NUPRC seeks Bank of America's support for investment in Nigeria's oil production

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is turning to the Bank of America for increased investment in oil production in the country.

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The regulator’s CEO, Gbenga Komolafe, met with the managing director and head of investment banking for sub-Saharan Africa at the bank, Chuba Ezenwa, in Abuja on Tuesday, as part of efforts to attract investments and boost oil production, according to a statement by Eniola Akinkuotu, the regulator’s spokesperson.

“Nigeria is richly endowed with hydrocarbons, and we seek to optimise production. But funding is critical to our success. So, we are looking for areas of alignment with the Bank of America,” Mr Komolafe said, stressing Nigeria’s rich hydrocarbon resources and the need for funding to optimise production.

The NUPRC boss enjoined the lender to prioritise Nigeria’s upstream sector in its investment portfolio, noting that the move aligns with the Petroleum Industry Act 2021, specifically Section 6(h). The section requires the commission to “promote an enabling environment for investments in the upstream petroleum operations and development of Nigerian content in the petroleum industry.”

Nigeria is witnessing a rebound in its oil output after production plunged below one million barrels per day (bpd) in August 2022, the weakest level in 32 years. Total production (condensates inclusive) for September stood at 1.6 million bpd, 3.1 per cent lower than the previous month’s level.

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According to Mr Komolafe, funding remains a challenge for companies seeking to scale up.

“I am encouraged by the reforms under the leadership of the CCE as well as the results in the area of production, which has sparked interest in Nigeria’s upstream. We will continue to provide support,” Mr Ezenwa said.

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In July, the minister of state for petroleum resources (oil), Heineken Lokpobiri, said Nigeria’s oil industry is struggling due to the underperformance of the upstream sector, adding that the success of the energy industry is predicated on the success of the upstream division.