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  • Oil theft reduces to 5,000b/d, says NUPRC boss Komolafe

    Oil theft reduces to 5,000b/d, says NUPRC boss Komolafe

    …eyes 2.6mb/d in December 2026

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said crude oil theft has reduced to 5,000 barrels of oil per day (bopd) through kinetic and non-kinetic intervention.

    Commission Chief Executive, Engr Gbenga Komolafe highlighted reforms and achievements in Nigeria’s oil and gas sector at the Renewed Hope Global Town Hall Conference in Abuja.

    This was however, contained in the press statement the Head of Public Affairs and Corporate Communication, Mrs Olaide Shonola, issued yesterday.

    Komolafe said that owing to the intervention, crude oil production that dipped to 1.1 million bopd in 2022 has now soared to 1.7bopd.

    The statement said, “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.”

    The presentation further disclosed that the NUPRC has targeted to increase crude oil production to 2.6 million per day by December 2026 through the increase of 1 mb/d.

    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.”

     Komolafe emphasised the need for a paradigm shift to position Nigeria as a leader in energy security and economic growth.

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    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.

    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, 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.

  • NUPRC to deny export permits for producers not supplying local refineries

    NUPRC to deny export permits for producers not supplying local refineries

    In a swift move to avert a confrontation between oil producers and oil refiners, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) at the weekend warned that it will henceforth deny export permits oil cargoes intended for domestic refining, if oil companies do not fulfill their domestic crude obligations. The commission insists that any changes to cargoes designated for domestic refining must receive express approval from the Commission’s Chief Executive (CCE).

    “Kindly note that the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining,” the CCE, Gbenga Komolafe, warned, adding that the NUPRC will no longer tolerate violations of the laws governing domestic crude supplies to local refineries, as such actions have implications for the country’s energy security.

    In a telephone interview last night with The Nation, Komolafe explained further: “What we did as a regulator is to quickly intervene in a situation that could lead to misunderstanding between the producers and the refiners. It is our duty as a regulator to ensure that there is energy security in the country that was exactly what we did at the weekend meeting between both parties.”

    Citing Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude oil to domestic refineries and strengthen the nation’s energy security, Komolafe was emphatic that the NUPRC will henceforth strictly enforce the policy regarding implementation and defaults by oil companies.

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    He further explained that significant regulatory actions have already been taken by the Commission, in line with the enabling laws, to enforce compliance with the Domestic Crude Supply Obligation (DCSO). These actions, Komolafe noted to include the development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as the creation of the DCSO framework and procedure guide for implementation.

    Consequently, the NUPRC, in a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the Commission reiterated that diverting crude oil meant for local refineries violates the law.

    Komolafe, at a meeting convened by the Commission last weekend for both the producers and refiners, which was attended by more than 50 critical industry players, including the NNPCL, and other IOCs, both the refiners and producers blamed each other for the inconsistencies in the implementation of the Domestic Crude Supply Obligation (DCSO) policy. They, however, agreed that the regulator has put in place appropriate measures for effective implementation.

    In a statement signed by the Public Affairs Unit of the NUPRC and made available to The Nation, it noted that while the refiners claimed that producers were not meeting supply terms and preferred to sell their crude outside, forcing them to look elsewhere for feedstock, the producers countered that refiners hardly met commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.

    The regulator cautioned against any further breaches from either party. It advised refiners to adhere to international best practices in procurement and operational matters and reminded producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the CCE before selling crude outside the agreed framework to avoid abuse.

  • NUPRC warns oil producers, refiners

    NUPRC warns oil producers, refiners

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it will henceforth deny export permits for crude oil cargoes intended for domestic refinning if oil companies do not fulfill their domestic crude obligations.

     The commission insisted that any change to cargoes designated for domestic refining must receive express approval from the Commission’s Chief Executive.

    This was contained in a press statement by the Public Affairs Unit of the NUPRC.

    The statement said in a letter dated February 2, 2025 to exploration and production companies and their equity partners, the Commission Chief Executive (CCE), Engr. Gbenga Komolafe reiterated that diverting crude oil meant for local refineries violates the law. 

    At a meeting last weekend, attended by more than 50 critical industry players, both the refiners and producers blamed each other for the inconsistencies in the implementation of the Domestic Crude Supply Obligation (DCSO) policy. They, however, agreed that the regulator has put in place appropriate measures for effective implementation.

    While the refiners claimed that producers were not meeting supply terms and preferred to sell their crude outside, forcing them to look elsewhere for feedstock, the producers countered that refiners hardly met commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.  

    The regulator cautioned against any further breaches from either party. It advised refiners to adhere to international best practices in procurement and operational matters and reminded producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the CCE before selling crude outside the agreed framework. This is to avoid abuse.

    Komolafe referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude oil to domestic refineries and strengthen the nation’s energy security, and stated that NUPRC will henceforth strictly enforce the policy regarding implementation and defaults by oil companies.

    Read Also: NUPRC projects 770,500bpd refining requirement

    He stated that significant regulatory actions have already been taken by the Commission, in line with the enabling laws, to enforce compliance with the Domestic Crude Supply Obligation (DCSO). These actions include the development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as the creation of the DCSO framework and procedure guide for implementation.

    Also, during monthly meetings with upstream operators, NUPRC monitors compliance with production metrics that provide insight into available crude volumes two months in advance, facilitating discussions regarding supply commitments to refineries.

    The CCE stressed that it will no longer tolerate violations of the laws governing domestic crude supplies to local refineries, as such actions have implications for the country’s energy security. “Kindly note that the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining,” he warned.

  • Natasha urges NUPRC to prioritise local firms for project execution

    Natasha urges NUPRC to prioritise local firms for project execution

    The Chairman of the Senate Committee on Local Content, Senator Natasha Akpoti-Uduaghan, has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to mandate International Oil Companies (IOCs) to prioritise engagement of local companies for project execution.

    Akpoti-Uduaghan made the call during a meeting between the Senate Committee on Appropriation

    and the Nigerian National Petroleum Company Limited (NNPCL) and the NUPRC, according to a statement by her Chief Press Secretary, Isreal Arogbonlo in Abuja.

    She expressed concern over the neglect of local companies, citing the example of Samsung Heavy Industries Nigeria.

    She said despite investing $272 million in a facility in Lagos and training over 500 Nigerians, Samsung has only secured one project since 2013.

    The Senator emphasised that engaging local companies would reduce production costs and turnaround time, while creating jobs for Nigerians.

    Her words: “A few weeks ago, Samsung Heavy Industries Nigeria approached me in my capacity as Chairman of the Senate Committee on Local Content.

    “They informed me that in 2013, they invested $272 million to establish a facility in Lagos and trained over 500 Nigerians.

    “However, despite this significant investment, Samsung Heavy Industries – a reputable player in the upstream sector – has only managed to secure one project since 2013, and that was back in 2018.

    “They have repeatedly applied to various companies but have not received any contracts, even though they are fully capable of handling these projects.

    “Instead, international Oil Companies (IOCs) are outsourcing these contracts to foreign companies, neglecting local firms like Samsung that possesses the capacity to deliver these services within Nigeria. This situation is unacceptable.

    “We seek to understand why a major fabrication company like Samsung Heavy Industries, which has invested heavily in Nigeria, is being overlooked.

    “Engaging them would not only reduce production costs and turnaround time but also create jobs for Nigerians.

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    “Often, we encourage foreign companies to invest in Nigeria with the promise of engagement, which is meant to yield mutual benefits – profit for investors and economic growth, including job creation, for Nigeria.

    “Unfortunately, since 2018, none of the IOCs have engaged Samsung for turnaround maintenance or other projects.”

    She urged the NUPRC to ensure that IOCs prioritises local content in their operations.

    In response, NUPRC’s Chief Executive Officer, Gbenga Komolafe, acknowledged the issue and highlighted the recent improvement in rig count, which is expected to drive positive changes in the sector.

    “For a long time, capital expenditure in the industry was below 94 per cent, which negatively impacted the rig count.

    “However, the current rig count has increased to approximately 31 per cent, which is encouraging.

    “We expect this improvement to lead to positive changes in the sector,” the NUPRC boss noted.

  • NUPRC projects 770,500bpd refining requirement

    NUPRC projects 770,500bpd refining requirement

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday fixed 770,500 billion of oil per day (bopd) for domestic refineries.

    Its Chief Executive, Engr. Gbenga Komolafe made this known in a document titled: “First Half 2025 Crude Oil Requirement of Functional Refineries.”

    He attributed the document to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in line with section 10(1) (2) of the Production Curtailment.

    Komolafe said the volume of crude oil is 37 per cent of the 2.06mb/d production target of 2025.

    He said: “The forecasted daily crude requirement for Refineries which is 770,500 Bopd, is about 37per cent of the forecasted first half 2025 average daily production of 2,066,940 Bopd.

    “However, it will be recalled that in October 2024, NUPRC launched Project 1 million Barrels which is expected to favourably impact the national production.”

    NUPRC, he said, is leveraging the capacity of upstream operators to meet the target daily production of 2,500,000 bopd in the short term.

    Komolafe said this strategic initiative aligns with Nigeria’s commitment to bolstering its domestic refining capacity and ensuring the sustainability of its oil industry.

    Read Also: NUPRC committed to fairness, inclusivity in oil licensing process – Nelson Adanna

    According to him, the first half of 2025 is expected to witness increased synergy between local refineries and producing companies, setting the stage for a more robust and self-reliant petroleum landscape in Nigeria.

    This is coming on the heels of the NUPRC first half 2025 crude oil production forecast of producing oil companies and the refining requirement of functional refineries in Nigeria.

    Komolafe said the move is pursuant to Section 109 of the Petroleum Industry Act (PIA), 2021 and it is aimed at effective capacity utilization of the nation’s domestic refineries by ensuring a consistent supply of crude oil.

    In the first half of 2025, Komolafe said Dangote Refinery and Petrochemicals FZE in Lagos would get 99,550,000 bbls OPAC Refinery in Forcados in Delta State would get 900,000bbls and Waltersmith Petrochemical Limited in Imo State would get 814,500bbls.

  • NUPRC: Upstream decarbonisation template takes off this month

    NUPRC: Upstream decarbonisation template takes off this month

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said its decarbonisation template would take off this month. The Upstream Petroleum Decarbonisation Template (UPDT) requires licensees and lessees to reduce greenhouse gas emissions, adopt low-carbon technologies, implement energy efficiency measures, and incorporate renewables in their operations.

    The Commission’s Chief Executive, (CCE), Gbenga Komolafe, an engineer, made this known in its policy statement issued yesterday.

    According to him, by implementing these templates, the Commission ensures compliance with Nigeria’s broader climate objectives, including its commitment to Net Zero by 2060.

    “Against the foregoing, this Template will become a mandatory component of applications for licences, permits and approvals across upstream activities, commencing in January 2025,” the signed statement from the Commission said.

    It further explained that the UPDT mandates the integration of decarbonisation strategies/plans into upstream operations including Field Development Plans (FDPs), wells, drilling & rig operations, and project/facility engineering.

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    Komolafe said the operators would therefore establish measurable and time bound greenhouse gas reduction goals aligned with national targets and demonstrate compliance with the Gas flaring, venting, and methane emissions regulations 2023, and other related Guidelines, to eliminate routine flaring and venting in their operations.

    He added that operators must implement methane management programmes such as leak detection and repair, optimise operations using energy-efficient technologies, and integrate renewable energy sources into their projects and operations.

    He said the UPDT also stipulates the development of carbon management and monetisation initiatives, including Carbon Capture and Storage (CCS), nature-based solutions, carbon offset projects, etc.

    “Rather than constituting a regulatory hurdle, these measures are designed to enhance Nigeria’s upstream sector’s environmental credentials, attract  sustainable energy investments, and ensure alignment with international Environmental, Social, and Governance (ESG) standards.

    “By embedding sustainability at the core of upstream operations, the Commission aims to enable continued access to funding for projects amidst the global shift towards low-carbon energy solutions.

    “The Commission therefore calls on stakeholders to adopt these measures as a pathway to achieving long-term sustainability, operational excellence, and regulatory compliance whilst mitigating defunding and financing challenges.

    “In addition to technical guidance, the Commission will provide capacity building programmes and other support mechanisms to facilitate seamless implementation, commencing with an Industry-Wide Decarbonisation Workshop in Quarter 1 2025.

    “With these efforts, the Commission reaffirms its business-enabling posture and commitment to ensuring that Nigeria’s upstream oil and gas industry thrives in the evolving global energy landscape. By prioritising sustainability, the Commission seeks to secure Nigeria’s position as a leader in global energy while contributing meaningfully to international climate action in a just, equitable, and balanced manner.”

    Komolafe explained that the  purpose of this Policy Statement by the NUPRC is to strengthen the Decarbonisation and Sustainability Agenda of Nigeria’s Upstream Oil & Gas operations to enhance its global competitiveness and foster investment attractiveness of the sector, amidst global energy transition imperatives.

    The Commission, according to the statement, in keeping with its mandate for technical, commercial, and operational monitoring of Upstream Oil and Gas Operations in Nigeria, has issued the Upstream Petroleum Decarbonisation Template (UPDT) to the industry as a Regulatory Tool.

    He said this Template is one of the measures to promote energy sustainability and environmental stewardship in Nigeria’s upstream operations in alignment with Nigeria’s commitment to net zero emissions and the imperatives for global energy transition.

    He said by this, the Commission is deepening its efforts to align the upstream petroleum industry with national priorities and international climate goals while ensuring sustainable value creation from oil & gas resources for Nigeria’s energy security and economic development.

    He recalled that in 2023, the NUPRC introduced the “Regulatory Framework for Energy Transition, Decarbonisation, and Carbon Monetisation in the Nigerian Upstream Oil and Gas Sector,” to signal the direction to the industry to enable sustained (and improved) competitiveness in global energy markets.

    He said the Regulatory Framework and its implementation architecture were rolled out to operationalise high-impact actions around Seven (7) Pillars, amongst which is the introduction of the Upstream Petroleum Decarbonisation Template (UPDT).

    He said UPDT is premised on Section 6 (d),(g),(h),(i),(j),& (k) of the Petroleum Industry Act, 2021(PIA), and similar provisions which mandate the Commission to promote sustainability measures and enforce environmental stewardship in upstream activities.

  • NUPRC committed to fairness, inclusivity in oil licensing process – Nelson Adanna

    NUPRC committed to fairness, inclusivity in oil licensing process – Nelson Adanna

    Public analyst Nelson Adanna has expressed concerns over a recent article by Blessing Agbomhere, a Labour Party member, published on an online news platform that has stirred reactions within the Niger Delta community.

    According to Adanna, Agbomhere, whose party lost the recent election and who continues to express distress over the post-election fallout, raised serious allegations against the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    Adanna noted that Agbomhere demanded the NUPRC reverse the 2024 licensing and the 2022/23 Mini Bid Round for oil blocks in the Niger Delta region, citing a lack of inclusivity and fairness in the process.

    He also opined that, in response, the Concern Group of Indigenous Niger Delta Citizens has highlighted this claim as a potentially treasonous action, questioning the intent behind Agbomhere’s article. Despite these allegations, it is crucial to set the record straight regarding the fairness, transparency, and inclusivity of the NUPRC’s processes.

    Speaking on the matter, Adanna stated, “The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has consistently upheld its commitment to transparency, inclusivity, and fairness in managing Nigeria’s oil and gas resources. In the face of recent accusations, the NUPRC is reaffirming its adherence to the principles of the Petroleum Industry Act (PIA), which governs the oil licensing and bidding processes.

    “The NUPRC’s operations are conducted with a clear focus on ensuring that all stakeholders are treated equitably, regardless of their geographical or political affiliations.

    “The bidding processes for both the 2024 Licensing and the 2022/23 Mini Bid Round were carried out in strict accordance with the PIA, which was designed to ensure transparency at every stage. Independent observers closely monitored these processes to guarantee their credibility and fairness. Every eligible stakeholder, including those from the Niger Delta, was given equal opportunities to participate in the bidding process.

    “The Niger Delta region’s central role in Nigeria’s oil and gas industry is well recognised, and proactive efforts were made to ensure Indigenous participation in the bidding rounds. Several indigenous Niger Delta companies successfully met the eligibility criteria and actively participated in the bidding, securing opportunities to contribute to the sector’s growth.”

    He added, “Despite claims of regional exclusion, the NUPRC’s approach was designed to encourage local participation, ensuring that indigenous companies could compete on a level playing field. The NUPRC firmly believes that the success of the oil and gas sector hinges on the inclusion of all stakeholders, particularly those from the oil-producing regions.

    Read Also: Niger Delta indigenes urge NUPRC to reverse ‘unfair’ licensing of oil blocks

    “The allocation process for oil blocks has been meticulously crafted to align with both environmental sustainability and economic growth. The NUPRC’s focus is to ensure that Nigeria’s oil and gas resources benefit not only the host communities in the Niger Delta but also the broader Nigerian economy.

    “The process also considered environmental and social factors, reinforcing the NUPRC’s commitment to a balanced approach that promotes sustainable development. By prioritising national development goals, the NUPRC seeks to harmonise the interests of the oil-producing regions with the overall well-being of the nation.

    “The NUPRC has stated that claims of regional exclusion are baseless. The commission follows an impartial process, evaluating applicants based on objective criteria such as technical expertise, financial capacity, and legal compliance.

    “While delays did occur during the bidding process, they were necessary to refine the framework and ensure that international best practices were adhered to. These delays were not meant to exclude any stakeholders but were aimed at creating a more thorough, fair, and transparent process.”

    Continuing, he explained that suggestions making the rounds that a new bidding round is required are unjustified, stating that the process has already been subjected to independent audits.

    “Moreover, the suggestion that a new bidding round is required is unjustified. The process has already been subjected to independent audits, which confirmed its fairness and compliance with the necessary legal and regulatory standards. Repeating the process would create unnecessary regulatory instability, potentially deterring further investment in the sector.”

    He added: “In conclusion, the NUPRC remains committed to fostering peace, stability, and sustainable development in the Niger Delta region. The commission invites all stakeholders to engage in constructive dialogue to address any lingering concerns and collaborate on solutions that will benefit all parties involved.

    “While the allegations raised by Blessing Agbomhere are without merit, they highlight the need for continued transparency and open communication in the sector.

    “The NUPRC values the contributions of the Niger Delta and is determined to ensure that the oil and gas sector serves the interests of all Nigerians. By working together, stakeholders can contribute to the development of a more sustainable and equitable oil industry that benefits the nation as a whole.

  • Niger Delta indigenes urge NUPRC to reverse ‘unfair’ licensing of oil blocks

    Niger Delta indigenes urge NUPRC to reverse ‘unfair’ licensing of oil blocks

    Some Niger Delta indigenes have urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to reverse the 2024 licensing and 2022/23 Mini Bid Round for oil blocs in the oil rich Niger Delta region

    They gave the commission a seven day notice to do so.

    The indigenes said that the process was discriminatory and unlawful as it was in clear violation of the Petroleum Industry Act, which is the Commission’s own operational guideline.

    They said they have been “unjustly excluded from the licensing process despite their substantial investments.”

    In a letter addressed to the Chief Executive of NUPRC, Engr. Gbenga Komolafe, Counsel to the aggrieved Niger Deltans, Blessing Agbomhere of Blessing Agbomhere and Partners, notified the Commission of the intention of his clients to begin legal proceedings against it if at the end of the seven days notice the commission fails to carry out a fresh bidding process for the oil blocs in conformity with the fundamental principles of fairness, equity, and inclusivity.

    Some of the Niger Delta indigenes who the law firm is representing included: Undiandeye Akonfe, James Okeati, Chief Victor Akposeseye Okiri, Fortune Nakoro, Arc. Kenneth Anyanwu, Okwara Idika, Akpan Edem, Otetubi Tolulope and Olali Solomon.

    Read Also: Reps query NUPRC over N120 billion expenditure on personnel, overhead

    The letter said: “You will also recall that Niger Delta stakeholders are key contributors to Nigeria’s oil and gas sector and have been unjustly excluded from the licensing process despite their substantial investments, environmental sacrifices and statutory rights under the Petroleum Industry Act. Additionally, the two year delay in the licensing round has raised significant concerns about transparency, regulatory compliance, and the economic viability of the process.

    “Excluding the Niger Delta Companies from benefiting from the resources in their region could lead to renewed agitation and conflict in the region. A licensing process that excludes critical stakeholders from resource governance undermines the peace building efforts achieved through years of negotiation with Host communities.”

    The indigenes are seeking that the declaration of the allocation of oil blocs to Companies whose majority shareholders are all from outside the Niger Delta region and whose head office are not located within the region as against the expression of interest by persons who hail from the Niger Delta region is a violation of sections 15(1), 42(1), and 318(1) of the 1999 constitution (as amended), the Petroleum Industry Act and the Nigerian Content Development Act.

    They are also demanding an order of the Court directing the Minister of Petroleum Resources to withhold his consent to the allocation until another round of bidding was conducted.

  • Reps query NUPRC over N120 billion expenditure on personnel, overhead

    Reps query NUPRC over N120 billion expenditure on personnel, overhead

    • Demand details of oil production, crude sales

    The House of Representatives joint Committees on Finance and National Planning have frowned at the huge expenditure of over N120 billion by Nigeria Upstream Petroleum Regulatory Commission (NUPRC) on personnel and overhead cost annually.

    Speaking during an interactive session with key agencies on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), Chairman of the House Committee on Finance, James Abiodun Faleke (APC, Lagos) directed the agency to provide details of oil production, crude sales and other activities in the Upstream Petroleum Industry in the country.

    NUPRC Executive Commissioner Economic Regulation & Strategic Planning (ECR&SP), Babajide Oluwole Fasina who represented the Chief Executive Officer (CEO) of the organisation, Gbenga Olu Komolafe had presented the revenue and expenditure before the committee.

    Responding to the presentation, Faleke said “I’m wondering what type of organization you have.You are paying 88 billion as salaries. How many staff do you have? How many staff do you have?

    “National Assembly, before the review, they give us N150 billion for our expenditure every year and that is shared between the Senate, House of Representatives, management and everybody.

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    “So only your agency is spending N88 billion. That’s why you have so much. So much money because of 4% cost of collection. 4% is too much. We need money…you are spending N88 billion on personnel, and you are spending over N40 billion on overhead.”

    Despite trying to justify the figure, the Committee rejected the NUPRC’s explanation and demanded  comprehensive records from the Commission as regards its revenues, expenditure and all other activities including exploration activities of Frontier Explorations’ at various Frontier Basins in the country where oil prospecting activities are taking place.

    “You are going to come back with all the records of all the wells that produce the oil litre by litre per day. How much oil do we get from here every day,” Faleke asked rhetorically.

    The lawmaker further said: “You are going to come back with records of shipments of crude either daily or weekly at what rate. You are going to come back with proposals of 2025 as to the expectations of two million five barrels per day, 2.06 million per day.

    “And you reach out to the Frontier or whatever you called them. You come together with them and must come with the records of all Frontier activities, expenses incurred, crude oil realized from there and of course the sales proceeds and add what the Frontiers are doing. The day they started and how far they have gone. You must come here with them on the 18th. We expect you here on the 18th by 11am.”

    Earlier in his presentation, Fasina informed the Committee that NUPRC derives its revenues from oil royalty, gas royalty, concession rental, gas flat penalty, miscellaneous oil revenues which include fines and levies, signature bonus and renewal of licenses.

    Giving a highlight of the revenue collections, he said the NUPRC gets 4% Cost of Revenue Collection for the total revenue collected on behalf of the federal government which he said were credited directly to the Federation Account and while FAAC credits the 4% to the Commission.

    He said, “The Cost Of Revenue Collection amounted to N114.84 billion in 2023 as against N114.38 billion in 2022. The amount released in 2023 includes N2.82 billion for Capital Expenditure, though N173.77 billion was due as 4% on the Actual Collections of N14.34 Trillion in 2023.

    “The Commission also generates revenues internally such as, Registration Fees, Licence Fees, Fines, Recoveries, etc. It generated N1.44 billion in 2023 compared to N30.08 billion in 2022, and this accounts for 1.26% of the total Revenue realized in 2023 and 2.62% in 2022 respectively.

    Fasina, however, informed the Committee that the Commission recorded a high expenditure in 2023 compared to 2022 by N11.46 billion which he said was an increase of 10.83%.

    He added, “Personnel Cost which has the largest share amounting to N82.35 billion represents 70.19% of the total expenses of N117.33 billion, followed by Overhead Costs of N31.63 billion which accounts for 26.96 billion”.

    The NUPRC Executive Commissioner however informed that, the Commission’s non-tax remittance dropped from N3.67 billion in 2022 to N1.77 billion in 2023 and an Amortisation and Depreciation of N246.66 million and N1.33 billion respectively.

    Also, the Committee directed the Nigeria Bulk Electricity Trading to provide details of its budget performance and other activities in the electricity market.

    The agency has in its submission informed the Committee about the ‘reason for disparity between Generation Companies (Gencos) invoices and amount invoices to Distribution Companies (DisCos).

    The agency’s documents stated, “NBET invoices DisCos before receiving and verifying GenCo invoices as required by the settlement Calendar. This timing difference means that components such as interest and True-Up, which are included in GenCo invoices cannot be reflected in the invoices sent to DisCos, Consequently, the mismatch in timing leads to discrepancies in the amounts invoices.

    “Apart from the DisCos, other off-takers such as Ajaokuta Steel Company and Net Importer Generation Companies are included in the invoicing process. The inclusion of these off-takers introduces further complexities that contribute to the disparity between actual invoices and the amounts invoices to DisCos.

    “The supplementary order under the Transitional Electricity Market (TEM) framework mandates the use of specific tariff for invoicing Net Importer GenCos. These tariff requirements create additional differences between the amounts invoiced to GenCos and those passed on to DisCos.”

  • Reps query NUPRC over N120bn annual personnel, overhead costs

    Reps query NUPRC over N120bn annual personnel, overhead costs

    The House of Representatives Joint Committees on Finance and National Planning have expressed concern over the Nigeria Upstream Petroleum Regulatory Commission’s (NUPRC) annual expenditure of over N120 billion on personnel and overhead costs.

    During an interactive session with key agencies on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the Chairman of the House Committee on Finance, James Abiodun Faleke (APC, Lagos), instructed the NUPRC to provide comprehensive details of oil production, crude sales, and other activities within the upstream petroleum sector.

    The NUPRC’s Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Oluwole Fasina, who represented the agency’s Chief Executive Officer, Gbenga Olu Komolafe, presented the commission’s revenue and expenditure report to the committee.

    Responding to the presentation, Faleke said: “I’m wondering what type of organization you have.You are paying 88 billion as salaries. How many staff do you have? How many staff do you have? 

    “National Assembly, before the review, they give us N150 billion for our expenditure every year and that is shared between the Senate, House of Representatives, management and everybody.

    “So only your agency is spending N88 billion. That’s why you have so much. So much money because of 4% cost of collection. 4% is too much. We need money, you are spending N88 billion on personnel, and you are spending over N40 billion on overhead.”

    Despite trying to justify the figure, the Committee rejected the NUPRC’s explanation and demanded a comprehensive records from the Commission as regards its revenues, expenditure and all other activities including exploration activities of Frontier Explorations’ at various Frontier Basins in the country where oil prospecting activities are taking place.

    In his ruling, Faleke said: “You are going to come back with all the records of all the wells that produce the oil litre by litre per day. How much oil we get from here everyday. 

    “You are going to come back with records of shipments of crude either daily or weekly at what rate. You are going to come back with proposals of 2025 as to the expectations of two million five barrels per day, 2.06 million per day.

    “And you reach out to the Frontier or whatever you called them. You come together with them and must come with the records of all Frontier activities, expenses incurred, crude oil realized from there and of course the sales proceeds and add what the Frontiers are doing. The day they started and how far they have gone. You must come here with them on the 18th. We expect you here on the 18th by 11am.”

    Earlier in his presentation, Fasina informed the committee that, NUPRC derive its revenues from oil royalty, gas royalty, concession rental, gas flat penalty, miscellaneous oil revenues which include fines and levies, signature bonus and renewal of licenses.

    Read Also: Komolafe: Why NUPRC added anti-graft agencies to portal 

    Giving a highlight of the revenue collections, he said the NUPRC gets 4% cost of revenue collection for the total revenue collected on behalf of the federal government which he said were credited directly to the Federation Account and while FAAC credits the 4% to the Commission:  

    He said: “The Cost Of Revenue Collection amounted to N114.84 billion in 2023 as against N114.38 billion in 2022. The amount released in 2023 includes N2.82 billion for Capital Expenditure, though N173.77 billion was due as 4% on the Actual Collections of N14.34 Trillion in 2023.

    “The Commission also generates revenues internally such as, Registration Fees, Licence Fees, Fines, Recoveries, etc. It generated N1.44 billion in 2023 compared to N30.08 billion in 2022, and this accounts for 1.26% of the total Revenue realized in 2023 and 2.62% in 2022 respectively.

    Fasina, however, informed the Committee that, the Commission recorded a high expenditure in 2023 compared to 2022 by N11.46 billion which he said was an increase of 10.83%.

    He added: “Personnel Cost which has the largest share amounting to N82.35 billion represents 70.19% of the total expenses of N117.33 billion, followed by Overhead Costs of N31.63 billion which accounts for 26.96 billion.”

    The NUPRC Executive Commissioner however informed that, the Commission’s non-tax remittance dropped from N3.67 billion in 2022 to N1.77 billion in 2023 and an Amorisation and Depreciation of N246.66 million and N1.33 billion respectively.

    Also, the Committee directed the Nigeria Bulk Electricity Trading to provide details of its budget performance and other activities in the electricity market.

    The agency has in its submission informed the Committee about the ‘reason for disparity between Generation Companies (Gencos) invoices and amount invoices to Distribution Companies (DisCos).

    The agency’s documents stated: “NBET invoices DisCos before receiving and verifying GenCo invoices as required by the settlement Calendar. This timing difference means that components such as interest and True-Up, which are included in GenCo invoices cannot be reflected in the invoices sent to DisCos, Consequently, the mismatch in timing leads to discrepancies in the amounts invoices.

    “Apart from the DisCos, other off-takers such as Ajaokuta Steel Company and Net Importer Generation Companies are included in the invoicing process. The inclusion of these off-takers introduces further complexities that contribute to the disparity between actual invoices and the amounts invoices to DisCos.

    “The supplementary order under the Transitional Electricity Market (TEM) framework mandates the use of specific Tariff for invoicing Net Importer GenCos. These Tariff requirements create additional differences between the amounts invoices to GenCos and those passed on to DisCos.”