Market News

BY Abubakar Ibrahim 

A new survey of energy sector investors has shown cautious optimism about Nigeria’s recent oil and gas reforms but stressed the need for consistent policy execution to sustain confidence.

The findings titled Investor Perceptions of Nigeria’s Regulatory and Policy Reforms in the Oil and Gas Sector highlight support for measures such as the Petroleum Industry Act (PIA) and efforts to attract foreign investment.

However, industry leaders warn that delays in implementation, regulatory uncertainties, and security challenges in the Niger Delta could undermine progress.

While the Petroleum Industry Act (PIA) and recent Executive Orders have sparked cautious optimism and increased investor interest – with over 75 percent of respondents rating the reforms positively – systemic issues continue to cloud investor confidence. Chief among these are inconsistent policy implementation, weak regulatory capacity, and entrenched bureaucratic inefficiencies.

Abimbola Agboluaje, founder of Arbiterz Conferences, noted that “respondents’ perceptions are shaped as much by their historical experiences with past reform efforts in the sector as they are by the current design and implementation progress of the Petroleum Industry Act and the Presidential Executive Orders. In future editions of the survey, respondents’ perceptions will increasingly be influenced by the tangible outcomes of the Petroleum Industry Act and the Presidential Executive Orders—specifically, how effectively these reforms are being implemented and the extent to which they are driving real investment into the sector”.

The survey findings highlight notable progress—such as clearer licensing procedures, more active engagement between regulators and private sector stakeholders, and a cautious but growing optimism around Nigeria’s gas agenda. However, concerns about inconsistent policy implementation persist, reinforcing the need for government and regulatory agencies to focus on steady, transparent execution in order to consolidate recent gains, sustain investor optimism, and build lasting confidence in the sector.

Delivering the welcome address on behalf of the survey’s conveners, Ola Bello, executive director of Good Governance Africa, emphasised the role of data-driven policy dialogue in repositioning Nigeria as a credible investment destination.

“Looking ahead to the September event, I think today’s conversation sets a good basis for advancing these discussions. Nigeria’s economic diplomacy should focus more on engaging our domestic private sector to drive growth in oil and gas, while also attracting key international investors,” he said.

In his remark. Stanley Fagbule, managing director of SellyFak Energy, urged stakeholders to treat the survey findings not merely as feedback but as a call to action. Reflecting on the evolving policy landscape, he acknowledged the positive momentum driven by the Petroleum Industry Act and recent Executive Orders, while cautioning that investor optimism remains tempered by concerns over regulatory delivery.

He called for a decisive shift from reform design to implementation, noting that licensing, approvals, and inter-agency coordination must be streamlined to standards that are globally competitive.

“We are standing at a crossroads,” Fagbule said. “The message from investors is clear: they want transparency, continuity, and credible enforcement. The announcement of critical reforms suggests commitment and that is progress, but this is not enough—we must now deliver. Let us take this survey as both a challenge and an opportunity to build a more attractive, transparent, and prosperous oil and gas sector for Nigeria.”

A panel discussion featuring three prominent energy experts provided additional depth to the conversation. Ogho Okiti, managing director of Africa Business Convention, noted that while reform progress in Nigeria’s oil and gas sector is evident, the slow pace of implementation and fragmented inter-agency coordination remain key concerns.

He emphasized that aligning oil and gas policy with national development goals is essential to boost investor confidence, especially in the gas sector, which holds immense potential. However, he cautioned that there is too much focus on macroeconomic issues, arguing that no economy develops on the basis of macro alone.

Ayodele Oni, partner at Bloomfield LP, stressed the importance of certainty, clarity, and the enforcement of rights for investors, noting that these factors are crucial to attracting investment in Nigeria’s oil and gas sector.

He emphasised that effective reforms depend on having the right people in place to implement policies and laws.

Oni also highlighted the need for better coordination among regulatory bodies and a more transparent judiciary to ensure that policy changes are consistently and fairly enforced. “Investors seek certainty and clarity. Without these, investment will not flow. It’s crucial that the right people are in the right places to implement policies effectively, and that regulatory bodies and the judiciary work together to provide a stable environment for investment.”

Toyin Akinosho, publisher of Africa Oil & Gas Report, emphasized that while reforms in Nigeria’s oil and gas sector are welcome, stakeholders are cautiously optimistic, with over half rating the progress only “somewhat positive.” Compared to emerging markets like Qatar, Nigeria still needs to prove consistency in implementation.