Komolafe’s NUPRC: The Quiet Force Behind Nigeria’s Oil Reform Momentum

Nigeria’s oil and gas sector, once synonymous with opacity and underperformance, is undergoing a quiet revolution—driven by the reform-minded leadership of Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Armed with the Petroleum Industry Act and a clear mandate, Komolafe is rewriting the rulebook, restoring investor confidence, and laying the groundwork for a more transparent, accountable, and productive upstream industry.

Komolafe has steadily positioned the NUPRC not just as a regulatory watchdog but as a catalyst for reform in the Nigerian upstream sector.

From tackling crude oil theft to improving hydrocarbon measurements and enabling local ownership of oil assets through a transparent International Oil Company (IOC) assets divestment, Komolafe is reshaping the rules of engagement as enshrined in the Petroleum Industry Act, 2021.

The CCE understood that President Bola Tinubu’s vision for a $1tn economy is hinged on the country’s ability to harness its oil and condensate reserves of 37.28 billion barrels and gas reserves of 210.54 trillion cubic feet.

President Tinubu also wants to score an economic point by executing the highest ever budget of N54.99tn in 2025, which needs oil revenue to fund. This means oil production must be raised to over two million barrels daily and the NUPRC is at the heart of the ambitious spending.

To achieve this, the NUPRC Chief is implementing reforms that would dismantle the elephant in the room, which is theft and inaccuracy in the measurement of hydrocarbons.

The first mission was to bring transparency to hydrocarbon accounting through Metering Systems Audit & Optimisation to align with international standards and Advance Cargo Declaration for tracking and avert revenue leakages.

The second mission was to return foreign investors’ confidence in the oil and gas industry through a smooth divestment of IOC assets and predictability, which had been lacking for decades.

One of the most significant milestones in his tenure so far came with the recent submission of the Engineering Audit Report on Nigeria’s upstream measurement systems by PE Energy Limited.

The audit, which covers on-site inspections of metering facilities, aims to redefine how Nigeria accounts for and monetizes its oil resources.

“The results will redefine how Nigeria manages and monetizes its most vital natural resource,” Komolafe said during the report presentation, underscoring his focus on revenue optimization and transparency.

The audit’s findings, backed by the Petroleum Industry Act (PIA) 2021, address a longstanding weakness in Nigeria’s upstream sector—the lack of accurate hydrocarbon measurement.

Over the years, inaccurate measurement of hydrocarbons accounts for a significant portion of reported “oil theft” in Nigeria, potentially as much as 40 per cent of reported losses.

“Accurate metrics of production are very important. It is as important as increasing production itself,” Komolafe had.

“We expect to see the nation being able to have digital monitoring of its daily production.”

Under Komolafe, NUPRC has begun implementing new measurement regulations and launched a Metering Systems Audit and Optimisation Program to align Nigeria with global standards.

This move, alongside the Federal Executive Council’s approval to meter 187 crude oil flow stations in the Niger Delta, marks a robust step toward curbing leakages and improving revenue.

But Komolafe’s reforms did not stop at technical audits. He has also emerged as a key player in navigating the complex divestment of oil assets by International Oil Companies.

Eni’s sale of Nigerian Agip Company Ltd (NAOC) to Oando Plc; Equinor’s assets sale to Project Odinmim Investment Ltd; TotalEnergies- Telema Energies assets sale; ExxonMobil sale of Mobil Producing Nigeria Unlimited (MPNU) to Seplat and SPDC acquisition by Renaissance have all been approved successfully, paving the way for greater indigenous participation in the sector.

These divestments have shifted the balance of control in Nigeria’s oil production landscape. Local companies now account for a growing share of daily crude output, which recently hit 1.7 million barrels per day.

The Independent Petroleum Producers Group (IPPG), a coalition of local oil firms, recently paid a courtesy visit to Komolafe to commend the NUPRC’s role in facilitating these transitions.

“We appreciate the Commission’s support and professionalism,” said IPPG Chairman Abdulrazaq Isa.

“The divestment process was transparent and efficient, and we are proud to be part of the sector’s new direction.”

During the meeting, the NUPRC boss reaffirmed the Commission’s commitment to creating a business-friendly environment. He highlighted reforms such as automated licensing processes and the “drill-or-drop” policy, which compels leaseholders to either develop their assets or forfeit them.

“We’re seeing real results,” Komolafe stated. “From just 11 rigs before the PIA, we now have 42 active rigs. That’s a sign of renewed investor confidence.”

Komolafe is also implementing an initiative designed to address business process reengineering and optimization; improve regulatory service delivery
and value optimisation to the government and industry players.

The automation of licensing has helped reduce red tape, enabling quicker approvals for exploration and development. These measures aim not only to streamline operations but to foster transparency and fight corruption.

The Commission is also pursuing its “Project One Million Barrels Incremental,” which seeks to scale Nigeria’s production by at least one million barrels per day.

The project lunched in August 2024 is already yielding results- scaling oil production to 1.7 million barrels.

Analysts believe that Komolafe’s strategy combines short-term operational wins with a long-term vision for sustainability. By improving measurement accuracy, enforcing compliance, and backing indigenous participation, he is building a new governance model for Nigeria’s upstream oil sector.

The metering audit alone, they argue, could plug billions in revenue losses. Accurate data not only strengthens fiscal policy but also enhances Nigeria’s global credibility as a reliable oil supplier.

Transparency is also becoming a cornerstone of Komolafe’s administration. With initiatives like the Advanced Cargo Declaration System, the Commission now tracks crude oil shipments more efficiently, reducing the risk of fraud and unauthorized lifting.

This comprehensive reform agenda is anchored on the provisions of the PIA, which mandates NUPRC to regulate the technical and commercial aspects of upstream operations. Under Komolafe, these mandates are no longer abstract goals but measurable outcomes.

Another noteworthy shift is Komolafe’s consultative approach. He frequently engages stakeholders across the industry to gather feedback and adjust policy direction where necessary.

Komolafe’s openness to dialogue has earned him praise not only from producers but also from policy analysts and civil society actors.

With a data-driven approach, stakeholder engagement, and firm commitment to the Petroleum Industry Act, Komolafe is not just steering regulatory reforms—he is resetting the entire trajectory of Nigeria’s upstream oil and gas sector. In a landscape long plagued by opacity and underperformance, the NUPRC under his leadership is proving that with vision, transparency, and execution, lasting change is not only possible—it’s already underway.

Komolafe’s NUPRC: The Quiet Force Behind Nigeria’s Oil Reform Momentum is first published on The Whistler Newspaper