PIA and Komolafe’s midas touch

The Petroleum Industry Act (PIA) was signed into law in August 2021 to govern Nigeria’s petroleum industry. The PIA in general terms, establishes a legal framework for the petroleum industry, thereby providing it with a workable regulatory framework. The Act also provides a fiscal framework and its governance framework, which promotes competitiveness, accelerates economic growth, and aligns the industry with global best practices.

The effective implementation of the PIA ensures, among other things, good governance, provides social and economic benefits for host communities of the industry, and commercialises the Nigerian National Petroleum Corporation, thereby making it a Limited Liability Company (PLC).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is the body legitimately charged with the responsibility to prosecute the achievements of these lofty, citizen-centred goals. Therefore, it is not without contradiction that Engr. Gbenga Komolafe, upon his appointment as the Commission’s Chief Executive, was adamant about setting new heights, reinventing better strategies, and achieving superlative achievements.

A highly innovative team player, his major focus was not just on the implementation of his given mandate as stipulated by the Act but on ensuring proven, verifiable, measurable, and bar-setting attainments for all to see. To achieve this, he initiated a strategic interface between principal officers of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with him as the chief, and other critical stakeholders made up of representatives of the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG). The interface was aimed at addressing salient industrial concerns and obtaining demonstrable commitment that will ensure the seamless implementation or enforcement of the Domestic Crude Supply Obligation (DCSO), which is a key policy targeted at enhancing domestic energy security in Nigeria.

As a dogged and patriotic citizen, Engr. Komolafe consistently emphasises the imperative of upholding the Petroleum Industry Act (PIA) 2021 as well as maintaining regulatory clarity, noting that the DCSO regulation, which was developed in collaboration with stakeholders, provides clear guidelines under Section 109 of the PIA. He has also demonstrated a commitment to fostering sustainable innovations and investment in the oil and gas sector.

Consequently, he has deliberately wowed investors through the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos and many such crucial regional collaborations, technological advancements, and knowledge exchanges. Mr. Komolafe’s several transformative and result-orientated positive efforts have led to many strategic reforms, particularly the implementation of the Petroleum Industry Act (PIA).

He has enhanced and demonstrated commitments, governance, transparency, and efficiency within the Commission, thereby positioning Nigeria as a top destination for energy investments through robust field development programs, advanced oil recovery techniques, and resource optimisation, making Nigeria an evolving leader in the petroleum innovation industry, and expanding her frontiers in the global energy arena.

Engr. Komolafe’s sustained drive in the Nigeria Gas Flare Commercialisation Program (NGFCP), aimed at eliminating gas flaring by 2030, and his determined pledge to achieve net zero carbon emissions by 2060 has become a compelling factor in enhancing the desired enabling environment for investment. With his objective, creative, action-orientated, and positive mindset, coupled with the various laudable reforms in the PIA, Komolafe is poised to exploit Nigeria’s 37.5 billion barrels of oil reserves and 209.26 trillion cubic feet of natural gas and her vast renewable energy potential in solar, wind, and biomass, while exploring vast, as well as holding on to the exploitation of fossil fuels, which will continue to play a crucial role in meeting global demand, while strategically leveraging Nigeria’s energy resources to ensure a just and inclusive transition, balancing energy equity and economic development with sustainability.

Taking head-on the various challenges in the oil and gas industry, Engr. Komolafe’s clear identification of the infrastructural deficits and financing constraints; which are driven by extraneous factors including climate-related policies as major obstacles in the region, has led to such initiatives as the African Petroleum Regulatory Forum (AFRIPERF), a more formidable structured governance framework comprising an Executive Committee, a Technical Committee, and a Secretariat all housed at the NUPRC, and dedicated to fostering regulatory collaboration, harmonizing standards, and advocating for Africa’s energy priorities on the global stage, leading to a formidable solid foundation for future initiatives.

His conscientiousness and dedication have fostered new narratives and paradigm shifts, positioning Nigeria as a leader in energy security and economic growth. Today, Nigeria stands as the continent’s second-largest oil reserve holder and the largest gas reserve holder, with oil reserves estimated at 37.5 billion barrels, while gas reserves stand at 209 trillion cubic feet (TCF). Oil production in Nigeria currently averages 1.75 million barrels per day (BOPD), with a gas production rate of 7 billion standard cubic feet per day (SCFD).

A disciplined and observant leader, he has driven a responsive commission, thereby ensuring full compliance with the Petroleum Industry Act (PIA). Through several initiatives aimed at enhancing regulatory effectiveness and attracting investments, the Commission has been able to unveil its 10-year Regulatory and Corporate Strategic Plan (2023–2033) in May 2023, followed by a Regulatory Action Plan for 2024 detailing key industry reforms.

Accordingly, and in line with the given mandate, Chief Gbenga has successfully increased the oil and gas reserves and production, enhanced hydrocarbon accounting transparency, achieved cost efficiency and decarbonization in upstream operations, ensured stability in host communities, and reduced the carbon footprint of oil and gas activities. In an avowed demonstration towards bringing in foreign investors, he launched an initiative tagged “Licensing Round and Investment Drive.” This initiative also includes roadshows in Houston, Miami, London, and Paris, showcasing Nigeria’s energy potential and offering 24 oil and gas assets to investors to stimulate interest and attract global participation.

A focused and optimistic driver of change, his dynamic target is to increase production by 1 million BOPD by December 2026 under the Project 1 MMBOPD initiative, leveraging collaboration among operators, service providers, financiers, and host communities, and growing five oil wells before March 2025. He has strategically made the Nigeria Gas Flare Commercialisation Programme (NGFCP) the prime focus of the country’s energy transition strategy and aims to eliminate routine gas flaring, reduce methane emissions, and encourage carbon capture technologies. Also building on the Carbon Credits Earning Framework, he aims to commercialise decarbonisation efforts while promoting sustainable energy practices.

It is therefore little wonder that with such giant strides, Engr. Komolafe has consistently broken revenue growth and financial performance records, exceeding revenue targets, and outperforming its budgeted revenue collection by 84%, marking a strong financial signature performance for Nigeria’s upstream sector. These upbeat achievements have been necessitated by a deliberate and honest implementation of regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems, which have curbed revenue leakages and crude oil theft.

Chief Gbenga’s ambitious and strategic Host Community Engagement and Regulatory Transparency have led to the incorporation of 137 Host Community Development Trusts (HCDTs), thereby enhancing local participation and stability in oil-producing regions. The sustainable and all-inclusive initiative of establishing the Alternative Dispute Resolution Centre (ADRC) has led to efficient and pragmatic conflict resolution, with consequential positive benefits of a significant reduction in the disruptions of oil and gas operations in the country.

Engr. Gbenga Komolafe’s extensive reforms, outstanding work in implementing the PIA, and Mida’s touch in getting things done, as brilliantly shown by his groundbreaking work in office and the many successes seen in the industry today, have made him one of our country’s greatest industrial reformists and an important asset for economic growth and global energy development, improving regulatory certainty, investment-friendly policies, and global competitiveness, and bringing about the desired volte-face.

Kuta is a public affairs analyst based in Minna.