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An energy governance expert, Prof. Josiah Danladi, has observed that the reforms initiated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Petroleum Industry Act (PIA) are beginning to transform Nigeria’s oil and gas sector towards greater transparency, accountability, and inclusive development.
While addressing attendees at a Citizens Connect Conference in Lagos, the academic highlighted that the current changes in the upstream industry are redefining Nigeria's management of its oil assets, enforcing compliance, and interacting with host communities.
However, he cautioned that maintaining this progress will require consistency and a strong political commitment.
He pointed out that the new regulatory framework has removed obscurity in production reporting and revenue monitoring, with electronic systems now tracking crude production and royalty payments in real-time.
While he emphasized that these reforms should not be viewed as a one-time achievement, he asserted that the framework could help resolve the long-standing conflicts in the Niger Delta.
“The era of manual reporting and discretion is being supplanted by data-driven governance. We now have systems that guarantee accuracy, accountability, and traceability for every barrel produced,” he stated.
Danladi elaborated that the Host Community Development Trusts (HCDTs) have enhanced community involvement and alleviated long-standing tensions in the Niger Delta, describing them as a model for inclusive governance.
He also mentioned that the Gas Flare Commercialisation Programme has transformed what was previously an environmental issue into an economic opportunity, attracting new investments and creating jobs.
“Gas, as the transition fuel, is rapidly becoming a growth driver for the economy. Investors are now entering the market not only for profit but also to support cleaner energy objectives,” he remarked.
Danladi emphasized that the reforms have rendered Nigeria’s regulatory environment more predictable and appealing to international investors, citing enhanced global confidence in the sector.
“These reforms must not be regarded as a one-off success. They are part of a long-term process that requires safeguarding against policy reversals,” he concluded.
Frequently Asked Questions
What are the key reforms introduced by the NUPRC?
The key reforms include the establishment of a new regulatory framework that enhances transparency in production reporting and revenue monitoring, as well as the implementation of electronic systems for real-time tracking of crude output and royalty payments.
How do these reforms impact the Niger Delta communities?
The reforms, particularly through the Host Community Development Trusts (HCDTs), have increased community participation and reduced long-standing tensions, providing a model for inclusive governance.
What economic opportunities have arisen from these reforms?
The Gas Flare Commercialisation Programme has turned environmental challenges into economic opportunities by attracting investments and creating new jobs, positioning gas as a transition fuel for economic growth.
