Tag: NUPRC

The Energy Governance Alliance (EGA) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for generating a record N12.25 trillion in revenue in 2024, describing it as a testament to the commission’s regulatory reforms and strategic leadership under Chief Executive, Gbenga Komolafe.

In a statement issued on Tuesday and signed by its Executive Director, Dr Kelvin Sotonye William, the alliance said the revenue achievement marked a watershed moment in Nigeria’s oil and gas sector, affirming NUPRC’s central role in repositioning the upstream industry for value creation, fiscal accountability and national development.

The figure, disclosed in the commission’s newly released 2024 Annual Report, represents a 182.25 percent increase from the N4.34 trillion generated in 2023. It also significantly surpassed the 2024 forecast revenue of N6.93 trillion by over N5 trillion.

“The Energy Governance Alliance welcomes the stellar performance of the NUPRC, under the visionary stewardship of Mr Gbenga Komolafe, for generating over N12 trillion in 2024 — the highest ever recorded in a single year in Nigeria’s upstream sector,” the statement reads.

“This performance is not accidental. It reflects sustained policy clarity, increased compliance, and a bold enforcement posture on critical issues such as royalty payments, gas flare penalties and lease renewals. These are the very foundations of energy justice, and we applaud the Commission for restoring regulatory credibility in a sector long plagued by opacity and inefficiency.”

EGA said the unprecedented revenue inflow has “revalidated the Petroleum Industry Act (PIA) 2021 as a working framework for revenue optimisation, investor discipline and upstream transparency”, adding that the Komolafe-led NUPRC had broken new ground in actualising the fiscal and institutional aspirations of the landmark law.

According to the commission’s breakdown, oil and gas royalties alone accounted for N11.08 trillion in 2024 — nearly twice the projected figure — while gas flared penalties brought in N391.26 billion, and concession rentals fetched N23.71 billion. Other key revenue lines included N369.57 billion from signature bonuses, N230.73 billion from lease renewals, N35.19 billion in miscellaneous income, and N117.02 billion from goods and valuable consideration.

Reacting to the figures, Dr William said the scale and spread of the revenue performance demonstrated a “whole-of-sector approach” that has closed long-standing loopholes and challenged entrenched rent-seeking behaviour.

“For the first time in recent memory, we are seeing a regulator extract value from multiple pressure points across the upstream system — from flare penalties to lease administration. This is what it means to govern oil in the public interest,” he said.

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EGA urged other agencies in the oil and gas ecosystem to emulate NUPRC’s results-oriented culture, noting that the commission’s transparency in publishing unreconciled production volumes, average daily outputs, and compliance with the technical allowable rate (TAR) regime was “a welcome deviation from the era of secrecy”.

The report had revealed that total crude production in 2024 stood at 578.5 million barrels — comprising 482.8 million barrels of oil and 95.7 million barrels of condensate — with a daily average output of 1.58 million barrels per day. Joint ventures contributed 48 percent of the production, followed by production sharing contracts at 35 percent, sole risk operations at 13 percent, and marginal fields at 4 percent.

The alliance also welcomed NUPRC’s disclosures on the TAR, which stood at 67 percent in 2024, and urged further collaboration with industry players to raise efficiency levels.

“This is not just about revenue. It’s also about regulatory honesty. By publishing unreconciled volumes and clarifying that they are not to be mistaken for export figures, NUPRC has sent a strong message that it is no longer business as usual. This level of transparency is key to improving investor confidence and public trust,” William said.

EGA said it was particularly impressed with the commission’s performance in gas flare penalties and lease renewals, which surpassed their 2024 projections by over 200 percent, indicating renewed rigour in enforcement.

It noted that N391 billion was realised from gas flaring penalties, compared to a projected N126 billion, while lease renewals brought in N230.73 billion, almost three times the forecasted N80.63 billion.

“Gas flaring is an ecological crime and an economic waste. The fact that penalties have become a major revenue item shows the Commission’s zero-tolerance stance. We expect this to further push operators towards cleaner and more responsible energy production,” the alliance added.

The alliance urged the Federal Government to channel a significant portion of the NUPRC’s revenue surplus into supporting host communities, funding clean energy transitions and closing infrastructure gaps in the Niger Delta.

“Komolafe’s performance shows that Nigeria’s oil sector can deliver both revenue and reform — if we prioritise competence, clarity and courage. The Energy Governance Alliance urges President Bola Ahmed Tinubu to continue backing such reforms and ensure that the NUPRC remains insulated from political interference,” the statement concluded.

…say commission anchoring Tinubu’s Renewed Hope Agenda

Experts and civil society representatives have commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for driving transparency in the implementation of the Petroleum Industry Act (PIA), describing the Commission under Gbenga Komolafe’s leadership as key to realising President Bola Tinubu’s Renewed Hope agenda in the oil and gas sector.

The commendation was made during a recent one-day stakeholder forum held in Warri, Delta state, themed ‘Situation Room on Monitoring of PIA’. The event was organised by the Centre for Social Justice, Equity and Transparency (CESJET) in partnership with Shafana Enterprises Limited.

The forum brought together policy experts, petroleum law scholars, traditional rulers, students and civil society groups to assess the implementation of the PIA and identify opportunities to strengthen transparency, regulatory oversight, and community engagement.

In his keynote address, Dr. Henry Efemona Idudje of the Federal University of Petroleum Resources, Effurun, said NUPRC has emerged as a stabilising force in the petroleum sector and has made significant strides in implementing the transparency provisions of the PIA.

“Under Komolafe, the Commission has taken visible steps to end the era of opaque regulation in the upstream sector. From transparent licensing rounds to clearer fiscal disclosures, we are seeing improvements in how the sector is managed,” Idudje said.

He added that effective implementation of the PIA could unlock long-term investments and reduce tensions in oil-producing regions if transparency is sustained.

Also speaking at the forum, Dr. Arisabor Lucky, a petroleum law expert from the same university, said the legal and institutional frameworks of the PIA are being strengthened by the Commission’s “visible commitment to due process and accountability”.

“The law is only as effective as its enforcers. What we’ve seen from the NUPRC so far, particularly with respect to host community provisions and reporting obligations, is commendable,” he said.

A representative from the Nigeria Maritime University, Delta State, said sustained stakeholder participation — especially civil society involvement — is crucial in holding regulators accountable.

“NUPRC’s openness to civic participation and data sharing represents a major departure from the past. We urge the Commission to keep that door open,” he said.

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Mallam Nasir Abdulquadri, Project Manager at Shafana Enterprises, said the purpose of the forum was to evaluate how far institutions like the NUPRC have gone in delivering on the objectives of the PIA.

He said the Commission’s role in anchoring the Tinubu administration’s Renewed Hope agenda in the petroleum sector was evident through systematic reforms and enforcement of compliance measures.

“The PIA is one of the most consequential legislative interventions in Nigeria’s oil and gas history. What we need now is consistency and openness. NUPRC, under Komolafe, is showing that commitment,” Abdulquadri said.

He added that stronger monitoring, improved community feedback, and inter-agency collaboration would consolidate the early gains.

Traditional rulers at the forum also praised the Commission’s outreach efforts. Chief Ekeme Otuedon, a monarch from Delta State, said the Commission’s engagement with host communities has helped ease longstanding tensions.

“We have seen more consultation, more visits, and better communication from the regulator in the past year. That makes a difference in how communities respond to government presence,” he said.

A student representative from the Delta State University, Fejiro Oghenegivwe, said transparency and openness in petroleum sector governance matter to young professionals.

“As future engineers and scientists, we are inspired by how regulatory standards are being strengthened. It gives us hope that merit and accountability are possible in this industry,” she said.

Participants at the forum called for the institutionalisation of such multi-stakeholder situation rooms across oil-producing regions, with quarterly reviews to ensure the PIA continues to serve the interests of citizens and communities.