Nigeria Urged to Legalize Oil Reforms for Investment

Oil executives have urged Nigeria to legalize its oil reforms to retain deepwater investments, warning that failure to do so could lead to a loss of competitiveness against other West African nations. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is perceived as lacking appeal to major oil companies, who prioritize deep and ultra-deep offshore acreage with clear fiscal terms.

Executives highlighted that Nigeria's historical dominance in sub-Saharan Africa is eroding, with countries like Côte d'Ivoire, Angola, and Ghana offering better incentives for investment. They noted that the current regulatory environment, characterized by multiple agencies with misaligned missions, hampers project progress.

However, credit was given to Olu Verheijen, Special Advisor on Energy, for driving reforms through executive orders. Despite recent reforms, there are concerns that these orders lack legal status, which could deter investment.

The need for legislative action to solidify these reforms is critical, especially with upcoming elections potentially affecting the investment climate.