The Nigerian Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has shown confidence in the potential benefits for Nigeria’s petroleum sector stemming from President Donald Trump’s expected pro-oil and gas policies. Gbenga Komolafe, the Chief Executive of NUPRC, made this statement during the Petroleum Industry Stakeholders forum held in Abuja on Thursday.
Komolafe noted that the energy sector fund increased by nearly 4% the day following Trump’s 2024 Presidential victory, indicating market optimism for fossil fuel investments under his anticipated policies. He pointed out that renewable energy companies experienced declines, with U.S. solar leader First Solar dropping over 10%. These market trends suggest that Trump’s second term may prioritize traditional energy sectors, potentially reducing support for renewables while promoting oil and gas development.
“This is promising news for the Nigerian upstream sector, as we are not operating in a vacuum. It brings significant hope and renewed energy to our efforts in developing the industry,” he stated. Komolafe highlighted that the 2025 budget is based on crude oil production of 2.062 million barrels at $75 per barrel, while the country’s current production averages 1.7 million barrels, resulting in a deficit of about 350,000 barrels that needs to be addressed.
To prevent a budget deficit and revenue shortfall, he mentioned that the Commission has initiated the 1 million barrel per day incremental production project, which requires all players in the upstream value chain to work within a unified economic system instead of operating in isolation, which limits their ability to maximize efficiency and economies of scale.
He explained that in 2025, the Commission is focused on achieving effective implementation of the 1M barrel production incremental initiatives; enhancing transparency of Hydrocarbon measurement accuracy through the implementation of the metering and advance cargo regulations.
Other objectives of the commission, as stated by him, include the digitalization of upstream regulatory activities to promote voluntary regulatory compliance for better effectiveness and efficiency, as well as analyzing and achieving optimal unit costs per barrel to enhance federation revenue.
“The Commission will continue to build on the progress made in implementing the Host Community Development Trust (HCDT) through the HostComply Portal, which is already delivering positive outcomes. Our dedication to reducing carbon emissions in our operations remains firm as we aim to guide the industry toward achieving the desired outcomes in this area.
“The Commission has created a template distributed to industry players to identify the needs of each stakeholder in the value chain, aiming to address the gaps that arise from these needs, which can be fulfilled by other players. This initiative is expected to foster synergy, networking, and leveraging the strengths of every participant in the value chain.
“This gathering is therefore timely, as its goal is to encourage collaboration and teamwork to achieve the government’s aspirations,” he remarked.
In his comments, Farouk Ahmed, the Chief Executive of the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA),
explained that over the years, the agency has taken intentional and proactive measures to safeguard and develop the industry, in alignment with the goals and provisions of the PIA 2021.
He noted that the government is making necessary moves to ensure the establishment of an open, competitive, and contestable market in the product supply chain, adding that the full deregulation of petroleum product pricing has created a level playing field, promoting healthy competition and investment opportunities.
He stated, “Similarly, our reforms have led to a sufficient supply and distribution of petroleum products across the country, allowing consumers to benefit from competitive prices and enhanced services. National energy security has been further strengthened with multiple supply sources.
“For the first time in many years, the country experienced the end-of-year festivities and the start of a new year without any supply disruptions or product shortages.”
