NUPRC, NNPC Move To Align Fees, Cut Costs In Nigeria’s Oil Industry
NUPRC, NNPC Commit to Stronger Collaboration
THE Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC) have pledged to strengthen collaboration aimed at improving efficiency, lowering operating costs, and enhancing Nigeria’s competitiveness in the global oil and gas industry.
This commitment followed a high-level meeting between the management teams of both institutions at the NUPRC corporate headquarters in Abuja on Friday. According to a statement issued by the Commission’s spokesperson, Eniola Akinkuotu, the discussions focused on harmonising regulatory processes and deepening cooperation in line with the objectives of the Petroleum Industry Act (PIA).
Reducing Costs Through Harmonised Fees
Speaking at the meeting, NUPRC Chief Executive, Engr. Oritsemeyiwa Eyesan, noted that both organisations are government institutions with shared responsibilities for ensuring a more efficient and sustainable upstream petroleum sector.
She explained that one of the Commission’s major priorities is reducing the cost of operations in Nigeria’s oil and gas industry, particularly by addressing the long-standing issue of multiple fees and rents charged to operators.
“Our focus is to reduce the cost of operations by harmonising fees and rents so that Nigeria can become more competitive as an investment destination,” Eyesan said.
She revealed that the Commission is already working closely with the Oil Producers Trade Section (OPTS) to streamline charges across the upstream sector.
“We are working with the industry on harmonising the fees and rents that we charge. The whole idea is to harmonise and reduce it to the barest minimum so that we can reduce the cost of operations,” she added.
Strengthening Measurement and Data Accuracy
Beyond fee harmonisation, the NUPRC chief executive highlighted efforts to improve hydrocarbon measurement and accounting, an area widely regarded as critical to transparency and revenue assurance.
According to her, the Commission has completed the first phase of auditing existing measurement infrastructure and is preparing to move into full implementation of standardised metering systems nationwide.
“We have done the first phase, which is to audit what we already have. The second phase, which will commence shortly, will be the real implementation of the metering standards,” Eyesan explained.
She said the programme would involve the establishment of a central data centre and the installation of standardised meters across all relevant locations, ensuring real-time data accuracy and accountability throughout the upstream value chain.
Host Community Trusts and Peaceful Operations
Eyesan also spoke on the Host Community Development Trusts (HCDTs), describing their implementation so far as successful, while stressing the importance of ensuring that the funds are fully utilised for their intended purpose.
According to her, effective deployment of host community funds would enhance peace in oil-producing areas and create a more stable operating environment for companies.
She urged stakeholders, including operators and the NNPC, to ensure strict adherence to the objectives of the HCDTs under the PIA.
Call for Participation in 2025 Licensing Round
In addition, the NUPRC chief encouraged the NNPC, as Nigeria’s national oil company, to actively participate in the ongoing 2025 oil licensing round and to deepen exploration activities across the country.
She noted that increased exploration is necessary to boost reserves, support production growth, and secure Nigeria’s long-term energy future.
NNPC Welcomes Improved Regulatory Relationship
In his remarks, NNPC Chief Executive Officer, Bayo Ojulari, emphasised the importance of a strong and collaborative relationship between the national oil company and the upstream regulator.
He congratulated Eyesan on her appointment as Chief Executive of the NUPRC, praising her leadership qualities and professional track record.
“Your antecedents, your track records, your integrity, your forthrightness and clarity excite the industry,” Ojulari said.
He commended the NUPRC for demonstrating exceptional leadership in regulation, transparency, and the creation of an enabling environment for investment.
Gas Expansion and Infrastructure Development
Ojulari disclosed that the NNPC recently launched the National Gas Master Plan, aimed at significantly increasing Nigeria’s gas production and utilisation.
He added that key gas infrastructure projects, including the OB3 and Ajaokuta–Kaduna–Kano (AKK) gas pipelines, are making steady progress and are critical to boosting domestic gas supply and industrial growth.
However, he acknowledged that high operating costs remain a major challenge to attracting fresh investments.
Cost Reduction Key to Energy Security
According to the NNPC chief, reducing the cost of operations is essential for strengthening Nigeria’s energy security and maintaining investor confidence, adding that this goal cannot be achieved without effective and pragmatic regulation.
He stressed that continued collaboration between the NNPC and the NUPRC would be central to unlocking the full potential of Nigeria’s oil and gas sector.
