Can NUPRC-NNPC alignment reset Nigeria’s upstream?

Mkpoikana Udoma

Port Harcourt — Nigeria’s upstream oil and gas sector may be on the cusp of a quiet but consequential reset, following renewed alignment between the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and the Nigerian National Petroleum Company Limited, NNPCL, two institutions whose relationship will largely determine whether the Petroleum Industry Act, PIA, delivers its long-promised dividends.

At a strategic meeting held at NUPRC headquarters recently, both institutions signalled a common resolve: reduce operational costs, enhance efficiency, restore investor confidence, and attract fresh capital into a sector grappling with global competition and domestic operational challenges.

NUPRC and NNPCL, Regulator and Operator
The NUPRC is the government’s regulatory authority responsible for licensing, monitoring, and enforcing compliance across Nigeria’s upstream oil and gas sector.

Its mandate includes ensuring operational transparency, enforcing measurement and hydrocarbon accounting standards, and supporting the Host Community Development Trust framework.

The NNPC Ltd, meanwhile, operates commercially under the PIA, managing Nigeria’s oil and gas assets while executing strategic projects across exploration, production, and gas infrastructure. The company’s performance is closely tied to regulatory efficiency and operational clarity, making its relationship with NUPRC pivotal to upstream growth.

A Regulator and Operator Re-Align
For years, investors have pointed to regulatory fragmentation, rising costs and strained regulator–operator relations as structural weaknesses in Nigeria’s upstream. The meeting at NUPRC headquarters suggested an attempt to recalibrate that dynamic.

Commission Chief Executive of NUPRC, Mrs. Oritsemeyiwa Eyesan, framed the engagement as a moment of institutional convergence rather than rivalry.

“As major instruments of the government in the industry, we are aligned toward the same goal and I think this is pivotal, and we must not lose this golden opportunity,” Eyesan said.

Her message was clear: under the PIA, the regulator and the national oil company are expected to work in tandem to grow production, attract capital and stabilise the operating environment.

The Cost Problem at the Heart of Nigeria’s Upstream
At the centre of the discussions was a long-standing concern, Nigeria’s high cost of doing business in upstream operations, which has eroded competitiveness against peer jurisdictions in Africa and beyond.

Eyesan disclosed that the NUPRC is working closely with industry groups, including the Oil Producers Trade Section, OPTS, to address the multiplicity of fees and rents imposed on operators.

“We are working with the industry on harmonizing the fees and rents that we charge. The whole idea is to harmonise and reduce it to the barest minimum so that we can reduce the cost of operations,” she said.

For investors weighing multi-billion-dollar upstream decisions, cost predictability is often as important as geology. Analysts say any meaningful reduction in fiscal and regulatory overheads could significantly improve Nigeria’s investment appeal.

Metering, Data and the Politics of Transparency
Beyond cost, the meeting also spotlighted measurement and hydrocarbon accounting, an area critical to revenue assurance, production credibility and investor trust.

Eyesan revealed that the Commission is moving from audits to full implementation of metering standards nationwide.

“We have done the first phase, which is to audit what we already have. The second phase, which will commence shortly, will be the real implementation of the metering standards, including a central data centre with standardized meters across all locations,” she stated.

SweetCrude Reports notes that transparent measurement systems are not just technical upgrades but political signals, demonstrating seriousness about accountability in an era of heightened scrutiny over oil revenues.

Host Communities, Peace and Production Stability
Another pillar of the PIA reforms discussed was the Host Community Development Trust, HCDT, framework, designed to address decades of tension between oil companies and producing communities.

While acknowledging progress, Eyesan warned that peace would only be sustained if funds are properly utilised.

She stressed that effective deployment of HCDT resources would improve community relations, reduce disruptions and strengthen the operating environment, particularly in sensitive production corridors.

NNPC’s Commercial Mandate Meets Regulation
For NNPC Ltd., operating as a commercial entity under the PIA has sharpened its interest in regulatory efficiency and cost discipline.

Group Chief Executive Officer, Engr. Bayo Ojulari, underscored the interdependence between the national oil company and the regulator.

“As the national energy company operating commercially under the Petroleum Industry Act, our success is intertwined with the regulatory stewardship, which we are confident will be taken to the next level,” Ojulari said.

He praised Eyesan’s leadership, adding:
“Your antecedents, your track record, your integrity and your clarity excite the industry.”

Gas as the Next Growth Frontier
Ojulari also used the meeting to highlight NNPC’s National Gas Master Plan, positioning gas as a cornerstone of Nigeria’s energy security and economic transition.

He cited progress on critical infrastructure such as the OB3 and Ajaokuta–Kaduna–Kano, AKK, gas pipelines, describing them as enablers of domestic gas utilisation and industrial growth.

However, he cautioned that gas ambitions, like oil, would stall without a deliberate push to lower costs.

“There is a need to reduce the cost of operation in Nigeria to attract investments and boost energy security, and this cannot be achieved without the NUPRC’s regulatory role,” he said.

Licensing Rounds and the Search for Capital
Eyesan encouraged NNPC Ltd. to deepen exploration by participating actively in the 2025 licensing round, as Nigeria seeks to replenish reserves and sustain production.

With global capital increasingly selective, industry watchers say the success of future licensing rounds will depend less on acreage availability and more on regulatory coherence, cost discipline and execution certainty.

The Test Ahead
While the Abuja meeting produced strong rhetoric and shared priorities, the real test lies ahead, and it lies in implementation.

For Nigeria’s upstream sector, the alignment between NUPRC and NNPC could mark a turning point, translating policy reforms into bankable outcomes. Or it could join a long list of well-intentioned engagements undone by execution gaps.

For now, the message to investors is clear: Nigeria wants to compete again on cost, clarity and confidence. Whether the sector delivers on that promise will define its energy future.