NUPRC Gazettes 21 New Regulations to Boost Upstream Oil Investment

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has officially gazetted 21 new regulatory frameworks aimed at revitalising the nation’s upstream petroleum sector and attracting substantial local and foreign investments.

Announcing the development in Abuja, the Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the new regulations were crafted in line with the Petroleum Industry Act (PIA) 2021 and are targeted at creating a predictable, efficient, and investor-friendly environment in Nigeria’s upstream oil and gas industry.

According to Komolafe, the gazetted regulations will serve as a critical tool for enhancing transparency, accountability, and performance in exploration and production activities across the country. They are also designed to address legacy challenges that have hindered sectoral growth and deterred capital inflow in recent years.

“These 21 regulations mark a significant milestone in the implementation of the PIA and in our commitment to provide a clear and consistent regulatory framework for upstream operations. The overarching goal is to stimulate investment, improve operational efficiency, and ensure optimal exploitation of our hydrocarbon resources,” Komolafe said.

The newly gazetted regulations cover various aspects of upstream operations, including licensing, host community development, health and safety, royalties, metering, drilling, production, decommissioning, and environmental management. Others include field development guidelines, unitisation, data submission, and geophysical activities.

Komolafe explained that the comprehensive nature of the regulations reflects the Commission’s commitment to removing ambiguities and uncertainties that have previously plagued investors and operators. He noted that stakeholders across the oil and gas value chain were consulted extensively during the formulation process to ensure alignment with global best practices.

“Investor confidence is built on certainty and clarity, and that is exactly what we are providing with these gazetted instruments. They are not only detailed and enforceable but also flexible enough to accommodate innovation and evolving industry realities,” he added.

One of the notable regulations is the Host Community Development Regulation, which mandates licensees and lessees to contribute a percentage of their operating expenditure to a host community trust fund. This is expected to reduce conflict in oil-producing areas and foster a more peaceful business environment.

In addition, the Decommissioning and Abandonment Regulation outlines the technical and financial obligations of oil companies when relinquishing assets, ensuring that environmental and safety standards are upheld even at the end of project life cycles.

Industry players have welcomed the move, saying it could lead to increased exploration and production activities, particularly in underdeveloped or marginal fields. They also noted that by addressing regulatory uncertainty, the Commission is making Nigeria more attractive to investors amid growing competition from other oil-producing nations.

A petroleum economist, Dr. Musa Alao, described the gazetted regulations as “long overdue” and a “critical step toward restoring investor trust.” According to him, Nigeria has suffered significant capital flight in the oil and gas sector due to a previously opaque regulatory regime.

“These new rules show a willingness by the government to reform the sector genuinely. If enforced transparently, they could unlock billions in stalled or prospective investments,” Alao said.

Similarly, a senior official at one of the International Oil Companies (IOCs) operating in Nigeria noted that the certainty provided by the gazetted rules would be instrumental in future investment decisions. “Our boardrooms don’t like uncertainty. The clearer the rules, the faster we can move on major capital projects,” the official remarked.

The NUPRC has also pledged to embark on widespread sensitisation to ensure that operators, host communities, and other stakeholders fully understand the new regulations. Training workshops, online resources, and consultation forums will be deployed to build capacity and promote compliance.

In furtherance of its mandate, the Commission disclosed plans to automate regulatory processes through a digital platform called the Regulatory Interface Automation System (RIAS). This system will allow operators to make submissions, receive approvals, and track applications in real time—thus eliminating delays and improving operational efficiency.

Meanwhile, the Commission has called on oil and gas operators to embrace the new framework and ensure full compliance. Komolafe warned that failure to adhere to the gazetted regulations would attract appropriate sanctions, including suspension of operations or licence revocation.

He stressed that while the government is eager to support investment and growth, it will not compromise on the standards required to safeguard the environment, communities, and national interest.

With the gazetting of these 21 regulations, Nigeria appears poised to reposition its upstream oil and gas sector as a globally competitive destination for energy investments. Stakeholders are hopeful that with consistent enforcement and continued policy support, the reforms will translate into increased output, job creation, and improved government revenue in the coming years.