Nigeria’s upstream petroleum regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPC Ltd) have agreed to deepen institutional collaboration aimed at improving operational efficiency, lowering production costs and strengthening Nigeria’s competitiveness in the global oil and gas industry.
The renewed commitment emerged from a high-level meeting between the management teams of both organisations at the NUPRC’s corporate headquarters in Abuja, signalling a coordinated push to align regulation, commercial operations and investment priorities across the upstream sector.
Industry stakeholders say the partnership is critical at a time when Nigeria is grappling with rising operational costs, declining production levels, capital flight and intense competition from other hydrocarbon-producing nations.
Operational Efficiency in Nigeria’s Oil and Gas Sector Takes Priority
Speaking at the meeting, Commission Chief Executive of NUPRC, Engr. Oritsemeyiwa Eyesan, said the Commission and NNPC share a common mandate as government institutions and must leverage their alignment to unlock greater value for the industry.
According to Eyesan, the current phase of sector reform presents a “golden opportunity” to deliver measurable improvements in operational efficiency in Nigeria’s oil and gas sector, particularly by addressing structural bottlenecks that have long discouraged investment.
“As major instruments of government in the industry, we are aligned toward the same goal, and this alignment is pivotal. We must not lose this golden opportunity,” she said.
Eyesan noted that one of the Commission’s key priorities is reducing the cost of doing business by addressing the long-standing issue of multiple fees, charges and rents imposed on operators.
Harmonising Fees to Improve Competitiveness
The NUPRC boss disclosed that the Commission is working closely with the Oil Producers Trade Section (OPTS) and other industry stakeholders to harmonise regulatory fees and rents, a move expected to significantly reduce operators’ cost burden.
She explained that Nigeria’s upstream sector has historically been weighed down by fragmented and overlapping charges that erode project economics and weaken the country’s competitiveness.
“We are working with the industry on harmonising the fees and rents that we charge. The whole idea is to reduce them to the barest minimum so that we can lower operational costs,” Eyesan stated.
Analysts say successful harmonisation could improve Nigeria’s standing relative to peer producers such as Angola, Guyana and Brazil, which have attracted sustained investment through more predictable cost structures.
Data, Metering and Transparency as Efficiency Drivers
Beyond cost reduction, Eyesan emphasised that improving measurement accuracy and hydrocarbon accounting remains central to boosting operational efficiency in Nigeria’s oil and gas sector.
She revealed that the Commission has completed the first phase of auditing existing metering infrastructure and is preparing to roll out full implementation of national metering standards.
“The second phase, which will commence shortly, will be the real implementation of the metering standards. This programme will involve establishing a data centre and standardising all meters across our locations,” she explained.
Industry experts say accurate measurement is critical not only for revenue assurance but also for planning, production optimisation and investor confidence.
Host Community Trusts and Operating Environment
Eyesan also highlighted the progress recorded under the Host Community Development Trust (HCDT) framework established by the Petroleum Industry Act (PIA), describing it as a success story that must be consolidated.
She stressed the need to ensure that HCDT funds are deployed strictly for their intended purposes, warning that misuse could undermine community trust and disrupt operations.
According to her, effective utilisation of host community funds would enhance peace in oil-producing areas, reduce disruptions and ultimately improve operational efficiency for operators.
The NUPRC chief further encouraged NNPC to actively participate in the ongoing 2025 licensing round, stressing the importance of deepening exploration to grow reserves and sustain production over the long term.
NNPC Seeks Stronger Regulator–Operator Alignment
In his remarks, Group Chief Executive Officer of NNPC Ltd, Mr. Bayo Ojulari, underscored the importance of a strong, transparent and cooperative relationship between the national oil company and the regulator.
Ojulari praised Eyesan’s leadership, describing her appointment as a boost to industry confidence.
“Your antecedents, your track record, your integrity and clarity excite the industry,” he said.
He noted that the NUPRC has demonstrated exceptional leadership by promoting transparency and creating an enabling regulatory environment that supports investment and operational excellence.
Gas Expansion and Infrastructure Development
Ojulari disclosed that NNPC recently launched a National Gas Master Plan designed to unlock Nigeria’s vast gas resources and position the country as a leading gas-based economy.
He said strategic infrastructure projects such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta–Kaduna–Kano (AKK) gas pipelines are progressing steadily and will play a critical role in boosting domestic gas utilisation and energy security.
The NNPC GCEO formally presented a copy of the Gas Master Plan to the NUPRC chief, reinforcing the importance of regulatory alignment in delivering large-scale infrastructure projects.
Reducing Costs to Attract Investment and Enhance Energy Security
Ojulari, however, cautioned that Nigeria’s ambition to attract fresh investments and strengthen energy security hinges on reducing operational costs across the value chain.
He stressed that this objective cannot be achieved without effective regulatory stewardship.
“As the national energy company operating commercially under the Petroleum Industry Act, our success is intertwined with regulatory stewardship. We believe that deepening this partnership will greatly enhance our ability to unlock more value for Nigeria,” he said.
Energy economists note that Nigeria’s average upstream production costs remain higher than many competing jurisdictions, making collaboration between the regulator and the national oil company essential.
Industry Outlook
Market observers believe the renewed collaboration between NUPRC and NNPC could mark a turning point if it leads to tangible reforms in cost structures, data management, licensing transparency and infrastructure delivery.
They argue that sustained cooperation is vital for restoring investor confidence, reversing production decline and positioning Nigeria as a competitive destination for upstream capital.
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