Two weeks ago, Oliver Quinn, chief executive officer of international oil company Meren Energy, said Nigeria’s recent reforms have strengthened investor confidence, prompting the company to expand its investments after committing about $11 billion to the country’s oil sector over the past two decades. His remarks reflect a new trend in the country’s petroleum sector where new regulatory frameworks are beginning to deliver on their promise of a more predictable and attractive business environment.
One of the most notable reforms came in March, when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reduced the processing time for revitalising dormant oil wells from several weeks to just a few hours. This move is aimed at capitalising on crashing global energy prices which have reached an astronomical $100 per barrel.
Previously, completing the paperwork to revive an oil well took between two and six weeks, an administrative constraint that has historically prevented the industry from supplying larger volumes of oil to the global economy.
Beyond this, the government has pursued a broader deregulation agenda across the sector. Key reforms include updates to the Nigerian Upstream Petroleum Measurements Regulations, the Regulations on Significant Crude Oil and Gas Discoveries, and the Gas Flaring Regulations, alongside the introduction of the Financial Approval Threshold and the Reduction of Petroleum Sector policy.
To further ease doing business in the sector, the Presidential Directive on Petroleum Sector Reform (2024) streamlined government contract approvals for the petroleum industry. Under the Financial Approval Threshold, section 2 and its equivalent subsection of the provision stated that Nigerian National Petroleum Company and Nigerian Upstream Investment Management is mandated to simplify the contract approval process at each stage from pre-qualification, technical, commercial and final approval stages. The regulation stipulated 15 days as the timeline for approval of contracts from the date of submission, making the process smoother and faster.
As these policy changes were introduced, it was not long for the benefit to roll in too. In April, the industry secured a $10 million investment commitment within the oil and gas sector, thanks to the new regulatory frameworks. Oritsemeyiwa Eyesan, the chief executive of NUPRC, said these predictable regulatory environments reduced investment risks and supported partners to take a multi-billion-dollar final investment decision. Analysts suggest that the commission’s free-market approach to reduce bureaucratic burden drives long-term success and positions the economy for steady development.
While improving the supply chain, Domestic Gas Delivery Regulations further strengthened obligations for the domestic gas market. The commission stated that this aspect of the regulation governs the limitations of production and the use of petroleum in line with the rules guiding the export and domestic supply of crude oil.
Simultaneously, the Regulations on Significant Crude Oil and Gas Discoveries protect and encourage the full use of oil and gas assets. Investors with licences may explore the oil and gas they discover to increase productivity. The commission said “these regulations ensure that licensees retain areas of substantial crude oil and gas discoveries for a specified period, as outlined in section 78 of the Act, allowing for proper exploration and development of these valuable resources.”
Before these new policies, the industry faltered in its attempt to enhance investment capital. Aside from oil theft and vandalism, a low level of investment interest remained the sector’s greatest challenge. In 2025, Nigeria’s daily oil production fell to 1.58 million barrels. However, production improved under the new policy in 2026. The industry reported that crude oil production increased to 1.84 million barrels per day, an over 40 percent rise that demonstrates significant growth in output.
Wale Edun, the former Nigerian Finance Minister, acknowledged the sector’s progress and urged industry leadership to set a future benchmark of two million barrels per day. Highlighting the impact of the new policy, the commission noted that the gazetted regulations offer essential regulatory certainty to the petroleum industry.
