Gbenga Komolafe Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that the total annual upstream capital expenditure in Nigeria’s oil and gas industry decreased from 27 billion dollars in 2014 to less than six billion dollars in 2022.
Komolafe disclosed this at the World Petroleum Congress (WPC) in Calgary, Canada, according to Nairametrics.
Represented by the Executive Commissioner, Kelechi Ofoegbu, the Oil chief said this represents a 74% decrease in its capital expenditure (CAPEX), blaming the decline in CAPEX on several factors, and urged that regulatory uncertainty significantly impacted investment in Nigeria’s oil and gas industry in a presentation titled “Nigeria and Canada: Collaborating to Decarbonise Nigeria’s Oil and Gas Sector”.
Komolafe revealed that years preceding the enactment of the Petroleum Industry Act (PIA) affected investment in the industry, including the factors are de-funding of fossil fuel development globally.
The statement revealed by the FG stated that he said most International Oil Companies (IOCs) deprioritized Nigeria in their portfolios which led to the redirection of CAPEX to other countries.
He added that FG plans to leverage this opportunity by doing all that is necessary to attract more investments and revamp the Nigerian upstream sector.
The Chief Executive added that the Petroleum Industry Act has repositioned the Nigerian petroleum sector by creating efficient and effective governing institutions, with clear and separate roles for the industry, and also for enabling transparency, accountability, and fostering a business environment conducive to petroleum operations.
He said since the PIA was brought into law, the Commission developed 24 priority regulations that would create a predictable regulatory environment for operators and other stakeholders.