The Nigerian Gas Association (NGA), has opined that a predictable fiscal and regulatory environment are ingredients essential to de-risking investments and accelerating project delivery in the oil and gas sector.

This was detailed in a statement released by NGA at the end of its maiden Legal Forum emphasised that investor confidence will be shaped by the robustness of commercial and contractual structures across the gas value chain, strengthened contractual clarity, and efficient dispute resolution mechanisms.

In his opening address, President of the NGA, Aka Nwokedi, underscored the urgency of aligning Nigeria’s legal architecture with its strategic gas ambitions, noting that the sector’s next phase of growth will be defined by the strength, clarity, and credibility of its regulatory environment.

“Nigeria’s gas resources present a defining opportunity for economic transformation, but realising this potential will depend on building a legal framework that is transparent, predictable, and globally competitive”, he stated.

Discussions throughout the Forum reflected a clear and consistent theme: that Nigeria’s opportunity now lies in execution.

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While the Petroleum Industry Act (PIA) has established a transformative foundation for sector reform, participants emphasised that its true impact will be determined by disciplined implementation, regulatory coherence, and institutional alignment.

The need to eliminate ambiguity and strengthen enforcement emerged as central to unlocking sustained investment.

As global energy systems continue to evolve, the Forum reinforced natural gas as Nigeria’s most strategic lever for balancing economic growth, energy security, and emissions reduction. Participants highlighted that legal and regulatory frameworks must evolve accordingly, moving beyond policy intent to embed clear, enforceable standards on carbon management, ESG obligations, and sustainability.

“In an increasingly competitive global market, such clarity will be critical in attracting long-term capital.”

The Forum also acknowledged the policy direction of the administration of President Bola Ahmed Tinubu in advancing gas development through infrastructure expansion and increased domestic utilisation.

Stakeholders noted that sustained policy stability will serve as a critical signal to both domestic and international investors evaluating long-term opportunities in Nigeria’s gas sector.

Beyond its technical depth, the NGA Legal Forum marked an important step in bridging the longstanding gap between legal frameworks and industry realities, creating a structured platform for continuous engagement, practical alignment, and forward-looking policy development.

The International Energy Agency (IEA) is of the view that the current Middle East crisis has destabilised global oil markets.

It pointed out that the ugly incident has cut demand expectations and triggered what it described as the most severe supply shock in history.

This was set out in its latest Oil Market Report, in which it asserted that the global oil demand is now projected to contract by 80,000 barrels per day in 2026, a sharp reversal from last month’s forecast growth of 730,000 bpd.

It added that a projected 1.5 million barrels per day drop in Q2 2026 would mark the steepest quarterly decline since the COVID-19 pandemic.

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According to the IEA, early demand destruction is already visible in the Middle East and Asia-Pacific, where consumption of naphtha, LPG and jet fuel has fallen sharply. It attributed this to rising prices, scarcity of supplies, and weakening industrial and aviation activity.

It pointed out that on the supply side, global oil output plunged by 10.1 mbpd in March to 97 mbpd, as continued attacks on energy infrastructure and restrictions in the Strait of Hormuz disrupted exports. OPEC+ production reportedly fell by 9.4 mbpd, while non-OPEC supply also weakened despite gains in the United States and Brazil.

The crisis, it was learnt, has also hit refining operations, with global crude throughputs constrained by feedstock shortages and damaged infrastructure. The IEA said refineries in the Middle East and Asia reportedly cut runs by around six mbpd, while global crude processing is now expected to decline by one mbpd on average in 2026.

Prices have also surged to historic levels, with Brent crude trading around $100 per barrel and physical crude briefly touching $150 per barrel, as refiners scramble for alternative supplies. Middle distillates in Asia reached record highs above $290 per barrel, reflecting extreme tightness in product markets, according to the report.

Inventories were said to have fallen sharply, with global observed stocks dropping by 85 million barrels in March. The IEA said supply routes through the Strait of Hormuz have been severely disrupted, cutting flows from over 20 mbpd before the conflict to about 3.8 mbpd.

While some exports have been rerouted through Saudi Arabia, the UAE, and Iraq–Türkiye pipelines, these alternatives have not offset losses exceeding 13 mbpd, the agency said, adding that floating storage has increased in the Middle East as stranded cargoes build up offshore.

The IEA stressed that restoring full flows through the Strait of Hormuz remains the most critical factor in stabilising global energy markets, warning that prolonged disruption could deepen the supply shock, worsen inflationary pressures, and further weaken global oil demand.

An oil sector advocacy group has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for stabilising the aviation fuel market, noting that its recent intervention helped ease tensions across the aviation sector and averted potential disruptions to flight operations.

This was detailed in a statement on Tuesday under the signature of the centre’s Executive Director, Tunde Adeyemi.
It averred that the regulator’s clarification on fuel availability and pricing came at a critical time, when uncertainty over Jet A1 costs had heightened anxiety among airline operators and other stakeholders.

Adeyemi noted that confirmation of over 70 days’ aviation fuel sufficiency reflects a strong supply position and underscores the resilience of Nigeria’s downstream petroleum framework.

Adeyemi said the regulator’s data-driven disclosure helped counter widespread speculation, including claims of a potential spike in aviation fuel prices that had raised fears of flight disruptions and higher airfares.

“The timely intervention by the Authority provided much-needed clarity and helped calm frayed nerves within the aviation ecosystem. At a time when misinformation could have escalated into a crisis, the regulator chose transparency and facts, which is commendable,” he said.

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He added that aviation fuel remains a major cost driver for airlines in Nigeria, making stability in supply and pricing critical to the sector’s sustainability.

According to him, the Authority’s emphasis on the deregulated nature of the Jet A1 market is key to shaping realistic expectations, as pricing is influenced by global oil trends, foreign exchange fluctuations, and logistics costs.

“It is important for stakeholders to understand that aviation fuel pricing is market-driven. What the regulator has done is provide clarity that supports informed decision-making,” he said.

The group also highlighted the growing role of domestic refining in moderating fuel prices, noting that locally refined aviation fuel is being sold slightly below international benchmarks — an indication of improving local capacity.

It urged stakeholders across the aviation fuel value chain to avoid spreading unverified claims capable of distorting market realities or undermining confidence in the sector.

“Responsible engagement is critical. All parties must work together to sustain stability and ensure that recent gains are not reversed by panic or misinformation,” Adeyemi added.