The Senate Committee on Upstream Petroleum has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to impose appropriate sanctions on international oil companies (IOCs) that have continued to disregard provisions of the Petroleum Industry Act (PIA). The committee expressed concern that certain operators in the oil and gas sector have allegedly failed to comply with the reforms and directives introduced by the landmark legislation, which was enacted to strengthen transparency, accountability, and efficiency in Nigeria’s petroleum industry.
During a recent oversight engagement with NUPRC officials, lawmakers emphasized that no oil firm, regardless of its size or international standing, should be allowed to undermine Nigeria’s regulatory framework. The committee maintained that the PIA was specifically designed to address the inefficiencies that plagued the sector for decades, and warned that any breach of its provisions posed a serious threat to the nation’s economic stability.
The senators urged the commission to demonstrate firmness by ensuring that erring companies face penalties, insisting that selective compliance or disregard for established regulations would weaken the effectiveness of the PIA. They stressed that effective enforcement would not only compel compliance but also reassure Nigerians and investors that the government was committed to safeguarding the integrity of the country’s oil and gas industry.
Committee members also raised concerns about revenue leakages linked to the activities of some IOCs, noting that strict enforcement of the PIA would help Nigeria maximize its earnings from the petroleum sector. They reminded the NUPRC that the National Assembly was keenly monitoring implementation of the law, as it remains a critical tool for boosting national revenue, attracting investment, and ensuring fairness for host communities.
In response, NUPRC officials assured the lawmakers that the commission was taking necessary steps to compel compliance across the industry. They disclosed that several engagements had been held with operators to sensitize them on their obligations under the PIA, adding that penalties were being considered for those who continue to fall short of expectations.
The commission further pledged to strengthen its monitoring mechanisms, stating that enforcement would be carried out in line with the law without fear or favor. It also reaffirmed its commitment to promoting transparency and efficiency in the upstream sector as part of efforts to reposition the industry for sustainable growth.
With the oil and gas sector still central to Nigeria’s economy, both the Senate and the NUPRC stressed that the success of the PIA would be measured by strict adherence to its provisions. They insisted that compliance by all operators was non-negotiable, as the law represents a critical step toward restructuring the industry and ensuring that petroleum resources truly benefit Nigerians.
