Nigeria has cut oil revenue dependence, targets gas-led growth –Tinubu

From Juliana Taiwo-Obalonye, Abuja

President Bola Tinubu has said Nigeria has reduced its dependence on crude oil revenue and will expand the use of natural gas to drive industrial growth, electricity supply and energy access, while holding oil companies accountable for investment commitments.

Speaking through Vice President Kashim Shettima at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja on Tuesday, Tinubu said petroleum resources must support a broader economy, with agriculture, manufacturing, digital and creative industries increasingly central to the government’s diversification agenda.

“We have already reduced our dependence on oil revenue, and we intend to go further,” he said.

“Our gas can power homes and factories. Petroleum earnings support a stable naira and help fund the Federation.”

The President said companies benefiting from government incentives must deliver measurable results, comply with local content requirements and meet their obligations to the environment and host communities.

“Operators who enjoy incentives must deliver on their commitments to work programmes, local content, the environment and host communities, and the Commission must also account publicly for its own performance,” he said.

Tinubu said Nigeria would pursue an energy transition suited to its development needs, balancing climate commitments with the demand for affordable and reliable energy.

“With the largest gas reserves in Africa, we will expand gas supply for power, industry and clean cooking, reduce flaring and methane emissions, and grow renewable energy alongside it,” he said.

“Nigeria will meet its climate responsibilities without sacrificing the development and energy access our people deserve.”

He said a more productive upstream industry should create jobs for Nigerian engineers, fabricators and oilfield service companies, while providing the energy, foreign exchange and investment needed to strengthen other sectors.

Tinubu attributed improved oil production to cooperation among security agencies, operators, host communities and the NUPRC, adding that investors who had moved their capital elsewhere were returning.

According to him, Nigeria has ranked first among Africa’s leading destinations for upstream investment for two consecutive years.

He pledged to uphold the rule of law and the sanctity of contracts, saying the government would work to reduce disputes and resolve them quickly and fairly when they occurred.

Although the Petroleum Industry Act (PIA) provided a foundation for reforms, Tinubu said legislation alone could not attract investment without commercially favourable conditions and efficient implementation.

“Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain.

We listened, and we acted,” he said.

Describing his administration as a listening government, he said reforms must produce practical improvements in the operating environment.

The President assigned a central role to the NUPRC, describing it as the bridge between government policy and investment on the ground.

He charged the commission to maintain clear processes and reliable timelines, coordinate effectively with other government agencies and remain independent, fair and firm in its regulatory decisions.

Tinubu urged the regulator to sustain the commitment, integrity and sense of purpose that had shaped its first five years, saying the government would continue working to make Nigeria a destination of choice for hydrocarbon investment.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the commission had recorded significant achievements, which he attributed to Tinubu’s leadership and reform agenda.

He said Nigeria, with crude oil production of about 1.7 million barrels per day and more than 37 billion barrels of oil reserves, needed increased investment, additional licensing rounds and intensified exploration to unlock its petroleum potential.

Lokpobiri urged the commission to consolidate its gains through decisive regulation and the removal of bureaucratic bottlenecks that could discourage investors.

Chairman of the NUPRC Governing Board, Magnus Abe, said the commission’s establishment under the PIA demonstrated Nigeria’s commitment to reforming the oil and gas industry.

He credited its achievements to Tinubu’s leadership and what he described as the President’s decision to shield the regulator from political interference, while commending its management and staff for transparency, professionalism and operational efficiency.

Chairman of the Senate Committee on Gas, Jarigbe Agom Jarigbe, said the PIA reforms had improved transparency, regulatory certainty and investment inflows.

He said the National Assembly was satisfied with the NUPRC’s performance, particularly its efforts to improve operational efficiency and provide greater certainty for investors.

Representing the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the ministry’s Permanent Secretary, Patience Oyekunle, said the separation of policy, commercial and regulatory responsibilities under the PIA had strengthened regulatory stability.

She reiterated the government’s commitment to maximising Nigeria’s gas resources and urged regulators to strengthen investor confidence through regulatory excellence.

The anniversary featured awards to former directors of the defunct Department of Petroleum Resources in recognition of their contributions to reforms in the upstream sector.

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