Oil And Gas Sector’s Contribution To Nigeria’s GDP Less Than 10%- NUPRC

The oil and gas sector in Nigeria contributes less than 10 per cent to the country’s Gross Domestic Product (GDP), according to Ofoegbu Kelechi, the Executive Commissioner of Corporate Service Administration at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Kelechi made this statement during a panel session at the ongoing Nigeria Oil and Gas Week in Abuja. The event’s theme is “Showcasing Opportunities, Driving Investment, Meeting Energy Demand,” with a sub-theme of “Nigerian Content as an Enabler.”

Nigerian Content: A Continuous Journey

Kelechi emphasised that Nigerian content should be viewed as a continuous journey rather than a destination. “For Nigerian content to truly be an enabler, it should be seen as a journey.

This journey will be fully appreciated and crystallised when it impacts the lives and economy of our country,” he said.

Role of NUPRC in Value Creation Through the Oil and Gas

Prime Business Africa reports that Kelechi explained that the NUPRC’s role involves creating and retaining value within the Nigerian economy. “As a regulatory body, we understand that Nigerian content is all about value creation and importantly, value retention.

We focus on building capacity by awarding licenses, leases, and permits to those participating in the upstream sector,” Kelechi stated.

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Supporting Licensees Beyond Awarding Licenses

The NUPRC doesn’t just award licenses and step back. Kelechi highlighted the commission’s proactive approach in supporting awardees.

“We provide opportunities for them to access funding, and technology, and to strengthen their governance. This is the veritable way of ensuring they get the funding needed to develop the acreage or perform their responsibilities within the sector,” he explained.

Moving Beyond the DPR Era

Kelechi noted that under the former Department of Petroleum Resources (DPR) arrangement, the regulatory body merely awarded licenses.

However, the establishment of the NUPRC under the Petroleum Industry Act (PIA) has changed this approach. “We now see ourselves as business enablers. Section 6 of Section H of the PIA mandates us to promote an enabling environment for investment in upstream petroleum operations. Nigerian content is a strong pillar in this enablement process,” he said.

Building Capacity and Technology Adoption

The NUPRC is committed to building capacity and promoting technology adoption. “We enable by building capacity, by technology adoption, and importantly, by looking at the end game.

Unless we see higher numbers in our sector, we can’t rest and think we have succeeded,” Kelechi added.

Focus on Impact

Kelechi concluded by stressing the importance of focusing on the end goal, which is the impact on the lives of Nigerians.

“While we celebrate achievements, we must focus on the destination. The destination is when our work truly impacts the lives of the Nigerian people,” he stated.