Regulatory issues threaten oil investment, others, says PENGASSAN

Regulatory uncertainty, overlapping mandates, and lengthy approval processes pose significant threats to investment and production growth in Nigeria's oil and gas industry, according to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

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Investors need clear rules not alterations. Operators need predictability. Workers need protection. Host communities need confidence, while governments need sustainable revenues.

PENGASSAN President Festus Osifo stated at the fifth PENGASSAN Energy and Labour Summit in Abuja that investors require regulatory certainty for long-term commitments in the capital-intensive petroleum sector. While the Petroleum Industry Act of 2021 was a major reform step, subsequent changes and the use of executive orders have created uncertainty.

Osifo also raised concerns about redundant approvals, multiple inspections, and conflicting directives from various regulatory agencies. He stressed that "Investors need clear rules not alterations. Operators need predictability. Workers need protection. Host communities need confidence, while governments need sustainable revenues."

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What we require is not weak regulations. What we need is smarter regulations; regulations that understand commercial realities, embrace technology and eliminate unnecessary duplication.

To attract capital, PENGASSAN urged the government to streamline approval processes and leverage technology for efficiency while maintaining oversight. The association also demanded enhanced protection for workers affected by industry acquisitions and restructurings, ensuring that job security, pensions, and collective bargaining agreements are preserved.

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Capital is mobile and investors will naturally gravitate towards jurisdictions where there is clarity and efficiency. Our processes must therefore be clear and our systems efficient.