Policies, capitals cannot guarantee value creation in Nigeria’s energy sector – NUPRC boss, Komolafe

…fossil fuel remains indispensable in meeting energy demands

The Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has warned that policies and capital, while important, cannot by themselves guarantee value creation in Nigeria’s oil and gas sector.

 He stressed that the critical enabler remains skilled manpower, particularly Nigeria’s youthful population, whose talents must be honed through technical training, STEM education, and digital upskilling to secure the country’s place in the global energy transition.

Delivering his goodwill message at the PENGASSAN Energy and Labour Summit (PEALS) 2025 in Abuja, Komolafe cautioned that success in navigating the shifting global energy landscape would require Nigeria to invest deliberately in its people. “Policy and capital alone do not create value; people do. Nigeria’s opportunity is different: with a young and dynamic population, we have the chance to train, retain, and even export world-class energy professionals; positioning our nation not only as a leading oil producer but also as a human capital hub driving Africa’s energy transition,” he said.

The NUPRC boss drew attention to the International Energy Agency’s (IEA) projection of 20 million new energy jobs by 2030, insisting that Nigerian youths could fill a significant portion of these opportunities if adequately prepared. He described members of PENGASSAN as the engineers, geoscientists, HSE professionals, and technicians who convert investments into national prosperity, underscoring their centrality to the industry’s competitiveness and resilience.

While highlighting the role of people in driving growth, Komolafe also reaffirmed that fossil fuels remain indispensable in meeting the world’s expanding energy needs. 

He acknowledged that investment in low-carbon sources is gathering momentum, with global financing in renewables surpassing fossil fuels for the first time in history at $1.7 trillion in 2023 and rising to $2.1 trillion in 2024. Yet, he cautioned that hydrocarbons will continue to account for over half of global energy supply by mid-century. “Both OPEC and the U.S. Energy Information Administration underscore that fossil fuels will remain indispensable in meeting the energy demands of expanding populations and fast-growing economies, particularly in Asia and Africa,” he stressed.

Komolafe noted that for Nigeria, with 37.28 billion barrels of proven oil reserves and 210.54 trillion cubic feet of gas, the task is not only to be resource-rich but also to be resource-responsible. He called for a balance between sustaining current energy security and preparing for a low-carbon future, stressing that hydrocarbons must be produced with world-class efficiency and environmental stewardship, while investment in cleaner alternatives continues.

Speaking on reforms, he pointed to the transformative impact of the Petroleum Industry Act (PIA) 2021 and recent Presidential Executive Orders, which have reduced contracting timelines from 36 months to just six months, enhanced local content participation, and opened up deepwater, frontier basin, and gas projects to globally competitive fiscal terms. These reforms, he said, are already attracting new investments and unlocking growth opportunities in underdeveloped frontiers.

On production, Komolafe disclosed that NUPRC has been spearheading initiatives to boost incremental output through collaboration with industry stakeholders. He cited the “Project One Million Barrels per Day” programme and the adoption of cluster development strategies, which are reducing project costs, de-risking investments, and unlocking vast deepwater potentials. 

“These efforts have already increased production from 1.46 million barrels per day baseline in October 2024 to 1.8 million barrels today. With this momentum, we are firmly on track to reach our 2.5 million barrels per day target by 2026,” he said.

He further noted that sustainability remains a key pillar of NUPRC’s mandate, with the Commission championing decarbonisation and gas monetisation strategies. Through initiatives like the Nigerian Gas Flare Commercialisation Programme, the Decade of Gas, and the Presidential CNG Initiative, he explained that the Commission is driving efforts to end routine flaring by 2030, cut methane emissions by 60 percent by 2031, and create thousands of green jobs while positioning Nigeria as Africa’s gas powerhouse.

Komolafe concluded by commending PENGASSAN for convening the summit, stressing that conversations on energy must transcend oil and gas to touch the very core of Nigeria’s economic sovereignty and the livelihoods of millions of citizens. According to him, “Resilience is not built by chance, but by choice. Today, we must choose to invest in our people, drive innovation, safeguard the environment, and forge partnerships that will endure beyond market cycles and political terms.”

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