NUPRC, NNRA to cut oil production costs, boost safety regulations

The Nigerian Upstream Petroleum Regulatory Commission has commenced moves to harmonise regulatory processes with the Nigerian Nuclear Regulatory Authority as part of efforts to strengthen radiological safety in oil and gas operations and reduce the cost of doing business in the upstream petroleum sector.

The initiative emerged from a recent meeting between the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, and the Director-General and Chief Executive Officer of the NNRA, Yau Idris, at the commission’s headquarters in Abuja.

According to a statement issued by the Head of Corporate Communications and Media at the NUPRC, Eniola Akinkuotu, on Sunday, the collaboration is expected to address overlapping regulatory requirements, close existing gaps in oversight, and create a more efficient compliance framework for operators in the industry.

The statement read, “The Nigerian Upstream Petroleum Regulatory Commission is partnering with the Nigerian Nuclear Regulatory Authority in order to enforce radiological safety in oil and gas operations and reduce the overall cost of operations.”

While the NUPRC regulates the technical, commercial, and operational aspects of oil and gas exploration and production, the NNRA is responsible for regulating the possession, use, transportation, and disposal of radioactive materials and radiation-emitting equipment across the country.

Speaking during the meeting, Eyesan stressed the need for greater collaboration among regulators to eliminate duplication and improve the investment climate in Nigeria’s oil and gas sector.

She noted that excessive regulatory requirements often translate into additional costs for operators, ultimately affecting the competitiveness of the industry.

“The only way we can safeguard investments is to reduce our cost of operations, and when you have a multiplicity of laws, the likelihood is that you will have higher costs because each law normally will come with its own fees and charges,” the NUPRC boss said.

Eyesan nominated senior officials from the commission who will work closely with the NNRA on the task ahead.

“We have identified critical areas on both sides and we believe that, as we collaborate, we can close existing gaps,” she said.

Responding, Idris said the cooperation of the NUPRC was crucial because the upstream petroleum industry remains one of the largest users of radioactive sources and radiation-emitting equipment in Nigeria.

According to him, radioactive technologies are widely deployed in well logging, industrial radiography, and nucleonic gauging activities that support oil and gas exploration and production.

He explained that the partnership would enable both agencies to share information and simplify compliance procedures for operators.

“The goal is a single-window approach, where both agencies share information rather than requiring operators to submit the same data twice,” he said.

Idris further stated that, since oil and gas extraction often brings Naturally Occurring Radioactive Materials (NORM) to the surface, the NNRA seeks the assistance of the commission to ensure that operators conduct radiological impact assessments as part of their broader Environmental Impact Assessments, while NORM management protocols are incorporated into the NUPRC’s environmental guidelines for the upstream sector.

The two agencies also agreed to deepen collaboration in training, capacity building, and knowledge sharing on radiation protection and safe operational practices.

The latest partnership comes as the Federal Government intensifies efforts to boost investment in the petroleum sector, increase production, and enhance operational efficiency following the implementation of the Petroleum Industry Act.

On Sunday, The PUNCH reported that Nigeria’s oil and gas sector recorded a 283.3 per cent increase in foreign capital inflows in the first quarter of 2026, but the industry continued to attract only a negligible share of total investments entering the country, official data showed.

Figures obtained from the latest Capital Importation Report released by the National Bureau of Statistics and analysed by our correspondent on Friday showed that the oil and gas sector attracted just $0.46 million in foreign capital during the review period, compared to $0.12 million recorded in the corresponding period of 2025.

Although the year-on-year growth represents a significant percentage increase, the actual value of investments flowing into the industry remained extremely low when compared to the overall capital imported into the Nigerian economy.

The NBS report indicated that total capital importation into Nigeria rose to $10.37 billion in the first quarter of 2026 from $5.64 billion recorded in the same period of 2025, representing an increase of 83.83 per cent.

SOURCE: PUNCH NEWS PAPER

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