Business / 28 Jul 2025

CEGA hails NUPRC over approval of 37 new oil routes to tackle theft, boost output

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CEGA hails NUPRC over approval of 37 new oil routes to tackle theft, boost output

The Centre for Energy Governance and Accountability (CEGA) has praised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for securing federal approval for 37 new crude oil evacuation routes, describing the move as a decisive step in tackling oil theft and stemming revenue losses.

The commendation followed NUPRC Chief Executive Gbenga Komolafe’s announcement at the 2025 Nigeria Oil and Gas (NOG) Energy Week in Abuja. He explained that the new evacuation channels are part of wide-ranging reforms designed to make Nigeria’s upstream oil sector more transparent, resilient and globally competitive.

Komolafe also said the commission’s collaboration with the Nigerian Armed Forces and other security agencies has significantly improved the safeguarding of critical oil infrastructure nationwide.

In a statement issued on Sunday, CEGA described the development as a “major milestone” in addressing decades of crude oil theft and praised Komolafe for turning policy into tangible results.

“The approval of 37 new evacuation routes is more than administrative fine-tuning; it is a strategic intervention in a sector that loses billions every year to theft and inefficiencies. This reflects a firm commitment to sealing leakages and rebuilding investor trust,” said Dr Kelvin Sotonye Williams, CEGA’s Executive Director.

Williams also commended Komolafe’s stewardship at NUPRC for stabilising a regulatory environment that had long been marred by opacity and uncertainty before the passage of the Petroleum Industry Act (PIA) in 2021.

He pointed to $16 billion in investment pledges already secured under the Tinubu administration as proof of growing investor confidence, attributing much of the progress to reforms driven by NUPRC.

“These are not mere declarations. They represent real capital inflows powered by clear vision, consistent regulation and rapid digitisation,” Williams noted.

CEGA also lauded the commission’s One Million Barrels Initiative, aimed at raising daily production from 1.7 million barrels per day (bpd) to 2.5 million bpd by 2026. According to Komolafe, the plan, launched in 2024, is showing results by reviving inactive fields, speeding up project approvals and easing upstream licensing bottlenecks.

Williams said increasing production remained the most direct path to energy security and financial self-reliance, particularly at a time when global upstream investment must reach $640 billion annually to meet demand forecasts through 2030.

“Komolafe is right to warn that failure to invest in supply will jeopardise both regional and global stability. Nigeria’s reserves are a strategic resource that must be fully and responsibly utilised,” Williams stressed.

He further praised the commission’s HostComply initiative, which ensures real-time adherence to host community obligations under the PIA, calling it essential for maintaining trust in oil-producing areas.

“Peace cannot be sustained by words alone. HostComply makes commitments measurable and builds confidence in the Niger Delta,” Williams said.

He added that CEGA welcomed NUPRC’s push to embed environmental accountability into upstream policies, particularly in support of Nigeria’s 2060 net-zero ambition.

“The energy transition does not entail abandoning oil and gas but producing them more responsibly and reinvesting in long-term energy security. The commission’s reforms embody this approach,” he said.

CEGA encouraged all industry players, from national to private operators, to align with NUPRC’s vision and commit to ethical, environmentally conscious operations.

“With Komolafe at the helm, the commission is not settling for survival. It is driving real transformation,” Williams concluded.

The group also called on the federal government to keep supporting these reforms by protecting the regulatory space from political interference and ensuring that executive directives on local content and cost efficiency are consistently enforced.

“If this momentum is maintained, Nigeria’s upstream industry will not only recover but lead Africa’s next phase of sustainable fossil fuel development,” CEGA affirmed.