A joint committee in the House of Representatives is close to finalising the Petroleum Industry Bill that aims to rewrite Nigeria's decades-old relationship with Royal Dutch Shell, Exxon Mobil and other oil companies.
The oil reform bill has been delayed repeatedly because of constitutional concerns and disputes between government and foreign oil firms over the fiscal terms for their operations.
The Senate is also finalising its own bill, which would need to be harmonized with the lower house's version before being sent to the president so it can be signed into law.
The legislation aims to break state oil firm NNPC, long hampered by funding shortfalls, into profit-driven units able to tap international markets. The move could prompt some of the biggest financing deals of their kind ever done in Africa.
The government would also be allowed to renegotiate old contracts, impose higher costs on oil companies and retake acreage that firms have yet to explore.
But foreign oil companies operating in Nigeria have warned the plans contained in the bill could threaten billions of dollars of investment if they go ahead in their current form.
The main areas of dispute between government and oil firms include higher royalty payments, industry-wide taxes on profits and revenue sharing.
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