The enactment of the Petroleum Industry Act (PIA) and the series of reforms have positioned Nigeria’s upstream oil and gas sector for energy security, sustainability, and economic, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe has said.
Speaking on the topic “Positioning Nigeria’s Upstream Oil & Gas for Energy Security, Sustainability and Economic Resilience” at the 24th Nigerian Oil & Gas Energy Week Conference & Exhibition 2025 in Abuja on Wednesday, Komolafe said since the enactment of the PIA 2021, which laid the foundation for reforms, the industry is undergoing significant transformation.
The approval of the 2024 Executive Orders #40 on fiscal incentives; #41 on local content, and #42 on cost efficiency and contract timelines, he said has resulted in massive investment inflows.
He since in just two years of the PIA, the industry committed over $16bn on investments to grow industry capacity.
Through the Project One Million Barrels initiative, the Commission Chief Executive said the industry is scaling up Nigeria’s oil and gas production reviving dormant fields, accelerating of contract approvals, and enhancing upstream industry efficiencies.
Since the initiative was launched in 2024, targeted at increasing daily oil production from 1.46 million barrels to 2.5 million barrels by 2026, the industry has so far achieved over 1.7 million bpd.
Apart from the approval of 37 new oil evacuation routes, Komolafe said the Commission was working closely with security agencies to curb the menace of crude oil theft and boosting accountability.
Also, he said the Commission’s drive on Domestic Crude Supply Obligation was guaranteeing feedstock for local refineries, strengthening domestic supply chains and economic resilience.
Besides, he said the HostComply platform has brought transparency, real and measurable benefits to oil-producing communities, while fostering peace and social license for the companies to operate.
He said the full-scale digitisation of the Commission’s operations was transforming its mandate in the area of regulatory oversight, delivering speed, efficiency, and clarity to investors.
While oil and gas remain Nigeria’s economic mainstay, contributing nearly 90% of foreign exchange earnings and 70% of national revenue, he said the Commission was determined to entrench climate responsibility at the core of industry operations, in line with Nigeria’s pledge to achieve net-zero emissions by 2060.
On gas development, he said the Commission’s gas-centric transition strategy, supported by initiatives like the Decade of Gas, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative, were all aimed at realising the agenda to eliminate routine flaring by 2030, reduce methane by 60% by 2031, and monetize the country’s vast gas reserves, and create thousands of green jobs in the process.
In addition, he said Nigeria was building its LNG capacity, deploying floating infrastructure, and leading cross-border pipeline development to fuel not only its economy, but also Africa’s industrial renaissance.
In addition, he said Nigeria’s Upstream Decarbonisation Framework has integrated emissions tracking, MRV systems, carbon capture, and climate finance access through carbon markets, which are opportunities for investment, innovation, and inclusive growth.
On a regional scale, Komolafe said the NUPRC was leading efforts to integrate Africa’s energy markets through Africa Petroleum Regulators Forum (AFRIPERF) aimed at achieving regulatory convergence, cross-border financing, and infrastructure interoperability.
Going forward, he said the NUPRC was focused on deepening upstream investment, accelerating reserve development, scaling up production, and enhancing domestic energy security and sustainable growth.
Apart from sustaining transparent, competitive licensing rounds under the Continuous Acreage Licensing Framework, he said the Commission would accelerate frontier basin exploration and derisking, while fast-tracking the reactivation of shut-in assets.
The Commission plans to drive the 1MMBPD initiative through aggressive rig deployment, asset reactivation, streamlined approvals processes, and enhanced recovery techniques, while expanding evacuation infrastructure to protect production, deployment of the Advance Cargo Declaration System to curb theft and improve transparency in export and ensure reliable feedstock supply to domestic refineries.
He warned that the Commission would not tolerate any producer that undermines the national climate-action programme, saying appropriate regulatory actions would be taken against producers who failed to execute agreements after several engagements.
“Our resolve remains firm. We will not relent until the NGFCP is fully and successfully implemented,” he said.
