NUPRC: Strengthening Regulatory Implementation To Broaden Nigeria’s Oil & Gas Opportunity

Available data shows that Nigeria’s oil and gas industry had faced a plethora of challenges, ranging from low investor confidence, dwindling crude oil production worsened by theft and pipeline sabotage, absence of Final Investment Decisions (FIDs) on major projects, the slump of industry annual spends to less than $6 billion in 2021, from a high of over $27 billion in 2014, among many other teething issues.

These were daunting challenges that the NUPRC faced.

However, through its new metering initiative and the Project 1 Million Barrels Incremental Production, Nigeria’s crude oil production has grown to 1.7 million bpd including crude and condensate.

The Project 1 Million Barrels activity saw production growing by additional 250,000 barrels per day.

Similarly, exploration has intensified, leading to new discoveries by some of the operators and further rising of the country’s hydrocarbon reserves.

In the area of managing divestments in the oil and gas industry, NUPRC has discharged its responsibilities creditably, leading to the peaceful and successful conclusion of five major divestment deals in the last few years.

Functioning with high professional standards and in sync with the demands of a 21st Century regulator, the Nigerian Upstream Petroleum Regulatory Commission has reshaped the country’s energy frontier pushing forward the government’s energy mix and energy security initiatives.

This has earned the agency  accolades from stakeholders within and outside the nation’s oil and gas exploration and production sector owing to its sterling performance that has set the industry on the path of consistent growth, transparency, efficiency, and a renewed investor confidence. Only a survey with confusing conclusions and unanswered questions believes otherwise.

A survey is an intellectual exercise that is meant to reveal information, laden with data, which will be useful to the society. Part of the goals of a survey is to solve a problem, and by this, it behoves on the person or entity conducting the survey to be as clear, transparent, fair, impartial, and credible as possible. It is expected that ambiguous, confusing, and over-generalised conclusions be avoided.

A 2025 Investor Perception Survey conducted by Arbiterz Conferences was released to the media last month. As reported in news, the survey highlighted among other things, notable progress in the Nigerian oil and gas industry. It listed some of the progress as, clearer licensing procedures, more active engagement between regulators and private sector stakeholders, and a cautious but growing optimism around Nigeria’s gas agenda.

The survey attributed the progress to two major reforms in the industry – namely the Petroleum Industry Act (PIA) 2021, and the

Presidential Executive Orders – introduced by President Bola Tinubu, pointing out that the reforms garnered over 75 per cent positive rating among stakeholders.

However, the survey, as expressed by some industry stakeholders, appeared to have veered off the point, perhaps, out of ulterior motive or due to a lack of understanding of the role of a regulator in the eyes of the law when it asserted that systemic issues such as inconsistent policy implementation, ‘weak regulatory capacity,’ and entrenched bureaucratic inefficiencies have continued to cloud optimism and investor confidence initially sparked by two major reforms in Nigeria’s oil industry.

Titled, “Investor Perceptions of Nigeria’s Regulatory and Policy Reforms in the Oil and Gas Sector,” the survey, according to the promoters, provides a unified and urgent message to the Nigerian government and its oil and gas regulators on the need for consistent execution and confidence-building.

The promoters, suspected by some knowledgeable industry stakeholders to have a hidden agenda against the regulatory authorities in the nation’s oil and gas industry, went ahead claiming that the “survey captures a nuanced industry outlook: cautious optimism driven by recent reforms, such as PIA and Executive Orders, tempered by continued concern over implementation delays, regulatory inefficiencies, and persistent structural challenges”.

Perhaps not paying attention to the efforts being made by the NUPRC and its internationally-recognised high performing chief executive officer, Gbenga Komolafe as well as the results being seen and felt by industry players over the past three years of the commission’s existence, the survey agents further alleged that concerns about inconsistent policy implementation persisted.

The report also claimed that the concerns reinforced the need for government and regulatory agencies to focus on steady, transparent execution in order to consolidate recent gains, sustain investor optimism, and build lasting confidence in the industry.

But to every open-minded industry stakeholder and analyst that is knowledgeable about the essence and role of a regulator, there are a couple of salient questions the survey and its promoters failed to answer to prove its credibility and genuineness.

For instance, as argued by some some stakeholders, when the survey mentioned weak regulatory capacity, despite tangible gains being recorded in the oil and gas industry, partly attributable to the regulator’s actions and directions, is it suggesting that the regulator should act outside the law for it to be seen to have capacity? Is the survey suggesting that the era of discretion be brought back so as to speed up processes and serve a certain selfish interest against national interest and against the extant legal provisions?

The industry stakeholders, who picked holes in the report of the survey, argued that it unfortunately failed to flag out any aspect of the law that the regulator failed to implement or that it implemented wrongly.

“Has the regulator not put regulations in place to guide the operations of the industry for clarity, for certainty, for attraction of investments? Are the regulations kept under the table? No. All the regulations are in the portal”, an industry stakeholder queried.

 

“How were the regulations made? Were they made in line with the provisions of the law, which is that there must be public hearing, stakeholders engagements? Yes, they were done. The problem here is either the survey promoters are being mischievous or they don’t understand what is the role of the regulator.

 

“The NUPRC has been implementing every aspect of the law that it is supposed to implement. If anything is wrong in the law, then they should call the law to question”, the stakeholders further queried.

 

For the record, before the establishment of the NUPRC and the assumption of office of its pioneer chief executive, Komolafe, the Nigerian oil and gas industry, particularly the upstream segment was gasping for breath and looking for the needed reforms, regulatory initiatives and directions to rescue and rebound it.

 

Upon his assumption of office in October 2021, Komolafe began the process of rebuilding the confidence of the industry with several regulatory initiatives churned out and gazetted. He galvanised all relevant industry stakeholders to ensure that the government’s plan of growing the industry was achieved.

 

Owing to enabling regulatory frameworks put in place by the NUPRC, the industry is now witnessing a renewed investor confidence with investors returning to the industry. At the moment, the upstream industry has attracted multibillion dollar worth of investment since 2021 till date. A couple of big projects have achieved FIDs in the last few years, including the Shell’s Iseni Gas project, TotalEnergies’ $550 million Ubeta gas project as well as the $5 billion Bonga North project being promoted by Shell Nigeria Exploration and Production Company Limited (SNEPCo). This couldn’t have happened if there was weak regulatory capacity in the industry as claimed by the survey.

 

The agency prioritised key issues relating to the divestment deals including financial and technical capacity of the successor companies, their ability to optimise the assets, their capacity to fulfill their obligations to host communities among others. It also held the existing companies to also commit to their abandonment and decommissioning obligations to avert environment hazards.

 

In the area of licensing, NUPRC has turned things around and has departed from the past when bid rounds were conducted in controversial manner, with no transparency and credibility, resulting in a barrage of complaints and litigations following every award process. The first licensing round conducted by NUPRC under the PIA regime has been described by stakeholders as the first of its kind in the history of the oil and gas industry in Nigeria. At the commercial bid conference held in December 2024, where winners emerged, the commission deployed modern technology and innovative approach in the process and ensured open participation of relevant stakeholders and the media throughout the process.

 

Relatedly, in keeping with the dictates of the law, the commission has begun the implementation of the Drill or Drop provision in the PIA to ensure that idle blocks are taken away from the holders and put back into the basket for auctioning. With this, the regulator intends to conduct bid rounds every year to further keep the industry active and ensure seriousness on the part of license holders.

 

In terms of bridging the funding gap in the Nigerian oil and gas industry, NUPRC is also cooperating and collaborating with the Africa Petroleum Producers Organization (APPO) and the Afreximbank to ensure the realisation of the Africa Energy Bank. The $5 billion bank is intended to help energy companies in Africa to be able to carry out oil and gas development projects and optimise the continent’s huge hydrocarbon reserves still undeveloped.

 

All these are happening because a competent, capable, efficient and forward-thinking regulator is in charge of the Nigerian upstream petroleum sector. This explains why NUPRC and its chief executive officer are being recognised and celebrated by reputable organizations locally and internationally.

 

 

Awards for Proven Regulatory Capacity

 

In recognition of its sterling performance in engineering the upstream sector toward growth through efficient and result-oriented regulatory guidelines and interventions, the Commission has been receiving a flurry of awards from reputable local and international organizations who have been watching the regulator’s activities. This is indeed a testament to the capacity and impact of the Komolafe-led agency, which has now emerged as Africa’s best regulatory agency.

 

For instance, the Africa International Chambers has just nominated NUPRC for the Africa Development Awards 2025 slated for May 24, 2025, in Manchester, United Kingdom.

 

In a notification letter sent to the commission, dated March 10,2025, signed by the Chairman, World Economic Development Foundation/Joint Awards Screening Committee, the chamber said NUPRC’s nomination was for the Best Performing Government Agency Award at the Africa Development Awards 2025, a prestigious recognition of outstanding leadership, innovation, and impact in Africa’s development landscape.

 

“The distinguished nomination recognizes NUPRC ‘s exceptional dedication to advancing the development of the upstream sector in Nigeria. These remarkable efforts have played a pivotal role in shaping public service delivery, fostering economic growth, and advancing global partnerships that drive Africa’s development agenda.

 

Describing the award as a legacy of excellence and impact, the chamber said with a sterling performance over the years, NUPRC has demonstrated impressive capabilities and strategic foresight in navigating complex upstream operational challenges and delivering meaningful, sustainable solutions whilst improving the revenue base for national development.

 

“Under your leadership, the Commission has achieved exceptional efficiency, innovation, and impact in delivering services, fostering development and achieving organisational goals”, the letter read.

 

The chamber said the dedication of the Commission to excellence, innovation, and social impact has set a benchmark on the African continent, and this award recognises these efforts.

 

“We would be truly honoured to celebrate your achievements at this distinguished event…

 

“Congratulations once again on this prestigious nomination. Your dedication to service continues to inspire, and we look forward to honouring your remarkable contributions at the Africa Development Awards 2025 in Manchester”.

 

Similarly, NUPRC has been recognised as a leading force in Africa’s energy sector, earning a nomination for the ‘Regulator of the Year Award’ at the upcoming 29th Africa Energies Summit.

 

The summit, now in its 29th edition, will be held on May 15 in London, bringing together top industry players, policymakers and innovators shaping Africa’s energy future, a statement from the company said.

 

NUPRC’s nomination under the Rhino Award category underscores its significant strides in transforming Nigeria’s upstream petroleum landscape through innovation, transparency and effective regulation.

 

The Commission’s chief executive, Komolafe, is also a strong contender for the Elephant Award, which honours distinguished individual contributions to Africa’s energy sector.

 

Komolafe, who has led NUPRC since its establishment in 2021, has received multiple accolades for his leadership, including the ThisDay/Arise Group CEO of the Year Award and the Sun Public Service Award, recognising his strategic reforms and commitment to Nigeria’s energy development.

 

As Nigeria continues to advance its energy sector through regulatory excellence, innovation and strategic reforms, NUPRC’s nomination highlights its pivotal role in shaping Africa’s energy future. The Summit’s awards will serve as a platform to honor these trailblazers and reinforce Nigeria’s position as a continental energy leader.

 

The nominees for the Rhino Award (Africa’s NOC/Regulator of the Year) include: NUPRC; Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire (PETROCI); Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG); Agência Nacional de Petróleo de São Tomé e Príncipe (ANP-STP) and SMH (Mauritania) & PETROSEN (Senegal) – Greater Tortue Ahmeyim First Oil.