Nigeria's NMDPRA chief warns regulatory uncertainty threatens oil investment

Rabiu Umar, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has warned that regulatory uncertainty could undermine investments in Nigeria’s petroleum industry.

Umar emphasized that while investors are equipped to manage commercial risks, unpredictable regulatory environments pose a significant challenge. He stated that clear, consistent, and predictable rules are essential for attracting and retaining capital, particularly in the midstream and downstream sectors.

According to the NMDPRA chief, long-term investments in infrastructure such as refineries, pipelines, storage facilities, and gas systems require stability and credibility throughout the life of the assets. He noted that government fiscal incentives and policy reforms may be ineffective if investors lack confidence in how the regulatory system operates in practice.