NUPRC Unveils Strategies to Boost Oil Sector
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has flagged inefficiencies and overlapping regulations as major obstacles to growth in Nigeria’s upstream oil and gas sector.
The challenges are opaque fiscal structures and weak investor confidence. NUPRC Chief Executive, Mr Gbenga Komolafe, outlined these challenges at the Nigerian Association of Petroleum Explorationists (NAPE) golden jubilee lecture on Thursday in Lagos.
Komolafe spoke on: ‘Evolution of Oil and Gas Regulation in Nigeria: Opportunities, Achievements, and Regulatory Strategies for Upstream Resource Optimisation.’ He that lengthy approvals and uncompetitive regulations hinder resource exploitation.
He traced sector development to the Petroleum Act of 1969, which initially provided structure but became outdated over the decades. This, he said, changed with the 2021 Petroleum Industry Act (PIA), which brought new governance, fiscal reforms, and institutional realignment.
According to him, the PIA shifted Nigeria from static regulation to dynamic, investor-focused governance anchored on transparency and global competitiveness.
The Act also created NUPRC as a forward-thinking regulator tasked with positioning Nigeria as a world-class upstream oil and gas jurisdiction.
Komolafe commended NAPE at 50, describing it as a pillar of geoscientific excellence and a vital bridge between academia, government, and the energy sector.
The anniversary theme, ‘NAPE @ 50: Pioneering the Future of Energy in Africa,’ reflects a drive to build a resilient and innovative energy future.
Under his leadership, NUPRC has issued 19 PIA-aligned regulations, matching global standards and fostering a stable environment for investors.
He said the Commission has also launched a Regulatory Action Plan (RAP) within its 2023–2033 Strategic Plan to remove bottlenecks and speed up licensing. The RAP seeks to regain Nigeria’s upstream investment share, which fell from 44 per cent in 2014 to 30 per cent in 2022.
Komolafe noted that NUPRC has integrated data intelligence and digital tools into upstream operations to boost efficiency and investment decisions.
He said the revitalised National Data Repository—Africa’s largest petroleum data bank—offers high-quality geoscientific data, advanced seismic analysis, and improved exploration de-risking.
Recent bid rounds, including the 57 Petroleum Prospecting Licences in 2022 and the 2024 Licensing Round, were marked by transparency and competitiveness. “Fiscal reforms, such as competitive royalties and tax incentives, have further enhanced project viability,” Komolafe added.
Through the Project One Million Barrels Initiative, launched in 2024, Nigeria targets raising output from 1.46 million to 2.5 million barrels per day by 2026.
Current production, he noted, averages between 1.7 million and 1.83 million barrels per day. Security measures include approving 37 new evacuation routes and partnering with security agencies to curb crude theft. The Domestic Crude Supply Obligation policy ensures steady refinery feedstock, strengthening domestic supply chains and resilience.
On development, Komolafe said the Host Community Development Trust, managed via the HostComply platform, promotes transparency and reduces conflicts in host communities. He added that NUPRC’s digital transformation aims to streamline regulation, enhance investor clarity, and deliver smarter, faster oversight. #NUPRC Unveils Strategies to Boost Oil Sector#
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