By James Itodo
The Nigerian oil and gas sector, since its discovery, exploration, and exploitation at the turn of the century, has become the goose that lays the golden egg, likened only to the much-sought-after bride.
This is because oil, and later gas, remained the main economic sustainer, accounting for virtually all the revenue utilised for the economic sustainability and stability of the country—a nation driven by a monolithic economy.
Various attempts at sustaining its viability failed because those reforms lacked the necessary ingredients and the political will of their drivers to succeed. Moreover, the temptation of the enormous amounts generated, and the ease of generating this revenue, became stronger than the moral responsibility and patriotic devotion of the country’s leaders, causing various rulers to rely completely on oil while abandoning or ignoring agriculture and every other means of generating revenue, including all forms of diversification and integration.
The present Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was born out of necessity: first, to inherit the abnormalities of the past; and second, to set in motion reforms aimed at effectively repositioning the sector. Key among these is strong political will and the appropriate sensitisation of the country’s political leaders to look beyond oil and gas revenue and think towards diversification.
To carry this out effectively, there is a need to build trust and confidence on the fulcrum of accountability and transparency.
So far, the verdict has been positive. The basic recipe for repositioning and bringing about a volte-face in the sector is now present: accountability and transparency.
A new era, based on a better concept of transparency and accountability, is enhancing the effective repositioning of the Nigerian oil and gas sector, which will work for the overall benefit of all citizens and indeed residents.
Today, Nigerians are now seeing the oil and gas sector as a blessing, with transparency and accountability becoming the fulcrum of operations at the NUPRC.
There is no doubt that, for decades, Nigeria’s oil and gas sector was a cesspit of abhorrent and odious corruption, coupled with mismanagement—a centre of graft, earning the moniker “resource curse.”
Instead of bringing blessings to the country, it became an avenue for self-aggrandisement and self-enrichment at the detriment of national interest, economic growth, prosperity, and development.
As a whole, the sector’s opacity and lack of accountability led to widespread corruption, where the few who had access to this national wealth enriched themselves and their families—buying choice houses at highly exorbitant prices in prime cities of the world and sending their children to schools abroad on ear-splitting school fees, all with our common patrimony—at the expense of the country. This resulted in environmental degradation and human rights abuses, leaving citizens with little to show for the country’s vast oil resources, world oil production status, and its derived and associated wealth.
However, a new dawn has emerged with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) leading a rescue mission to reposition the sector with renewed vigour, intentionality, and patriotic commitment under the leadership of Engr. Gbenga Komolafe, who has turned the NUPRC into a beacon of hope for Nigerians.
Unambiguously, the NUPRC’s commitment to transparency is demonstrated through its proactive disclosure of key industry data—which had previously been shrouded in obscurity—including production figures, revenue streams, and contract awards.
The demystification and openness of this key information have greatly enhanced the fostering of trust and confidence among stakeholders, including local communities, civil society organisations, and international partners.
Another signature reform is the strengthening and implementation of the Nigeria Extractive Industries Transparency Initiative (NEITI), which ensures that oil and gas revenues are transparently tracked and accounted for, thereby reducing corruption and ensuring that revenues are channelled for the overall benefit of all citizens.
Projecting the ideals of the Renewed Hope Agenda of the Tinubu-led administration, the NUPRC has also prioritised increased utilisation of local content development, bringing on board many more Nigerian companies to participate in the oil and gas value chain, thereby creating more jobs, stimulating economic growth, and empowering local communities.
The sector’s transformation is an unequivocal demonstration of the power of transparency and accountability.
Daily, Nigerians are beginning to see oil and gas resources as a direct blessing rather than a curse, with a sector and operators poised to drive economic growth, create jobs, and improve living standards.
However, this is just the beginning; the journey is far from over, and the best is yet to come—for all of us.
While Nigerians holistically embrace these reforms, they must also continue to demand transparency and accountability from their leaders, while the NUPRC’s efforts must be supported and sustained to ensure that the sector remains a catalyst for national development.
There is no doubt that the oil and gas sector can be a powerful catalytic tool for poverty reduction, wealth creation, and economic transformation. This can be imminently and necessarily achieved when the NUPRC continues in its commitment to transparency and accountability, predicated on the resilience of Nigerians, who will look forward to a brighter future where their natural resources work for them, not against them.
It must be a collaborative and conscientious responsibility of all Nigerians not only to support the NUPRC’s efforts and reforms targeted at transforming the oil and gas sector but also to demand consistent transparency and accountability from our leaders, as this will ensure that our natural resources benefit all Nigerians, securing a brighter future for Nigeria and Nigerians.
