The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC) have agreed to harmonise regulatory fees, rents, and related charges in the upstream oil and gas sector. The commitment was made during a meeting between the chief executives of both organisations, held to address areas of overlap and improve operational efficiency within the industry.
The engagement brought together the leadership of the NUPRC and NNPC as part of ongoing efforts to strengthen collaboration between the regulator and the national oil company. The discussions focused on creating a more transparent, predictable, and investor-friendly fiscal and regulatory environment in line with the objectives of the Petroleum Industry Act (PIA).
Officials at the meeting acknowledged that inconsistencies in fees, rents, and charges have previously created confusion for operators and sometimes led to disputes. By harmonising these cost elements, both institutions said they aim to reduce administrative bottlenecks, eliminate duplication, and ensure clarity for industry stakeholders.
The NUPRC emphasized that its mandate under the PIA includes ensuring effective regulation of upstream petroleum operations, while promoting efficiency and competitiveness. The commission noted that aligning its processes and charges with those of NNPC would support the broader goal of improving ease of doing business in Nigeria’s oil and gas sector.
NNPC, on its part, reaffirmed its commitment to operating as a commercially driven national oil company while complying fully with regulatory requirements. Its leadership stated that closer alignment with the NUPRC would help streamline operations, reduce costs, and enhance value creation for the country.
Both parties agreed that harmonisation would also support Nigeria’s efforts to attract new investments into the upstream sector. With global competition for capital intensifying, officials said Nigeria must offer clear and stable terms to investors, particularly in frontier exploration, deep offshore projects, and gas development.
The meeting also reviewed the progress made since the implementation of the PIA, noting improvements in regulatory clarity and institutional roles. However, it was observed that further coordination was necessary to fully realise the benefits of the reforms, especially in areas where responsibilities intersect.
According to officials familiar with the discussions, the harmonisation process will involve technical teams from both organisations working together to review existing fees, rents, and charges. The goal is to develop a unified framework that reflects current industry realities while safeguarding government revenue.
The leadership of both institutions stressed that the exercise would be carried out transparently and in consultation with relevant stakeholders. They noted that industry operators would be engaged at appropriate stages to ensure that the new framework addresses practical concerns and supports sustainable operations.
The agreement is expected to have implications for operators across Nigeria’s upstream value chain, including international oil companies, indigenous producers, and marginal field operators. A more coherent fee structure, officials said, would improve planning and reduce uncertainties associated with regulatory compliance.
The collaboration also reflects a broader shift toward stronger institutional synergy in the petroleum sector following recent reforms. Since the unbundling of the former Nigerian National Petroleum Corporation and the establishment of NUPRC as a distinct regulator, emphasis has been placed on clear roles and cooperation to avoid conflicts.
Observers note that improved alignment between NUPRC and NNPC is critical to achieving Nigeria’s production and revenue targets. With challenges such as declining output, oil theft, and infrastructure constraints, stakeholders say regulatory efficiency and coordination are essential.
The meeting concluded with a shared commitment to sustained engagement between both organisations. The chief executives agreed that regular consultations would help resolve emerging issues promptly and ensure that policies are implemented in a manner consistent with national interests.
As Nigeria continues to reposition its oil and gas industry under the PIA framework, the move to harmonise fees and rents is seen as a practical step toward strengthening governance, boosting investor confidence, and enhancing the overall performance of the upstream sector.
