Oil Sector: ‘Far-Reaching Reforms Coming’ — Eyesan Mohammed Vows Transformational Changes

Nigeria’s oil sector — the backbone of its economy — is on the brink of sweeping reform, according to statements from Dr. Obadiah Eyesan-Mohammed, the Director-General of the Nigeria Extractive Industries Transparency Initiative (NEITI). In comments that have already sent ripples across the industry, Eyesan-Mohammed said the reforms will be far-reaching, aiming to tackle long-standing issues of transparency, inefficiency, and mismanagement in the petroleum value chain.

This announcement comes at a pivotal moment for Nigeria. The global energy landscape is shifting, investments are flowing to renewable technologies, and the country’s fiscal space remains heavily dependent on hydrocarbon revenue. The sector’s performance impacts everything from government budgets to exchange rates, job creation to foreign direct investment.

Why Reform Is Urgent

Nigeria’s oil and gas sector has faced criticism for decades over opaque practices, revenue shortfalls, and structural bottlenecks that have left trillions of naira on the table. Key challenges include:

Revenue leakages due to inconsistent accounting and oversight

Overdependence on crude exports despite under-investment in refining and gas monetisation

Community tensions in the Niger Delta, where many host communities feel left behind

Policy uncertainty, which has scared away foreign investment

A holistic reform agenda, if delivered in earnest, could reverse decades of underperformance and restore confidence among stakeholders.

What Eyesan-Mohammed Has Promised

In a recent press briefing, the NEITI Director-General outlined the focus areas of the planned reforms:

1. Enhanced Transparency & Reporting:

NEITI intends to tighten reporting standards across the value chain — from production and exports to licensing and royalty remittances. This is designed to ensure that citizens know how much revenue is earned and where it goes.

2. Accountability Frameworks:

Eyesan-Mohammed emphasised the need for stronger institutional mechanisms that hold operators, regulators, and government agencies responsible for tracking and managing oil revenues.

3. Strengthened Governance in Licensing:

Unclear or non-competitive contract awards have been perennial issues. The reforms should introduce competitive bidding processes and clearer frameworks for licensing and joint ventures.

4. Community Development & Sustainability:

Host communities, especially in the Niger Delta, have long complained of environmental degradation and marginalisation. NEITI plans to spotlight social and environmental impact reporting as part of its oversight regime.

Potential Impact on the Economy

If implemented effectively, the reforms could:

Boost investor confidence and attract fresh capital into the sector

Improve government revenue streams, reducing dependency on volatile crude prices

Strengthen local capacity and regulatory oversight

Elevate Nigeria’s standing among global energy producers

Conversely, critics warn that reform talk must quickly turn into concrete, enforceable policy. Without meaningful implementation, the sector risks another cycle of unmet promises.

Response from Industry Stakeholders

Oil companies, trade bodies, and economic analysts have cautiously welcomed the announcement, saying that reform momentum is long overdue. Many stakeholders, however, stressed the importance of collaboration between government, private sector operators, and community representatives to ensure reforms are inclusive and effective.

Conclusion

Nigeria’s oil sector reform drive — as articulated by NEITI DG Obadiah Eyesan-Mohammed — signals a potentially transformative chapter for an industry that has long been mired in controversy and underperformance. The success of these reforms, however, hinges on political resolve, institutional capacity, and sustained stakeholder engagement.

As Eyesan-Mohammed has said, far-reaching reforms are coming — but the real test will be whether they deliver real change on the ground.

Source: Vanguard Nigeria — “Oil Sector: Far-Reaching Reforms Coming — Eyesan Mohammed Vows.”