Nigeria’s oil and gas sector is undergoing what regulators describe as a far-reaching transformation driven by indigenous operators, digital technology, and a policy environment that is increasingly integrating clean energy ambitions into the heart of the country’s upstream strategy — with gas flaring already below 10 percent and a firm national target to eliminate it entirely by 2030.
NUPRC Commission Chief Executive Oritsemeyiwa Eyesan said the government is shifting the framing on gas flaring from penalisation to commercialisation — concessioning flare sites to companies capable of converting previously wasted gas into usable energy, with the initiative expected to generate up to three gigawatts of electricity at scale. She said some offshore facilities are already deploying solar energy as part of their power supply infrastructure, and that carbon capture, utilisation, and storage projects are under active consideration for incorporation into Nigeria’s upstream operating model. The Commission is pursuing a pragmatic energy transition that integrates cleaner technologies progressively rather than seeking to abandon hydrocarbons — a position she described as both commercially realistic and aligned with Nigeria’s broader economic development needs.
Eyesan pointed to the rapid growth of indigenous participation as one of the most significant structural shifts in the sector. Nearly 100 Nigerian companies are now active as operators in the upstream — a transformation from an era dominated by a handful of international majors to one where local firms are increasingly driving exploration, production, and technology adoption. She framed this shift as central to Nigeria’s ambition to position itself as a beacon for Africa’s broader energy development, with the resources and regulatory capacity to expand energy access, reduce energy poverty, and support industrialisation across the continent. The Petroleum Industry Act, she noted, has been a game-changing instrument in delivering regulatory clarity and a more competitive fiscal environment — one the current administration has continued to refine through global benchmarking and continuous policy adjustments.
PETAN Chairman Wole Ogunsanya added that the removal of fuel subsidies has accelerated the domestic gas transition, with Compressed Natural Gas adoption for mobility rising rapidly as the economics of CNG become more compelling relative to petrol. He projected that Nigeria will soon reach one million barrels per day of operational refining capacity — a milestone that would materially reduce import dependence and free up foreign exchange — while reiterating that scaling total production to three million barrels per day within five years remains achievable through the right combination of technology, new equipment investment, and international partnerships.
Source: Oriental News Nigeria