move beyond crude oil exports toward integrated midstream and downstream gas-based industrial development.
He called for a comprehensive review of the Petroleum Industry Act five years after its enactment to reflect current industry realities and improve its implementation.
According to him, the review should incorporate the Presidential Directives and Executive Orders issued since the law came into force, providing greater certainty for investors and operators.
“This provides an opportunity to address the practical and commercial realities of the PIA and strengthen the Act by codifying into law the Presidential Directives and Executive Orders,” Falade said.
He reaffirmed the commitment of IPPG member companies to partner with the Federal Government in advancing Nigeria’s energy transformation and unlocking the full potential of the country’s oil and gas resources.
