Category: Energy

The Energy Governance Alliance (EGA), a coalition advocating transparency and reforms in Nigeria’s oil and gas industry, has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and its Chief Executive, Gbenga Komolafe, for restoring investor confidence in the country’s petroleum sector, describing it as one of the early fruits of the Petroleum Industry Act (PIA) and the reform agenda of President Bola Tinubu.

In a statement on Sunday by its Executive Director, Dr. Kelvin Sotonye William, EGA said before the current administration and the present leadership at NUPRC, the environment for international investors in the oil and gas sector was increasingly hostile. 

It noted that the climate of uncertainty, aggravated by regulatory bottlenecks, policy inconsistency, and frequent disputes with host communities, forced many International Oil Companies (IOCs) to scale back or divest, leading to a sharp decline in investor confidence.

“Under previous regimes, the perception was that Nigeria’s upstream environment had become too unstable to guarantee the kind of long-term commitments that global energy investors demand. This was why many IOCs either left or significantly reduced their exposure,” Williams said. 

According to EGA, the reforms spearheaded by President Tinubu, particularly the decisive implementation of the PIA, have turned the tide. 

The group said Komolafe’s stewardship at NUPRC has provided the much-needed regulatory clarity, predictability, and investor assurance that had long been absent in the sector.

It noted that recent developments, such as the Production Sharing Contract (PSC) between the Nigerian National Petroleum Company (NNPC) Limited and TotalEnergies, as well as the renewed participation of IOCs in bid rounds, are clear indicators that investor confidence has been restored.

“These milestones reflect a new reality: IOCs are now returning to Nigeria. Far from being a country in retreat, Nigeria under the present dispensation has become an investment hub once again,” the statement read.

EGA added that the recent visit of Barclays Bank Plc to NUPRC headquarters in Abuja further reinforces this trend, as global financial institutions now openly express readiness to fund oil and gas projects in the country.

“The presence of Barclays Bank executives at the Commission is symbolic. It signals not only renewed confidence in Nigeria’s petroleum reforms but also a willingness by international financiers to backstop investments in the sector. This would have been unthinkable a few years ago when divestments were dominating the headlines,” the group said.

EGA maintained that Barclays’ interest is not an isolated case but part of a broader pattern of international actors recognising that the combination of the PIA and Tinubu’s reformist agenda has made Nigeria attractive again for capital inflows.

“What has been achieved is not cosmetic. It is structural. With clear regulatory direction, renewed investor confidence, and international financiers like Barclays willing to invest, Nigerians can now see the tangible benefits of reforms taking root. The story has shifted from abandonment to renewed engagement,” EGA said.

EGA reaffirmed its support for the Commission and the Tinubu administration, describing the recent milestones as proof that reforms, when consistently applied, can transform the oil and gas industry and reposition Nigeria as a global investment destination.

The West Africa Oil and Gas Reporters Network (WAOGRAN) has declared Nigeria the new destination for international oil and gas investment, crediting regulatory reforms driven by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under Gbenga Komolafe.

In a statement issued in Accra on Thursday, the regional media body, which monitors developments across the 16 West African countries, said Nigeria has “restored global confidence” in its upstream sector and repositioned itself as the continent’s investment hub.

WAOGRAN explained that its conclusion was drawn from months of industry monitoring, field reporting, and stakeholder engagement across the region, noting that the country’s progress represents a sharp break from the years of uncertainty and opacity that once discouraged foreign investment.

“The Nigeria of today is no longer viewed as a risky environment but as a destination of choice,” WAOGRAN declared in a statement issued Thursday in Ghana through its coordinator, Dr El-Hadji Mbow. 

“What has changed is the credibility of its regulatory framework. NUPRC has built an environment where companies can commit long-term capital with confidence, and that is why we say Nigeria is now the leading investment hub for global oil and gas.”

The statement highlighted key indicators of investor confidence, including a steady rise in crude production to 1.71 million barrels per day in July 2025, up from 1.55 million a year earlier, and a significant boost in gas utilisation with 1.372 trillion standard cubic feet harnessed in the first half of the year. Gas flaring has fallen to below nine percent, its lowest in more than a decade.

WAOGRAN also commended Nigeria’s 2024 oil block licensing round, describing it as “the most transparent in the country’s history”. 

Conducted with live broadcasts and public bid openings, the process attracted global participation and unlocked billions of dollars in prospective investments.

“For many years, licensing rounds were a source of suspicion. This time, the rules were clear, the process was open, and the credibility was visible to all. That transparency has had a ripple effect, changing how Nigeria is perceived by investors worldwide,” the network observed.

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With over 209 trillion cubic feet of proven gas reserves, Nigeria now holds the continent’s largest supply. WAOGRAN said the reforms have created a framework for gas to drive both Nigeria’s domestic transformation and Africa’s wider energy transition.

“Gas is Africa’s bridge to the future, and Nigeria is now firmly in the driver’s seat. The issue is no longer about reserves alone, but about trust in the system governing their exploitation,” Mbow noted. 

He stressed that Nigeria’s progress is already shaping reforms in neighbouring countries, adding that Ghana, Senegal, and Côte d’Ivoire have begun referencing Nigeria’s standards for licensing and reporting, signalling what WAOGRAN described as “a regional movement towards transparency and credibility.”

“By setting a model for the rest of West Africa, Nigeria has elevated the image of the entire region. When global investors see reforms in the largest market, it strengthens confidence across the sub-region,” Mbow explained on behalf of the group. 

WAOGRAN, however, cautioned that challenges such as oil theft, vandalism, and weak infrastructure remain serious obstacles. It urged Nigeria to institutionalise the reforms so that progress does not depend solely on individuals.

“The credibility we see today must be safeguarded beyond any single administration. Institutions must be strong enough to carry reforms forward,” the statement added.

The group also stressed the importance of linking investor confidence with citizen welfare, insisting that revenues from new investments must translate into social and economic development.

“Ultimately, success must be measured not just in barrels and dollars but in better jobs, healthcare and education for Nigerians,” WAOGRAN noted.

The network also commended President Bola Tinubu for providing the decisive backing that has enabled the NUPRC to drive far-reaching reforms and position Nigeria as a trusted destination for global oil and gas investment.

“In our monitoring and reporting across West Africa, nowhere has the transformation been more visible than in Nigeria,” WAOGRAN said. 

“The country has gone from being a place investors avoided to one they now compete to enter. That is the power of credible reform and excellent leadership.”