PIA: Abbas demands accountability from NNPC

The Speaker of the House of Representatives, Tajudeen Abbas, has called for stronger corporate accountability and effective legislative oversight of the Nigerian National Petroleum Company Limited, warning that its commercial autonomy must be matched with responsibility.

Abbas said the success of the Petroleum Industry Act, enacted in 2021 to reform Nigeria’s oil and gas sector, would depend not merely on its legal provisions but on the effectiveness of its implementation and the tangible benefits it delivers to Nigerians.

The Speaker, who was represented by the House Leader, Julius Ihonvbere, spoke on Monday at the opening of a three-day retreat on ‘Petroleum Industry Act Implementation: The PIA, Corporate Governance and Legislative Oversight’ in Abuja.

The retreat was organised by NNPCL, in collaboration with the Office of the Speaker.

Describing the PIA as one of Nigeria’s most consequential economic laws, Abbas said it was designed to establish a more transparent, commercially viable, accountable and investment-friendly petroleum industry.

He, however, noted that five years after its enactment, stakeholders must assess the extent to which the promises of the legislation had translated into practical results.

He said, “Five years down the line, the central question is how much of that promise we have translated into practice.”

The Speaker said the Act’s provisions, including the transformation of the corporation into NNPC Ltd, the establishment of regulatory institutions and the introduction of a framework for host community development, were intended to address longstanding challenges in the sector.

However, he emphasised that “the passage of a reform law is not the same as the successful implementation of that reform.”

According to him, the transition of NNPCL into a commercially-oriented company was expected to improve operational efficiency, attract investment and create greater value from Nigeria’s petroleum resources.

“But commercial autonomy must be accompanied by corporate accountability. The freedom to make commercial decisions must go hand in hand with responsibility for their consequences,” he said.

Abbas said the government, management and legislature had distinct but complementary responsibilities in the management of state-owned commercial enterprises.

He explained that the government, as shareholder, must protect the public interest, while management should retain the professional independence to make commercial decisions and accept responsibility for performance.

The legislature, he added, must ensure that national assets remain subject to constitutional and statutory accountability.

“The legislature’s responsibility is not to substitute parliamentary judgment for management decisions or interfere arbitrarily in legitimate commercial operations. It is to ensure that statutory mandates are respected, governance obligations are fulfilled, public resources are protected, and the institutions established by law deliver on their responsibilities,” Abbas added.

He stressed that effective oversight should strengthen governance without undermining operational efficiency, adding that it must go beyond retrospective investigations to promote institutional learning, early intervention and improved performance.

The Speaker said the 10th House had sustained its engagement with the petroleum industry through retreats, committee activities and investigations.

He recalled that the House held a two-day retreat in April 2024 on economic transformation and development, with emphasis on the implementation of the PIA and tax reforms.

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He also cited engagements by the House Committee on Petroleum Resources (Midstream) in Port Harcourt and Lagos in June 2026, which examined operational challenges, regulatory performance, domestic gas utilisation and the protection of critical energy infrastructure.

Abbas said the House had continued to investigate crude oil theft, scrutinise pipeline surveillance arrangements and pursue measures to strengthen the security of petroleum infrastructure.

“We recognise that the protection of national petroleum assets is not merely an industry concern; it is an economic and national security imperative,” he stressed.

He identified production constraints, crude oil theft, pipeline vandalism, infrastructure deficiencies, investment uncertainty and regulatory bottlenecks as some of the major challenges confronting the sector.

The Speaker also called for adequate crude oil supplies to domestic refineries without undermining the commercial viability of upstream operations.

On Nigeria’s gas resources, Abbas said unlocking their potential required sustained investment in infrastructure, appropriate commercial arrangements and regulatory certainty.

“These challenges cannot be addressed by legislation alone. They demand consistent implementation, institutional coordination, credible regulatory enforcement and investor confidence,” he said.

The Speaker urged participants to examine whether NNPC Ltd’s corporate structure was delivering the transparency, efficiency and commercial discipline envisaged by the PIA, while identifying governance gaps requiring legislative or institutional attention, among others.

The Speaker said the PIA’s success should be measured by increased production, greater investment, improved energy security, stronger domestic refining, enhanced revenue generation, employment opportunities and tangible benefits to Nigerians, particularly communities hosting petroleum operations.

“Ultimately, the petroleum industry must work for the Nigerian people. That is the larger public purpose that must guide our collective efforts,” he said.

Abbas reaffirmed the commitment of the National Assembly to supporting the economic reforms of President Bola Ahmed Tinubu’s administration through legislation, constructive engagement and rigorous oversight.

He said the lasting legacy of the PIA would be determined not by its enactment, but by the extent to which it transformed the petroleum industry, unlocked the value of Nigeria’s natural resources and improved the lives of citizens.

The Chairman, House of Representatives Public Accounts Committee, Bamidele Salam, has called for a review of the implementation of the PIA, five years after its enactment, to identify gaps and improve its effectiveness.

In his goodwill message, Salam said the assessment should go beyond the oil and gas sector to examine how effectively the important legislation had been implemented.

Also speaking, the representative of the Chairman, House Committee on Petroleum Resources (Midstream), Lanre Okunlola, said the transformation of NNPC Ltd must be measured by tangible improvements in the sector.

Okunlola said the PIA was designed to improve corporate governance, attract investment, increase private sector participation, enhance operational efficiency and promote the development of host communities.

Also, the Chief Executive Officer of 3 Streams Synergy Ltd, Doyin Adelabu, called for stronger institutional collaboration and accountability to ensure that the Petroleum Industry Act delivers its intended benefits to Nigerians.