The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, announced that the commission’s efforts to reduce human interference in licensing and permit issuance processes have cut corruption by 70%. This development comes alongside NUPRC’s new strategic partnership with Argentine tech company Galileo to reduce gas flaring in Nigeria’s oil and gas industry.
In a statement issued on Saturday, the commission highlighted Komolafe’s remarks during a visit by the management of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to the NUPRC’s headquarters in Abuja.
Komolafe emphasized the NUPRC’s pivotal role in regulating Nigeria’s upstream petroleum sector, focusing on transparency, efficiency, and sustainability. He underscored that combating corruption requires a multifaceted approach, which the commission is committed to through various initiatives promoting accountability and good governance.
One such initiative is the award of petroleum licenses through open competitive bids, which has eliminated partiality and favoritisms, instilling confidence among investors and stakeholders. The establishment of a beneficial ownership register, as mandated by the Petroleum Industry Act (PIA), has further enhanced accountability and prevented illicit financial flows by providing insights into the ownership structures of entities operating within the sector.
“The commission is also in the process of gazetting a code of conduct for operators in the sector to ensure adherence to ethical practices, with penalties for non-compliance,” Komolafe stated.
Additionally, the NUPRC has reduced human interference in its permit processes, decreasing bribery incidents by 70% through the digitization of permits and licensing. The implementation of the oil and gas industry service permit portal allows for transparent and efficient processing of permits. The recent launch of the ‘Host Comply’ platform aims to enhance the administration of the Host Communities Development Trust (HCDT), ensuring that host communities benefit directly from petroleum operations.
Komolafe also mentioned that in February 2024, the commission inaugurated an anti-corruption unit to ensure integrity and compliance in its operations.
ICPC Chairman, Dr. Musa Aliyu, praised the NUPRC’s transparency and efficiency initiatives, such as the metering system and Host Comply. He assured NUPRC of ICPC’s support in the fight against corruption and urged staff to back leaders with integrity to enhance Nigeria’s global image.
Meanwhile, the NUPRC announced its partnership with Argentine tech company Galileo to reduce gas flaring. This collaboration will leverage modular technology to support the Nigerian Gas Flare Commercialisation Programme (NGFCP), aligning with the PIA’s mandate to pursue the Gas Flare Act.
Komolafe highlighted that the partnership with Galileo is strategic, given the company’s potential to help reduce gas flaring. The NUPRC has established a College of Awardees, an interactive team comprising financiers, awardees, and technology producers to ensure the success of the NGFCP. To date, the NUPRC has issued 49 awards aimed at eliminating 500 million standard cubic feet of gas from flaring.
The College of Awardees will meet periodically, both virtually and physically, to facilitate ongoing collaboration and progress tracking, the statement said.
