Regulator Moves to Cut Costs in Nigeria’s Oil and Gas Sector

The Nigerian Upstream Petroleum Regulatory Commission has announced it is intensifying efforts to reduce operating costs across the country’s oil and gas industry by harmonising regulatory fees and rents.

The move, disclosed in a statement on Friday, forms part of a broader push to enhance the sector’s competitiveness and attract new investment.

According to the commission, the decision followed a management meeting between the NUPRC and the Nigerian National Petroleum Company Limited held at the NUPRC headquarters in Abuja.

Speaking at the meeting, the Commission Chief Executive, Oritsemeyiwa Eyesan, stated that the NUPRC is deliberately driving reforms to lower operational costs, which have long concerned both international and local operators.

“We are focused on reducing the cost of operations by harmonising fees and rents to make Nigeria’s oil and gas sector more competitive,” Eyesan said.

She explained that the commission is engaging with industry players, including the Oil Producers Trade Section, to streamline multiple regulatory charges in line with global standards and the Federal Government’s goal of boosting production and investment.

The initiative responds to strong calls from indigenous producers, such as the Independent Petroleum Producers Group, which recently warned that overlapping fees and high costs are eroding Nigeria’s advantage compared to other oil-producing nations.

Eyesan also highlighted ongoing work to strengthen hydrocarbon measurement and metering systems, which she described as critical for revenue assurance and transparency. She added that the NUPRC is progressing with the implementation of the Host Community Development Trust framework under the Petroleum Industry Act to promote peace and reduce operational disruptions.

In his remarks, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, welcomed the NUPRC’s efforts and stressed the importance of close collaboration between the regulator and the national oil company.

Ojulari presented the newly launched National Gas Master Plan to the commission and reiterated the need to lower operational costs to attract investment and support Nigeria’s energy security.

The cost-reduction drive comes as Nigeria seeks to revitalise its upstream sector, encourage new licensing round participation, and improve overall operational efficiency amid competitive global energy markets.