Business
Oil Experts Fault Multiple Regulation Regime …Call For Reform
Experts in the oil and gas industry have faulted the current multiple regulatory system in the industry, describing it as confusing and exploitative.
They called for a single one-shop regulation, to drive efficiency in the industry.
The experts comprising chief executive officers of the Nigerian National Petroleum Corporation (NNPC), Total E&P, Shell Petroleum Development Company (SPDC) and Mobil among others, argued that the present multiple regulation regime in the nation’s oil and gas industry was severely impeding the growth of the industry.
They described the current practice whereby several regulatory agencies are involved in overlapping functions in the industry as confusing.
They maintained that single regulatory system and consistency would help advance the industry and boost its global competitiveness.
Speaking at the just concluded Nigeria Oil and Gas Conference and Exhibition in Abuja on Wednesday, the Group Managing Director, NNPC, Maikanti Baru, represented by the Chief Operating Officer, NNPC Upstream, Alhaji Bello Rabiu, said there were tendencies for conflicts in having more than one regulatory agency in the oil and gas industry, stressing that having a single regulator would make the industry more efficient.
Speaking in the same vein, the Managing Director, Total Exploration and Production, Nicolas Teras, represented by the Executive Director, Total Upstream, Patrick Olinma, argued that multiple taxation, billings, and having nine to 10 bodies regulating the oil and gas sector puts the multinationals at a cost disadvantage.
Teras also called for a reform in the oil and gas industry, given the confusing signals emanating from laws that regulate the industry.
According to him, “there is really a lot to do as regards clarity. We have looked at how many times we have tried to reform the industry, at least three times, but we have not yet got an industry reform law.”
However, in a swift reaction, the Executive Secretary of the Nigerian Content Development Monetary Board,(NCDMB), Simbi Wabote, explained that the multiple regulatory agencies in the oil and gas industry was due to lack of transparency in the industry.
He said, “There would not have been any need to regulate local content, if things were done properly by the companies”
“If something happens and government is not told the truth or given the right figures , then government in its wisdom will set up a body to regulate that aspect”.
Continuing, Wabote said, “If you take away transparency, you cannot avoid regulatory bodies because government does not trust the oil operators including the IOCs. As you want to maximise profit, government also would want to ensure that you do not milk the country dry and run away. There has to be trust. You have to earn the trust of the government and demonstrate that you have good intention for the country to help it develop.”
On his part, the Managing Director, Shell Nigeria Exploration and Production Company Limited, (SNEPCo), Mr Bayo Ojulari, called for the removal of those he described as ‘bad actors’ in the industry whose activities, according to him, constitute impediment to the growth of the industry.
In response, the NCDMB boss, blamed the IOCs for introducing the ‘bad actors’, saying the NCDMB as a regulatory body does not select contractors for the oil companies.
According to him: “NCMB does not select contractors for any company. We do not create bidders’ list, it is the companies that create the ‘bad actors’ by introducing contractors who do not have anything on ground in the country. Some do not even have offices here, what they have as office is ordinary container, and when there is a problem, they run away”.
Boye Salau
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
