NUPRC tasks new PPL holders on timely investment as Nigeria eyes 2m bpd by 2027

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern directive to newly minted holders of Petroleum Prospecting Licenses (PPLs), ordering them to fast-track asset development or face forfeiture under the “drill or drop” provisions of the Petroleum Industry Act (PIA).

The regulator also urged the investors to prioritise corporate social responsibility to guarantee operational harmony, warning that strict adherence to host community obligations is non-negotiable for success in Nigeria’s evolving oil and gas landscape.

Oritsemeyiwa Eyesan, Commission Chief Executive of the NUPRC, gave the charge in Abuja on Friday at the formal signing ceremony for the second batch of winners from the 2022/2023 Mini Bid Round and the 2024 Licensing Round.

“As licensees, you are expected to execute your approved work programmes diligently, honour your financial commitments, and comply fully with the provisions of the PIA, the applicable regulations, and these contractual documents,” Eyesan said. “The Commission equally expects the highest standards of health, safety, environmental protection, and responsible engagement with host communities.”

The federal government is banking on the success of these licensing rounds to reverse declining investment trends and bolster national energy security.

According to the NUPRC boss, the newly awarded blocks are expected to aggressively stimulate exploration activities and pull in fresh capital to accelerate the development of Nigeria’s hydrocarbon resources.

The immediate target, according to the Commission, is aligned with the federal government’s strategic ambition to ramp up Nigeria’s crude oil production to 2 million barrels per day (bpd) by 2027, with a long-term projection of hitting 3 million bpd by 2030.

To facilitate this, the regulator promised to remove bureaucratic bottlenecks. Enorense Amadasu, Executive Commissioner, Development and Production, noted that the NUPRC has already streamlined its processes to accelerate permit approvals, improving the ease of doing business for the new entrants.

Behind the optimism, however, lies a strict regulatory framework, as Olayemi Adeboyejo, Commission Secretary and Legal Adviser, reminded the awardees that the PIA leaves no room for speculative asset holding.

Under the “drill or drop” policy, operators who fail to meet their agreed work programmes within the stipulated timelines risk losing their licences.

Adeboyejo also directed the companies to immediately establish their respective Host Community Development Trusts (HCDTs) to avert the communal friction that historically plagues upstream operations. She further counselled operators to embrace alternative dispute resolution (ADR) mechanisms over prolonged litigation when conflicts arise with regulators or joint-venture partners.

Companies that were presented with their licences at the venue include Biswal Oil and Gas Ltd, Dewayles International Ltd, First E&P development Co.Ltd, Panout Oil and Gas Ltd, R28 Holdings Ltd and Hakilat Oil and Gas Consortium.

Broron Energy Limited, Petroli Energy Marketing and Supply Limited, Sahara Deepwater Resources Limited and Tulcan Energy E&P had received their licences earlier on July 8, 2026.