President Bola Tinubu has said Nigeria has significantly reduced its dependence on crude oil revenue, assuring that his administration will accelerate economic diversification while placing gas at the centre of the country’s energy strategy.
Tinubu, represented by Vice President Kashim Shettima, spoke on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission. His remarks were contained in a statement issued by the Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, Stanley Nkwocha.
The President said Nigeria’s diversification drive would continue under the Renewed Hope Agenda, with agriculture, manufacturing, digital technology and the creative industries expected to play greater roles in driving economic growth.
“We have already reduced our dependence on oil revenue, and we intend to go further,” Tinubu said, stressing that a diversified economy would still require reliable energy, foreign exchange and investment.
He said petroleum earnings remained important to the economy, while Nigeria’s gas resources could provide energy for households and industries and support the country’s broader development objectives.
Tinubu described the current period as the “decade of Gas”, citing Nigeria’s position as the country with the largest gas reserves in Africa. He said the government would expand gas supply for electricity generation, industrial activities and clean cooking, while reducing gas flaring and methane emissions.
According to the President, Nigeria would also expand renewable energy as part of an energy transition tailored to the country’s circumstances.
“Nigeria will meet its climate responsibilities without sacrificing the development and energy access our people deserve,” he said.
Tinubu said a properly regulated upstream petroleum sector could create employment opportunities for Nigerian engineers, fabricators and oilfield service companies, stressing that the government’s objective was to use petroleum resources as a foundation for developing the wider economy rather than perpetuating dependence on the sector.
He also attributed recent improvements in oil production to the combined efforts of security agencies, operators, host communities and the NUPRC. According to him, investors who previously moved their capital to other jurisdictions were beginning to return to Nigeria.
The President said Nigeria had ranked first among Africa’s leading destinations for upstream investment for two consecutive years, attributing the development partly to reforms introduced through the Petroleum Industry Act.
He, however, noted that legislation alone could not guarantee investment, saying investors also considered commercial terms, operating costs and the efficiency of regulatory processes.
“Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain. We listened, and we acted,” Tinubu said.
He pledged that his administration would continue working to make Nigeria a preferred destination for hydrocarbon investment but warned that investors benefiting from government incentives would be expected to fulfil their obligations.
Tinubu said operators must comply with approved work programmes, local content requirements, environmental standards and commitments to host communities. He also called on the NUPRC to ensure transparency and accountability in its own operations.
“We will uphold the rule of law and the sanctity of contracts, so that disputes are fewer and, where they arise, are resolved quickly and fairly,” he said.
Describing the NUPRC as the “bridge between government policy and investment on the ground”, the President urged the commission to maintain clear processes, reliable timelines and effective collaboration with other government agencies.
He also tasked the regulator with remaining firm, fair and independent in its decisions and urged its leadership to approach the next five years with the same commitment and integrity demonstrated since its establishment.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the NUPRC had recorded significant achievements in its five years of existence, attributing the progress to the reform agenda of the Tinubu administration.
Lokpobiri said Nigeria, with crude oil production of about 1.7 million barrels per day and more than 37 billion barrels in reserves, still required increased investment, additional licensing rounds and intensified exploration to fully unlock its petroleum potential.
He urged the commission to adopt decisive regulatory measures and eliminate bureaucratic bottlenecks that could discourage investment in the sector.
Also speaking, the Chairman of the NUPRC Governing Board, Magnus Abe, said the establishment of the commission under the Petroleum Industry Act demonstrated Nigeria’s continued progress in reforming the oil and gas sector.
Abe credited the commission’s progress to Tinubu’s leadership and his decision to shield the regulator from political interference. He also commended NUPRC personnel for what he described as their commitment to transparency, professionalism and operational efficiency.
The Chairman of the Senate Committee on Gas, Jarigbe Agom Jarigbe, said the PIA reforms had contributed to improved transparency, regulatory certainty and investment inflows. He added that the National Assembly was satisfied with the commission’s performance, particularly its contribution to operational efficiency and greater certainty for investors.
Representing the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the ministry’s Permanent Secretary, Patience Oyekunle, said the separation of policy, commercial and regulatory responsibilities under the new framework had strengthened regulatory stability.
She expressed optimism that the reforms would support higher production and increase the value of investments in Nigeria’s petroleum sector, while urging regulators to sustain investor confidence through regulatory excellence.
The anniversary event also featured the presentation of awards to former Directors of the Department of Petroleum Resources, the agency that was transformed into the NUPRC, in recognition of their contributions to the development and reform of Nigeria’s upstream petroleum industry.
