An assessment of the implementation of the Petroleum Industry Act, PIA, driven by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has highlighted improved engagement with host communities by oil companies.
The assessment report, released by the Renewed Hope Ambassadors Network, RHAN, emphasized the role of the NUPRC, under the leadership of Engr. Gbenga Komolafe, in driving reforms in the petroleum industry, in line with the provisions of the PIA.
According to RHAN’s assessment report, the efforts of the NUPRC in driving the PIA has led to improved operational effectiveness, reduced misconduct and increased revenue generation for the Nigerian government.
The report equally highlighted the Commission’s efforts in streamlining regulatory processes, enhancing transparency, and promoting a more investment-friendly environment.
National secretary of RHAN, Dr. Opialu Fabian, noted that initiatives introduced by NUPRC, such as technology-driven regulation, review of crude oil handling agreements, and commitment to local content development, have helped to curb oil theft, promote gas utilization, and attract investment in deepwater exploration.
RHAN specifically commended the agency’s commitment to local content development, which has strengthened engagement with host communities.
“This has ensured that the benefits of oil production reach local populations, promoting socio-economic development and reducing conflicts,” the assessment report noted.
However, the report acknowledged challenges still facing the NUPRC, including oil theft, regulatory bottlenecks, and security threats.
“Undoubtedly, Nigeria’s oil and gas sector has undergone a dramatic transformation since the petroleum Industrial Act (PIA) was passed.
“It has contributed to the establishment of a well-organized regulatory environment with the goal of improving investment opportunities, efficiency, and transparency.
“In addition to ensuring that regulatory oversight is reinforced to support sustainable growth in the upstream petroleum sector, the establishment of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been crucial in advancing these reforms.
“However, with Engineer Gbenga Komolafe strategic foresight in increasing operational efficiency in NUPRC, it can be conclusively said that, better than before, an atmosphere that is favorable to investment and economic expansion now exist.
“Despite putting policies like security enhancement, digitization, stakeholder engagement, and revenue optimization in place, challenges such as bureaucratic hurdles, host community concerns, and oil theft, though now at minimal, still remain issues that require continuous attention and strategic interventions.
“We are convinced that with consistent implementation of reforms and a commitment to global best practices, the PIA and the efforts of the NUPRC will continue to shape Nigeria’s oil and gas industry, ensuring it remains a vital contributor to national economic development.”