KEY POINTS
- ICPC says it is ready to support stronger compliance and accountability in petroleum regulation.
- NUPRC seeks effective governance to improve investor confidence in the upstream sector.
- NUPRC is reviewing bidding requirements after some awardees struggled to develop allocated assets.
- Successful bidders are expected to undergo an onboarding programme in October.
MAIN STORY
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has pledged closer cooperation with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to strengthen compliance and reduce corruption risks in the petroleum industry.
ICPC Chairman, Dr Musa Aliyu, made the commitment on Friday in Abuja when the NUPRC Chief Executive, Mrs Oritsemeyiwa Eyesan, visited the commission.
Aliyu said the economic importance of the upstream regulator required both institutions to work together on regulatory compliance, information sharing and the prevention of corrupt practices.
He warned that weaknesses within the operations of the petroleum regulator could have wider consequences for Nigeria’s economy, particularly because investor confidence depends on transparency within the sector.
According to him, strong institutional safeguards were necessary to prevent corruption and ensure that the regulator operates effectively.
Aliyu also commended NUPRC’s performance in the ICPC Ethics and Integrity Compliance Scorecard, saying the result reflected its attention to ethical standards and institutional integrity.
He said closer information sharing and trust between both agencies would improve the investigation of cases involving the petroleum industry. He also called for greater cooperation in procurement and efforts to reduce wastage and leakages.
Eyesan, in her remarks, described the upstream petroleum industry as a major source of government revenue and said effective regulation remained necessary to attract investment.
She said the capital intensive nature of upstream operations required a predictable regulatory environment that could give investors greater confidence.
The NUPRC chief executive described the Petroleum Industry Act as a major reform of the sector’s regulatory structure, saying it had helped reshape the investment environment.
Eyesan also said the commission was pursuing efforts to develop Nigeria’s gas resources while improving governance across upstream activities.
She disclosed that NUPRC was reviewing the qualification requirements for its regular bidding rounds after difficulties with some indigenous operators that secured assets but lacked the financial and technical capacity to develop them.
According to her, disputes involving some awarded assets had also contributed to delays in their development.
Eyesan said NUPRC would hold an onboarding programme for successful awardees in October and planned to invite ICPC to sensitise the operators on integrity, good governance and regulatory compliance.
She thanked ICPC for its support and assured the commission that NUPRC would continue sharing relevant concerns and working with it to improve its operations.
THE ISSUES
- Investor confidence in the petroleum industry is closely tied to the strength and transparency of the regulatory system.
- Regulatory weaknesses can create opportunities for corruption, wastage and leakages, making institutional safeguards important to the management of the sector.
- The experience of some indigenous operators raises questions about whether companies receiving petroleum assets have sufficient financial and technical capacity to develop them.
- Disputes over awarded assets can slow development and affect the pace at which Nigeria derives economic value from its petroleum resources.
WHAT’S BEING SAID
“Integrity in your sector is very important. We need investors, and if we are not transparent, it will be difficult for NUPRC to operate optimally.”
Musa Aliyu, ICPC Chairman
“Corruption tends to thrive where systems and institutional safeguards are weak.”
Musa Aliyu, ICPC Chairman
WHAT’S NEXT
NUPRC plans to hold an onboarding programme for successful awardees in October, with ICPC expected to participate in sensitising operators on governance, integrity and regulatory compliance.
BOTTOM LINE
ICPC and NUPRC are seeking closer institutional cooperation as Nigeria works to improve transparency and investor confidence in the petroleum sector. The review of bidding requirements also signals an effort to address capacity and asset development problems among some operators.
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