“IT IS NO LONGER BUSINESS AS USUAL” – Engr Gbenga Komolafe.
The Chief Commission Executive (CCE) of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), delivered this strong message at the 50th Anniversary celebration of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
Speaking on the theme “Evolution of Oil and Gas Regulation in Nigeria: Opportunities, Achievements and Regulatory Strategies for Upstream Resource Optimization,” Komolafe acknowledged NAPE’s five-decade contribution as the intellectual powerhouse of Nigeria’s energy sector, bridging academia, industry, and government.
But the heart of his remarks was about change and future direction.
From Old Laws to a New Era
For over 50 years, Nigeria’s petroleum industry was governed by the 1969 Petroleum Act—a framework that eventually stifled growth with inefficiencies, overlapping rules, and waning investor confidence. The game-changer, Komolafe noted, was the Petroleum Industry Act (PIA) of 2021, which ushered in fiscal reforms, transparency, and investor-focused policies. The PIA also birthed the NUPRC, tasked with repositioning Nigeria as a globally competitive upstream destination.
Reforms and Results
Since its inception, NUPRC has:
- Issued 19 new regulations, benchmarked against global best practices.
- Unveiled a Regulatory Action Plan (RAP) aligned with its 10-Year Strategic Plan, targeting bottlenecks and improving licensing rounds.
- Leveraged data-driven innovation through the revitalized National Data Repository (NDR), now Africa’s largest digital petroleum data hub.
These reforms are paying off. Nigeria’s licensing rounds (2022–2024) recorded unprecedented transparency, competitiveness, and investor engagement. Rig counts have surged from just 8 in 2021 to 43 today, with a projection of 50 before year-end.
Driving Production & Security
Through the Project One Million Barrels Initiative, NUPRC is working to boost crude output from 1.46 million barrels per day (bpd) to 2.5 million bpd by 2026. Dormant fields are being revived, approvals fast-tracked, and new evacuation routes opened. These measures, alongside tighter security collaboration, are already reducing crude theft and strengthening accountability.
On the domestic front, enforcing the Domestic Crude Supply Obligation (DCSO) ensures steady feedstock for local refineries, securing energy resilience.
Gas, Transition & Net-Zero
With 210.54 trillion cubic feet of natural gas (Africa’s largest reserves), Komolafe stressed that gas is central to Nigeria’s energy transition strategy. Initiatives like the Decade of Gas, the NGFCP, and the Presidential CNG Initiative aim to cut methane emissions by 60% by 2031 and end routine gas flaring by 2030.
Meanwhile, the Upstream Decarbonisation Framework integrates emissions monitoring, carbon capture, and climate finance access—turning sustainability into a new investment frontier.
Unlocking Opportunities
Komolafe emphasized that Nigeria’s upstream landscape is now primed for:
- Frontier basin exploration (onshore, shallow, and deep offshore).
- Gas-to-power projects, LNG, FLNG, and CNG infrastructure.
- Green investments in decarbonisation technologies and renewables.
- Competitive incentives—zero hydrocarbon tax on select projects, attractive royalty regimes, and investor-tailored fiscal reforms.
Looking Ahead
Komolafe acknowledged lingering challenges—like infrastructure deficits and global transition pressures—but stressed that collaboration, innovation, and sound strategy can overcome them.
“As hydrocarbons remain our revenue backbone, we must align growth with climate responsibility,” he said. “Our forward agenda is clear: deepen exploration, expand infrastructure, enforce transparency, and enable energy transition while driving prosperity for Nigerians.”
As NAPE celebrates 50 years, the takeaway is clear: Nigeria’s upstream industry is standing at a critical inflection point—anchored on reform, powered by innovation, and open for investment.
