NUPRC Sets Focus on Frontier Basin Exploration and Transparent Licensing Rounds

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its commitment to prioritising frontier basin exploration and strengthening the competitive licensing process as part of efforts to drive sustainable growth in the nation’s oil and gas sector.

The move comes as Nigeria intensifies strategies to unlock new hydrocarbon reserves and attract foreign and local investments amid global energy transition concerns. The initiative, according to the regulator, is aimed at boosting reserves, ensuring energy security, and increasing the nation’s revenue base.

NUPRC Chief Executive, Gbenga Komolafe, who made this known at an industry stakeholders’ session in Abuja, explained that the commission has mapped out clear policy directions to deepen frontier basin exploration. He stressed that the development of untapped basins could play a decisive role in repositioning Nigeria as a leading hydrocarbon hub in Africa.

Komolafe noted that the Petroleum Industry Act (PIA) of 2021 has provided a robust legal and fiscal framework to support exploration activities in frontier basins. He highlighted that the Frontier Exploration Fund, derived from 30% of NNPC Limited’s profit oil and gas, would be effectively utilised to stimulate seismic data acquisition, exploratory drilling, and geological research across underexplored regions.

“Frontier exploration is a critical part of our strategy to expand reserves and sustain production. Nigeria cannot afford to lag behind in unlocking opportunities in these basins, particularly as global demand for oil and gas continues to evolve. Our objective is to build investor confidence, provide transparent processes, and ensure that exploration efforts translate into tangible economic benefits,” Komolafe said.

He further disclosed that the commission would continue to conduct transparent, competitive licensing rounds that ensure fairness, attract credible investors, and maximise value for the country. According to him, licensing rounds are being redesigned to align with global best practices, enhance efficiency, and guarantee that only serious and technically capable investors participate.

Industry observers say the renewed focus on licensing processes is particularly critical as Nigeria seeks to reverse declining oil production, which has hampered fiscal revenues in recent years. By creating a transparent and competitive environment, the NUPRC hopes to position Nigeria as a destination of choice for global investors despite the challenges posed by the energy transition.

Komolafe emphasised that the commission is committed to fostering a regulatory environment that balances profitability for investors with the national interest. He stated that measures have been introduced to ensure that licensing awards are not only commercially viable but also aligned with Nigeria’s developmental priorities.

According to him, one of the commission’s key priorities is to eliminate opacity in the allocation of oil blocks. He explained that the new process will feature open bidding, strict technical evaluation, and adherence to due process, thereby eliminating speculation and promoting accountability.

Stakeholders at the meeting welcomed the commission’s renewed drive, noting that frontier basins such as the Chad Basin, Benue Trough, Anambra Basin, Sokoto Basin, and Dahomey Basin hold significant potential that has not been fully tapped. Experts believe that discoveries in these regions could substantially boost Nigeria’s reserves, enhance domestic supply, and increase the country’s export capacity.

The Nigerian government has consistently reiterated that diversifying exploration activities across frontier basins would not only expand reserves but also stimulate economic growth in host communities through job creation, local content development, and infrastructure provision.

At the same time, energy analysts have cautioned that the commission must strike a balance between exploration activities and environmental sustainability. They stress that while hydrocarbon development remains vital for Nigeria’s economy, the global shift towards cleaner energy sources means that investments must be carefully managed to avoid stranded assets in the long run.

In response, Komolafe assured that the NUPRC would integrate sustainability principles into exploration and licensing activities. He emphasised that environmental impact assessments, community engagement, and strict adherence to environmental regulations will remain central to the commission’s mandate.

He also pointed out that while Nigeria is committed to achieving its climate commitments, the country must harness its abundant oil and gas resources as a strategic pathway for economic transformation. He said revenues from hydrocarbon development could be reinvested in renewable energy projects, providing a balanced approach to the energy transition.

Industry players have expressed optimism that the commission’s emphasis on transparency and frontier exploration could unlock billions of dollars in fresh investments. They noted that with global oil companies reassessing their portfolios, Nigeria must remain competitive by offering clear rules, attractive fiscal terms, and a stable regulatory environment.

Civil society groups, however, have called for greater accountability in the use of the Frontier Exploration Fund. They urged the NUPRC to ensure that the funds are judiciously utilised and not diverted, stressing that exploration should translate into meaningful benefits for Nigerians.

As discussions continue, the commission has reiterated that its overarching goal is to guarantee energy security, boost government revenue, and sustain Nigeria’s leadership position in Africa’s oil and gas landscape.

In conclusion, the NUPRC’s commitment to prioritising frontier basin exploration and ensuring transparent licensing processes underscores Nigeria’s determination to harness its hydrocarbon resources in a way that promotes growth, accountability, and sustainability. While challenges remain, the reforms have the potential to reposition Nigeria’s upstream sector for long-term competitiveness and resilience.