Local operators now accounts for over 30% of Nigeria’s oil production -NUPRC
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that implementation of the petroleum industry Act has created strong governance structure, creating improved participation of local operators in Nigeria’s Petroleum industry.
Gbenga Komolafe, Commission Chief Executive of NUPRC stated this at the 2025 International Conference on Hydrocarbon Science and Technology, organised by Petroleum Training Institute in Abuja on Wednesday.
He explained that Africa, despite holding over 125 billion barrels of proven oil reserves and more than 620 trillion cubic feet of gas, have more than 600 million people lacking access to electricity due to poor goverance.
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Komolafe who was represented by Kelechi Ofoegbu, executive commissioner, corporate Services & Administration at the NUPRC, however noted that Nigeria, under the Tinubu-led administration, has charted a renewed national vision of governance built on trust, transparency and stewardship through the enactment of the Petroleum Industry Act in 2021.
“The PIA is more than a legislation; it is Nigeria’s energy governance reform. It established a modern, transparent, and globally competitive framework that enshrines openness, efficiency, and fairness in the management of petroleum resources.
“This commitment to transparency has also rewritten another chapter of our national story: the rise of indigenous participation in the oil and gas sector. Today, local operators account for over 30 percent of national ail output. They are building infrastructure, building and managing terminals, and creating jobs across our economy.
“This transformation did not happen by chance. It was made possible by a level playing field: transparent licensing, access to data, fair fiscal frameworks, and regulatory consistency, all anchored in governance,” he said.
He also stated that across flare sites in Nigeria, gas that once burned wastefully into the sky is now being positioned for full utilisation to power homes, drive small industries, and provide clean cooking energy for millions.
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He reiterated the Commission’s commitment to ensuring that Nigeria achieve complete end to gas flaring by 2030.
“Through the Nigerian Upstream Petroleum Regulatory Commission’s flare gas commercialisation initiatives, the nation is making steady progress toward the Federal Government’s goal of achieving complete flare-out by 2030,” he added
Also speaking at the conference, Felix Ogbe, Executive Secretary, Nigerian Content Development and Monitoring Board said that transparent, accountable and predictable governance systems are essential for unlocking investments and ensuring that resource wealth translates into development outcomes.
He noted that Nigeria has also undertaken key reforms through the PIA, providing a clearer governance framework and fiscal regime that balances investor confidence with national aspirations.
“One of the most powerful tools for balancing growth, environment and governance is Local Content Development. Nigeria’s experience offers important lessons. Since the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in 2010, the country has made remarkable progress in retaining value in-country.
“In-country fabrication capacity has grown significantly, with major yards delivering complex offshore structures that were previously imported. Indigenous companies now own and operate a significant share of onshore and shallow water assets.
“Over 50,000 direct jobs have been created through local content interventions. Nigeria has moved from less than 5 percent local content in 2010 to over 54 percent today in certain segments of the industry.”
This deliberate strategy, according to the executive secretary has ensured that oil and gas activities stimulate domestic manufacturing, skills development, technology transfer, and growth of small businesses.
