Nigeria’s oil and gas sector is experiencing a resurgence, driven by a combination of policy reforms, infrastructure development, and a renewed focus on security. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has implemented a multi-pronged strategy to boost crude oil production, curb theft, and attract investment. A key element of this strategy is the approval of 37 new crude oil evacuation routes, designed in collaboration with security agencies to enhance the secure transportation of crude oil and improve accountability. This initiative has already yielded positive results, with Nigeria’s oil production rising from 1.46 million barrels per day (bpd) to 1.7 million bpd, and a target of 2.5 million bpd set for 2026. The increasing rig count, from a low of 8 in 2020 to the current 44, further underscores the positive momentum in the sector.
The revitalization of the oil and gas sector is attributed to the implementation of the Petroleum Industry Act (PIA) and a series of executive orders issued by President Bola Tinubu. These orders, focusing on fiscal incentives, local content, and cost efficiency in contracting, have created a more attractive investment environment, resulting in over $16 billion in new investments in just two years. The NUPRC is prioritizing not only increased production but also domestic energy security. The Domestic Crude Supply Obligation initiative aims to ensure a consistent supply of crude oil to local refineries, reducing reliance on imported refined products and bolstering the downstream value chain. This initiative is crucial for strengthening Nigeria’s energy independence and economic resilience.
Beyond physical infrastructure and policy changes, the NUPRC is also embracing digital transformation. By implementing comprehensive digitization across its operations, the Commission aims to streamline regulatory processes, enhance transparency, and improve investor confidence. The digital platforms being developed are designed to be data-driven and responsive, providing investors with greater clarity and efficiency. This commitment to modernization signals a shift towards a more efficient and investor-friendly regulatory environment. Furthermore, the NUPRC is demonstrating a commitment to social responsibility through its HostComply platform, a digital tool designed to monitor and ensure compliance with host community obligations.
The HostComply platform represents a significant step towards fostering peace, building trust, and securing the social license to operate within oil-producing communities. By promoting transparency and accountability in the management of community development projects, the NUPRC aims to mitigate potential conflicts and ensure that the benefits of oil and gas activities are shared equitably with local communities. This proactive approach to community engagement is vital for sustainable development and long-term stability in the oil and gas sector.
The NUPRC has also placed a strong emphasis on environmental responsibility and Nigeria’s commitment to achieving net-zero emissions by 2060. The Commission has taken a firm stance against gas flaring, warning operators that non-compliance with the Nigerian Gas Flare Commercialisation Programme will result in strict sanctions. Regulatory action has already been taken against producers who have failed to meet flare capture deadlines, demonstrating the NUPRC’s commitment to enforcing environmental regulations. The Commission is also encouraging the development of operational flare capture projects, aiming to showcase tangible progress towards its climate ambitions by the next NOG conference.
The overarching message from the NUPRC is one of optimism and opportunity. The Commission is positioning Nigeria as a key player in the global energy transition, emphasizing the country’s pragmatic and equitable approach to achieving a sustainable energy future. By implementing bold reforms, fostering a transparent and efficient regulatory environment, and prioritizing both domestic energy security and environmental responsibility, the NUPRC aims to attract significant investment and unlock the full potential of Nigeria’s oil and gas resources. The Commission’s focus is on deepening upstream investment, accelerating reserve development, scaling up production, and enhancing domestic energy security and sustainable growth. This includes transparent and competitive licensing rounds, frontier basin exploration, reactivation of shut-in assets, and expansion of evacuation infrastructure. The implementation of the Advanced Cargo Declaration System further aims to curb oil theft and improve transparency in the export process.
