• Demonstrating resilience amid energy transition challenges
Tayo Busayo, Abuja
DAILY COURIER - The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a significant 49% revenue surplus, surpassing its set target, despite global oil and gas market pressures. This achievement highlights the NUPRC's effective regulatory strategies, which have enabled it to not only maintain revenue streams but also attract substantial investments into Nigeria's upstream oil and gas sector.
This impressive revenue performance was revealed at the National Assembly's (NASS) public interactive hearing on the 2025–2027 Medium Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP). As of October 2024, the commission’s revenue had far exceeded its expected figures, contributing more funds to the government’s coffers to help address fiscal deficits.
The NUPRC's performance is particularly remarkable given the current global challenges facing the oil and gas industry. Hydrocarbon producers worldwide have been grappling with declining royalties and weakened profit margins amid the global push for energy transition. Despite these headwinds, the NUPRC has succeeded in leveraging regulation to block revenue leakages and attract massive investments into the country’s upstream sector.
Founded under the Petroleum Industry Act (PIA) of 2021, the NUPRC is tasked with overseeing the regulation of Nigeria’s upstream petroleum activities. The commission, headed by Engr. Gbenga Komolafe, has consistently exceeded its revenue targets since its inception, demonstrating strong leadership and a forward-thinking approach to the industry’s challenges.
Under Komolafe's leadership, the NUPRC has implemented several initiatives that have contributed significantly to its revenue success. Notably, the "One Million Barrels Per Day" initiative, launched in October 2024, aims to boost Nigeria’s daily oil production to over 2.7 million barrels per day, a critical target for the nation’s oil sector. This ambitious plan is part of a broader strategy to revitalize the country’s oil production capabilities despite challenges such as the divestment of some oil and gas assets by international players.
The NUPRC’s commitment to maximizing revenues is further reflected in its "Drill or Drop" initiative, which mandates oil producers to drill a well within a specified time frame or forfeit their license to operate in a given area. This has created a sense of urgency among producers to either commit to development or lose their rights to key oil blocks, thus ensuring that valuable resources are not left untapped.
Komolafe has also spearheaded efforts to attract foreign investment into Nigeria’s oil sector. In May 2024, he led the launch of an oil block bid round at the Offshore Technology Conference (OTC) in Houston, Texas, USA. The bid round has already garnered interest from major global players, including TotalEnergies, signaling renewed confidence in Nigeria’s oil sector despite the global energy transition narrative.
“We are committed to serving the nation effectively and transparently,” Komolafe said during an interview. He emphasized the NUPRC's role in ensuring transparency within the oil and gas sector, noting that a lack of transparency would send the wrong message to the international community and deter investment.
He further added, “We are not just recovering revenue through royalties; we are fulfilling our statutory mandate to create an environment of checks and balances, ensuring accountability and transparency in the management of Nigeria’s oil resources.”
The NUPRC’s success in surpassing its revenue target comes at a critical juncture, as Nigeria faces both domestic fiscal pressures and global shifts in the energy landscape. The commission's continued focus on regulating the upstream sector, blocking revenue leakages, and driving investments through initiatives like the One Million Barrels Per Day and Drill or Drop schemes positions it well for future success.
Komolafe’s leadership has instilled confidence in the regulatory process, signaling to both domestic and international investors that Nigeria remains a competitive and attractive destination for oil and gas investment. As the NUPRC continues to implement its initiatives and further refine its regulatory framework, the potential for even greater revenue growth remains high, which will further benefit Nigeria’s fiscal health and its long-term economic development.
In a time when many oil producers globally are struggling, the NUPRC’s ability to deliver results underscores the importance of strong, transparent governance in achieving sustainable growth, even amidst the global push for energy transition.
