Nigeria is considering transferring the authority for awarding oil contracts from the state-owned Nigerian National Petroleum Company (NNPC) to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in a move that could reshape governance in Africa’s largest oil industry.
Officials involved in the discussions revealed that the proposal aims to enhance transparency and reduce conflicts of interest in the sector. Reuters reported that the review follows years of criticism over opaque licensing rounds and disputes involving production-sharing agreements.
Industry stakeholders suggest that giving the NUPRC control would align with the 2021 Petroleum Industry Act, which sought to create a clearer separation between commercial and regulatory functions. Bloomberg noted that such a change could also strengthen investor confidence as Nigeria looks to attract more capital into exploration and production.
The NNPC has traditionally controlled contract awards, fueling debates on accountability and efficiency. Analysts warn, however, that any shift must be carefully managed to avoid bureaucratic delays that could stall upstream projects.
With oil accounting for more than 90% of Nigeria’s export earnings, the outcome of this proposal carries significant implications for government revenues and investor sentiment in the months ahead.
