All Progressives Congress (APC) Stalwart, Mobolaji Adeyeye, has thrown his weight behind the federal government’s plan to strip the Nigerian National Petroleum Company (NNPC) of control over existing oil contracts and hand the authority to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
The proposed amendment to the 2021 Petroleum Industry Act (PIA) would transfer responsibility for managing joint ventures and production-sharing agreements from the state oil company to the regulator. Federal Government insists the change is necessary to plug “statutory leakages and opaque deductions” that have drained the Federation’s Account for years.
Mobolaji Adeyeye, reacting to the draft on Saturday, said Nigeria’s dire fiscal situation and persistent underperformance in oil production make such bold reform necessary.
“Nigeria is pumping well below its OPEC quota, not because we lack reserves but because theft, sabotage, and chronic underinvestment have crippled output. If moving contract authority to the regulator helps close revenue gaps and restore investor confidence, then it is a step in the right direction,” Mobolaji Adeyeye argued.
Nigeria’s oil sector has faced mounting pressure. Daily production has consistently fallen short of the 1.8 million barrels per day OPEC quota, depriving the treasury of billions of dollars in potential income. At the same time, the country has relied heavily on imported fuel despite the restart of the Warri refinery and the gradual ramp-up of the Dangote facility.
Mobolaji Adeyeye acknowledged that fears of conflict of interest around the regulator acting as both umpire and player were valid, but insisted the priority must be safeguarding revenue flows and stabilising production.
“The risks are clear, but Nigeria’s bigger risk is continuing with a broken system that bleeds money. What we need now is stronger oversight and transparency around whichever institution holds the pen,” he said.
The APC member noted that the amendment, if well implemented, could help Federal Government move closer to meeting its OPEC commitments while channelling more oil income into schools, hospitals, and infrastructure.
“At the end of the day, this is about trust. Nigerians must see their oil wealth translate into tangible development. That is the standard by which we should judge this reform,” Mobolaji Adeyeye added.
The amendment has yet to be formally tabled before lawmakers, but its passage would mark the most significant overhaul of Nigeria’s oil governance since the PIA was signed into law in 2021.
