Nigeria’s oil and gas upstream sector has recorded sweeping reforms under President Bola Ahmed Tinubu, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) driving a data-driven transformation that has yielded more than ₦12.25 trillion in revenue within two years.
Anchored on the Petroleum Industry Act (PIA), the reforms have not only strengthened transparency and accountability in the sector but also revived investor confidence, repositioning Nigeria as an emerging energy hub on the continent.
A cornerstone of the new order is the deployment of electronic production reporting platforms, which allow real-time tracking of crude output and cargo declarations. For decades, Nigeria struggled with uncertainty around production volumes, but regulators now say “the data speaks for itself.”
The Commission has also introduced robust frameworks for flare gas measurement, royalty tracking, and environmental enforcement, cutting out leakages that once drained national revenues.
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Industry experts note that this deliberate embrace of transparency has helped to restore global confidence in Nigeria’s oil and gas operations.
Subsidy removal frees up resources
The reforms were further reinforced by the removal of fuel subsidy, a politically risky move that has freed up resources for developmental priorities. According to federal data, allocations to states and local governments have risen by more than 200%, while funds have been channelled into road construction, hospitals, power projects, student loans, and increased NYSC allowances.
This fiscal shift, combined with tighter regulatory oversight, is beginning to reset the economics of Nigeria’s petroleum industry and reduce dependence on imported products.
One of the most visible impacts of the PIA has been the activation of Host Community Development Trusts (HCDTs). For the first time, oil-producing communities are directly benefiting from the industry’s revenues.
So far, more than ₦358 billion has been remitted into the trusts, funding over 500 projects in education, healthcare, road construction, and youth empowerment across the Niger Delta.
Analysts describe this as a shift from “afterthought inclusion” to genuine partnership, ensuring that communities living with the consequences of extraction share in its benefits.
The reforms also prioritise Nigeria’s gas reserves as the country’s transition fuel. Through the Gas Flare Commercialisation Programme, investors are turning environmental liabilities into economic opportunities, reducing waste while creating jobs and safeguarding the environment.
This approach positions Nigeria to leverage gas for both domestic power supply and regional exports, in line with global energy transition goals.
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Scholar hails Tinubu’s leadership
Adding his voice to the growing commendations, energy governance scholar Prof. Josiah Danladi described the changes as a “bold and transformative recalibration” of Nigeria’s upstream oil and gas sector.
Speaking at the Citizens Connect Conference in Lagos, Danladi said Nigerians were increasingly satisfied with the performance of NUPRC under the leadership of Engr. Gbenga Komolafe.
“For decades, the oil and gas sector symbolised both our promise and our pain,” he said. “Yet today, there is a new story unfolding — a story of reform, renewal, and restoration. What Nigerians are witnessing is not luck; it is leadership — structured, deliberate, and data-driven.”
Danladi highlighted the unprecedented ₦12.25 trillion revenue generated in just two years, describing it as evidence of political will meeting professional excellence.
He also stressed that the benefits of subsidy removal, host community funding, and transparency mechanisms are translating into better living conditions for citizens, in line with Tinubu’s Renewed Hope Agenda.
“These achievements did not emerge in a vacuum. They are the product of a reform-minded administration that prioritised competence over complacency. But every reform is a journey, not an event — and journeys can be interrupted,” he warned.
“The truth is that what we have gained in the last two years can easily be lost if the focus shifts from reform to rhetoric. Nigeria cannot afford to go backwards. We must protect this momentum by ensuring that the same political will that birthed these achievements is renewed in 2027.”
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