Komolafe lists gains of energy reforms at global town hall

The Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe has emphasised the need for a paradigm shift to position Nigeria as a leader in energy security and economic growth.

The CCE spoke at the Renewed Hope Global Town Hall Conference in Abuja, on Saturday where he highlighted reforms and achievements in Nigeria’s oil and gas sector.

Speaking on Nigeria’s oil and gas potential and global positioning, he noted that Africa accounts for five of the world’s top oil-producing countries, and Nigeria stands as the continent’s second-largest oil reserve holder and the largest gas reserve holder, with oil reserves estimated at 37.5 billion barrels, while gas reserves stand at 209 trillion cubic feet (TCF).

He added that oil production in Nigeria now averages 1.75 million barrels per day (BOPD), with a gas production rate of 7 billion standard cubic feet per day (SCFD).

On regulatory reforms and achievements, the NUPRC boss stated that since the enactment of the Petroleum Industry Act (PIA) in 2021, the Commission has driven several initiatives to enhance regulatory effectiveness and attract investments. The commission unveiled its 10-year Regulatory and Corporate Strategic Plan (2023–2033) in May 2023, followed by a Regulatory Action Plan for 2024, detailing key industry reforms.

These reforms, according to him, focus on increasing oil and gas reserves and production, enhancing hydrocarbon accounting transparency, achieving cost efficiency and decarbonisation in upstream operations, ensuring stability in host communities, and reducing the carbon footprint of oil and gas activities.

On the 2024 Licensing Round and Investment Drive, Engr. Komolafe highlighted that NUPRC launched its 2024 Licensing Round, offering 24 oil and gas assets to investors. To attract global participation, the commission held roadshows in Houston, Miami, London and Paris, showcasing Nigeria’s energy potential.

During the presentation, he also acknowledged challenges, including oil theft that led to a drastic drop in production to 1.1 million BOPD in 2022. He, however, noted that through kinetic and non-kinetic interventions, oil theft has significantly reduced to 5,000 BOPD, leading to a steady production increase to 1.7 million BOPD.

Looking ahead, he said the government aims to increase production by 1 million BOPD by December 2026 under the Project 1 MMBOPD initiative, leveraging collaboration among operators, service providers, financiers and host communities.

Shedding light on the Nigeria Gas Flare Commercialisation Programme (NGFCP), the CCE assured that the project is at the forefront of the country’s energy transition strategy and aims to eliminate routine gas flaring, reduce methane emissions, and encourage carbon capture technologies. Additionally, the Carbon Credits Earning Framework seeks to monetise decarbonisation efforts while promoting sustainable energy practices.

Giving a brief on revenue growth and financial performance, coupled with industry challenges, he mentioned that NUPRC has consistently exceeded revenue targets. In 2024, the commission outperformed its budgeted revenue collection by 84%, marking a strong financial performance for Nigeria’s upstream sector.

To ensure fiscal transparency, NUPRC has implemented regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems to curb revenue leakages and crude oil theft.

On Host Community Engagement and Regulatory Transparency, the Commission has incorporated 137 Host Community Development Trusts (HCDTs) to foster local participation and stability in oil-producing regions. Furthermore, the Alternative Dispute Resolution Centre (ADRC) has been established to resolve conflicts efficiently, reducing disruptions to oil and gas operations.

In light of all these developments, Engr. Komolafe emphasised that Nigeria is more ready for business than ever, citing the government’s commitment to regulatory certainty, investment-friendly policies, and global competitiveness.

With a stable political environment, a growing gas economy, and a clear roadmap for energy transition, Nigeria positions itself as a prime destination for energy investments in Africa.

He reaffirmed NUPRC’s commitment to collaborating with global investors, financiers, and energy stakeholders to unlock the nation’s full hydrocarbon potential while driving sustainable development.