Business

Controversy Over NUPRC’s Proposed Role as Oil Concessionaire

By IDNN Energy Desk

Stakeholders in Nigeria’s oil and gas industry have raised alarm over plans to amend the Petroleum Industry Act (PIA) to designate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as concessionaire of all oil assets, displacing NNPC Ltd.

The proposal also makes the Ministry of Finance the sole shareholder of NNPC, sidelining the Petroleum Ministry. Critics say this could create conflicts of interest and weaken NNPC’s strategic role.

How PIA Reforms Are Being Rewritten

The PIA, passed in 2021 after decades of debate, gave NNPC a commercial role as concessionaire and operator of Nigeria’s oil assets. Moving this role to NUPRC — a regulator — blurs lines between policing and operating the industry, analysts argue.

Investor Confidence at Risk

Experts, including the Nigerian Association of Petroleum Explorationists (NAPE), warn that abrupt policy shifts could scare away investors. Oil workers insist the change undermines the PIA before it has stabilised. The controversy sets up another battle in Nigeria’s oil reform trajectory.


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