NUPRC, NNPC Pledge Fee Cuts to Boost Nigeria’s Oil and Gas Competitiveness
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC) have agreed to work together to reduce regulatory fees, rents and other cost burdens in the oil and gas sector, as part of efforts to improve Nigeria’s global competitiveness and attract fresh investment.
The commitment was reached during a high-level meeting between the leadership of both institutions in Abuja, where discussions focused on harmonising fees and eliminating multiple charges that have long increased operating costs for upstream operators. Speaking after the meeting, NUPRC Chief Executive, Gbenga Komolafe, said the commission is prioritising cost efficiency under the Petroleum Industry Act (PIA), noting that excessive and duplicated fees discourage investment and slow sector growth. He said the regulator is already engaging industry stakeholders to streamline charges and ensure that fees are reduced to the barest minimum while maintaining effective oversight. Komolafe added that the cost-reduction drive also covers improvements in hydrocarbon measurement and accounting, including enhanced metering standards and data management, aimed at boosting transparency, accuracy and investor confidence in Nigeria’s upstream operations. On his part, NNPC Group Chief Executive Officer, Bayo Ojulari, welcomed the collaboration, describing it as critical to lowering the cost of doing business in Nigeria’s oil and gas industry. He said aligning regulatory requirements and reducing rents would help operators free up capital for exploration, production and infrastructure development. Ojulari stressed that a more competitive cost structure is necessary for Nigeria to attract new investments, grow crude oil output, and accelerate gas development in line with national energy security goals. He also reaffirmed NNPC’s commitment to working closely with regulators to deliver the objectives of the PIA. Industry analysts say the joint effort by NUPRC and NNPC aligns with the federal government’s broader reform agenda to reposition Nigeria as a preferred destination for oil and gas investment, amid rising competition from other African and global producers.
