Expert Advocates Increased Synergy Between FG, Regulatory Agencies in Oil and Gas Sector
There is an urgent need for increased synergy and cooperation in Nigeria’s energy, oil, and gas sector to improve productivity and ramp up investments across the value chain. Gloria Iroegbunam, General Manager, Legal and Company Secretary at LEKOIL Nigeria Limited, emphasized this point, noting that Executive Orders would have significant positive implications if all actors were aligned.
“The petroleum industry is the backbone of the Nigerian economy, drawing substantial offshore and domestic investments. However, regulatory bureaucracy often hampers smooth operations and investment flows. Overlapping responsibilities among regulatory agencies create an intricate web of administrative hurdles. The Nigerian government’s efforts to streamline these processes through Executive Orders are commendable, but their practical efficacy warrants deeper examination,” Iroegbunam stated in her piece titled Practical Efficacy of Executive Orders in the Nigerian Petroleum Industry.
Iroegbunam urged the government to eliminate legal boundaries and regulatory constraints. She noted, “Executive Orders are directives from the President to manage operations within the federal government. However, their scope is limited when attempting to override or alter statutory regulations. In Nigeria, many regulatory processes in the petroleum industry are backed by laws enacted by the National Assembly.”
Highlighting the need for collaboration between the government and regulatory bodies, she added, “A fundamental aspect of implementing Executive Orders lies in their legal standing. For Executive Orders to achieve their intended purpose, especially in the petroleum industry, there must be candid collaboration between the government and regulatory bodies. Engaging regulators in drafting and implementation can preempt conflicts with existing statutory mandates, enhancing the orders’ effectiveness.”
Iroegbunam stressed that the dynamic nature of the petroleum industry, along with changing market conditions and evolving technology, requires a widened stakeholder engagement framework to reduce regulatory overlaps, align structures, and improve operations.
“The Nigerian government’s use of Executive Orders to streamline regulatory processes in the petroleum industry is a step in the right direction. However, the practical efficacy of these orders hinges on their alignment with statutory regulations and the active collaboration of regulatory agencies. By reducing regulatory overlaps, developing flexible governance frameworks, and engaging stakeholders, the government can create a more efficient and investor-friendly environment. Ultimately, these efforts will enhance the attractiveness of the Nigerian petroleum industry and contribute to broader economic development,” she concluded.
