Senate Targets Overhaul of Obsolete Petroleum Laws to Boost Oil Production, Investment
…Eteng says decades-old penalties no longer reflect economic realities, dismisses claims of NNPCL snub
By Pan Afric Reporters
The Senate has commenced moves to overhaul Nigeria’s outdated petroleum laws as part of efforts to strengthen the country’s upstream oil sector, increase crude oil production and create a more investment-friendly regulatory environment.
Chairman of the Senate Committee on Petroleum (Upstream), Senator Williams Eteng, disclosed this while speaking with journalists after a committee meeting at the National Assembly, saying many of the penalties and fines contained in existing petroleum legislation have become obsolete and no longer reflect present-day economic realities.
According to the Cross River Central lawmaker, the committee is prioritising legislative reforms that will modernise the legal framework governing the petroleum industry while supporting infrastructure development and increased oil production.
“We are looking at ways of improving the petroleum sector, strengthening infrastructure, and increasing crude oil production. That is our major focus,” Eteng said.
He revealed that the committee had already received a proposal seeking amendments to the principal petroleum laws, noting that several sanctions currently contained in the legislation were enacted more than six decades ago.
“A presentation has been made for us to amend the principal petroleum laws. The penalties are old and outdated. Some of the fines were enacted in 1951, while others date back to 1962. There is a need to bring these laws in line with present-day realities,” he stated.
The senator stressed that periodic review of legislation remains essential to ensure that laws continue to address contemporary economic and industry challenges.
“Laws are made to serve society, and they must be amended from time to time to reflect current economic realities,” he added.
Eteng also dismissed reports suggesting that the Nigerian National Petroleum Company Limited (NNPCL) disrespected the committee by sending a junior officer to its meeting.
He clarified that the official seen during the session was the company’s liaison officer to the National Assembly and not a representative appearing on behalf of NNPCL management.
“There was no junior officer representing NNPCL before the committee. The person you saw is the liaison officer between the National Assembly and NNPCL. Please get that right. NNPCL requested an excuse, and another date will be fixed,” he explained.
The committee chairman reaffirmed the Senate’s commitment to engaging stakeholders in the ongoing legislative review, expressing confidence that the proposed amendments would strengthen regulatory efficiency, attract greater investment and position Nigeria’s petroleum industry for sustainable growth.
