The Nigeria’s Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has expressed optimism about the gains available to Nigeria’s Petroleum sector as a result of President Donald Trump’s anticipated pro-oil and gas policies.
Gbenga Komolafe, Commission Chief Executive of NUPRC, disclosed this during the Petroleum Industry Stakeholders forum held in Abuja on Thursday.
According to Komolafe, it was asserted that the energy sector fund climbed by nearly 4% the day after Donald Trump’s 2024 Presidential victory. This rally, for him, reflects market optimism for fossil fuel investments under Trump’s anticipated pro-oil and gas policies.
“In contrast, renewable energy companies faced declines, with U.S. solar giant First Solar dropping over 10%. These market reactions hint that Trump’s second term will prioritise traditional energy sectors, potentially limiting support for renewables while advancing oil and gas expansion.
“This is good news for the Nigerian upstream as we do not exist in isolation. This is bringing tremendous hope and renew vigour to focus on our intentions to develop the industry,” he said.
Komolafe noting that the 2025 budget is predicated on crude oil production of 2.062M barrels @$75 per barrel, said that the Country’s current production is averaging 1.7M barrels leaving a deficit of about 350,000 barrels to be bridged.
To avert budget deficit and revenue gap, he said that the Commission had launched the project 1M barrel per day incremental production initiative that mandates every player within the upstream value chain to operate in one stop shop economic system as against operating in silos thereby failing to leverage optimum capability and economic of scale.
He explained that in 2025, the Commission is focused on achieving effective implementation of the 1M barrel production incremental initiatives; enhancing transparency of Hydrocarbon measurement accuracy through the implementation of the metering and advance cargo regulations.
Other targets of the commission according to him include: digitalization of upstream regulatory activities to engender willful regulatory compliance for effectiveness and efficiency; interrogating and achieving optimum unit cost per barrel for increased federation revenue.
“The Commission will continue to maximize the gains already achieved in the implementation of the Host Community Development Trust (HCDT) using the HostComply Portal which is already yielding positive results. Our commitment to reducing carbon footprint in our operations remains unchanged as we are poised to drive the industry to achieve the desired results in this regard.
“The Commission has developed a template sent out to the industry players to identify the needs of every player within the value chain with a view of meeting the gaps arising from the needs of each player which can be met by another player. This is expected to create synergy, networking and leveraging on the capabilities of every player within the value chain.
“This gathering therefore is timely as the objective is to foster collaboration and team effort towards achieving the aspiration of the government,” he said.
In his remarks, Farouk Ahmed, the Authority Chief Executive, Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) explained that over the years, the agency has taken deliberate and proactive actions to protect and grow the industry, in line with the aspirations and provisions of the PIA 2021.
Read also: Reps direct NUPRC to provide details of crude production, sales
According to him, the Government is taking necessary steps to ensure the evolution of an open, competitive and contestable market in the product supply chain adding that the full price deregulation of petroleum products market has enabled the creation of a level playing field fostering a healthy competition and enabling investment opportunities.
He said, “In the same vein, our reform has occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services. The National Energy security has been further enhanced with multiple sources of supply.
“For the first time in many years, the Country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have lead to fuel queues.
“The contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced. Equally, the emerging competitive market environment, downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide.”
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