Taofeek Lawal, Author at Tribune Online

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced significant progress in attracting investments in Nigeria’s upstream oil and gas sector, as showcased at the recent Nigeria-China Sustainable Bilateral Business, Trade, and Investment Summit, which was held in Lagos during the week. This landmark event brought together top government officials, investors, business leaders and key stakeholders to reaffirm shared vision of enhancing energy security, accessibility, affordability, sustainability and economic viability as core elements of national growth and social prosperity. The Commission Chief Executive (CCE) NUPRC, Engr. Gbenga Komolafe in his speech stated that under the leadership of President Bola Ahmed Tinubu, transformative reforms have reshaped Nigeria’s oil and gas sector, improving operational efficiency and global competitiveness. These reforms, he added, have significantly reduced contracting cycles from 36 months to just six months, unlocked strategic tax incentives for deepwater and frontier basin projects, and eliminated fiscal bottlenecks, resulting in over $16 billion in upstream investment commitments between 2023 and 2025. He noted that major global energy companies, including Shell, TotalEnergies and Seplat, along with dynamic indigenous operators, have renewed and expanded their participation in Nigeria’s energy sector. Nigeria’s extensive hydrocarbon resources, which include 210.54 trillion cubic feet of natural gas, the largest in Africa and 37.28 billion barrels of crude oil reserves, position the country as a prime destination for energy investment. Current production levels are approximately 1.75 million barrels of oil per day and seven billion standard cubic feet of gas per day, with ambitious goals to increase production to three million barrels of oil and 12 billion standard cubic feet of gas per day, respectively. According to Komolafe, the Petroleum Industry Act (PIA) of 2021 has been crucial in establishing a clear, stable and investor-friendly regulatory framework. The NUPRC has implemented the Act by issuing 19 regulations and overseeing licensing, permits and compliance with a focus on transparency and efficiency. Licensing rounds are conducted through open, competitive bidding processes, supported by digital tools and real-time operational monitoring to facilitate ease of doing business and bolster investor confidence. Nigeria is also dedicated to sustainable energy development through initiatives such as the Decade of Gas, the Presidential CNG Initiative, and the Nigerian Gas Flare Commercialisation Programme. These efforts aim to utilise Nigeria’s abundant natural gas resources, minimise gas flaring and promote carbon capture and storage (CCS) technologies, aligning with global energy sustainability goals. The CCE explained that there are ample investment opportunities across licensing and exploration activities, project development and financing, and technical and support services. The sector offers attractive fiscal incentives, including zero hydrocarbon tax and reduced royalty rates, alongside streamlined regulatory processes and the removal of entry barriers. He quoted President Tinubu as having aptly stated that “Nigeria must not only be open for business; Nigeria must be irresistible for investment.” With bold reforms, progressive regulations and a renewed commitment to making it easier for investors, Nigeria is poised to convert its resource potential into sustainable profits, driving economic growth and shared prosperity for over two hundred million Nigerians. The NUPRC boss, therefore, invited investors, both global and indigenous, to seize the vast opportunities within Nigeria’s upstream oil and gas sector and join in powering Nigeria’s present and securing its energy future. ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE