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From Uche Usim, Abuja
A major step towards reducing Nigeria’s carbon footprint is being taken by the Nigerian Upstream Regulatory Commission (NUPRC) through the development of a framework for carbon-pricing systems, to make businesses pay for their emissions and incentivise emission reductions through carbon credits.
To actualise this, the Commission has created a new department called “Energy Transition and Carbon Monetisation” to coordinate the drive towards energy transition in the Nigeria oil and gas sector.
Gbenga Komolafe, the Commission Chief Executive of NUPRC made the disclosure on Friday at the Nigerian Oil and Gas Opportunity Fair (NOGOF 2023) held in Yenagoa, Bayelsa State.
According to him: “The new department will drive the focussed implementation of a robust regulatory framework for decarbonisation of upstream operations, introduce clean mechanisms in field development, mitigate the impact of energy transition and ensure sustained investments in Upstream operations whilst improving the environmental credentials of oil and gas.
“It is our hope that in months to come, we should be able to share the vital lessons from the Nigerian transition success story to the global community.”
Komolafe added that the Commission since its inception has concluded and commenced various initiatives and programmes to create investment opportunities and enhance the development of the upstream oil and gas industry in Nigeria, notable among which are: Completion of the 2020 Marginal Field Bid Round and award of Petroleum Prospecting licenses (PPL); Initiation of the ongoing 2022/2023 mini bid round for deep offshore assets; Re-commenced the Nigerian Gas Flare Commercialisation Programme, which is also ongoing.
“Though these programmes have been initiated and are ongoing, opportunities still exist for investors as NUPRC continues to implement strategic actions and initiatives aimed at increasing national crude oil and gas reserves and production,” he said.
The NUPRC CEO further noted that the Commission will, in the weeks ahead, organise its maiden Nigerian Upstream International Investment and Financial Roadshow (NUIIFR) for Petroleum Prospecting Licence (PPL) Awardees, NGFCP Bidders, and potential investors in the upcoming Mini Bid for Deep Water Assets.
“The move is to explore funding opportunities and leverage capabilities of industry players, and prospective Investors (local and offshore) to de-risk the assets and awards. The event will provide opportunities for participants to network, exchange ideas and chart strategic pathways to enhance investment opportunities,” he added.
He said the Commission was leveraging the Petroleum Industry Act (PIA), 2021, which has enhanced the business landscape in Nigeria’s petroleum industry, by providing a more transparent, efficient and investment-friendly regulatory framework.
“In line with the provisions of the PIA, the Commission has developed priority regulations to reinforce the meaning of the intent of the Act, hence creating a predictable regulatory environment for would-be investors. So far five priority regulations have been gazetted, while 13 others have been submitted to the Ministry of Justice for review. Eight are at various stages of development,” he revealed.
