The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPCL) have agreed to strengthen their cooperation, aiming to improve efficiency and reduce operating costs across Nigeria’s oil and gas sector.
The resolution followed a meeting between the management teams of both organisations at NUPRC’s headquarters in Abuja, according to a statement issued by the commission’s spokesperson, Eniola Akinkuotu.
Plan to Cut Fees and Improve Competitiveness
Speaking at the meeting, NUPRC Chief Executive, Oritsemeyiwa Eyesan, said both institutions share a common mandate as government entities and must work together to enhance the competitiveness of Nigeria’s upstream industry.
She explained that the commission is reviewing existing fees and rents to streamline charges and lower the cost burden on operators. According to her, NUPRC is engaging the Oil Producers Trade Section (OPTS) to address concerns around multiple levies imposed on companies.
Eyesan said the objective is to harmonise fees and reduce them to the minimum necessary level, thereby making Nigeria’s oil and gas environment more attractive to investors.
In addition, she disclosed that the commission is strengthening hydrocarbon measurement and accounting systems. The first phase of the initiative involved auditing existing infrastructure. The next phase, she noted, will focus on implementing uniform metering standards nationwide. This stage will include establishing a central data centre and standardising meters across operational locations.
On host community funding, Eyesan described the Host Community Development Trust (HCDT) framework as largely successful. However, she emphasized the importance of ensuring that allocated funds are effectively deployed to support community development, enhance relations, and foster a more stable operating environment.
She also encouraged NNPCL to participate actively in the ongoing 2025 licensing round and expand exploration activities.
NNPC Seeks Stronger Regulatory Alignment
In his remarks, NNPCL Group Chief Executive Officer, Bayo Ojulari, emphasised the importance of closer alignment between the national oil company and the upstream regulator.
Ojulari commended Eyesan’s leadership, citing her experience and track record as positive signals for the industry. He said NUPRC has continued to demonstrate strong regulatory oversight, promote transparency, and create an enabling climate for investment.
The NNPCL chief highlighted recent progress under the National Gas Master Plan, noting that projects such as the OB3 and AKK gas pipelines are advancing. He added that expanding gas infrastructure remains central to boosting domestic supply and strengthening energy security.
However, Ojulari stressed that reducing operational costs is critical to attracting new investment into Nigeria’s upstream sector. Achieving that objective, he said, requires effective collaboration with the regulator to ensure policies remain commercially viable while maintaining industry standards.
The meeting signals a coordinated effort by both institutions to address structural cost issues and reinforce Nigeria’s position as a competitive oil and gas investment destination.