NUPRC boss urges Nigeria to expedite oil exploration amid growing global investment in renewables

The Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, has said that Nigeria should be quick with getting its hydrocarbon resources out of the ground because there is a growing global investment in renewables and Electric Vehicles (EV)

Komolafe made this known during an interview with THISDAY. He advocated for a change of mind-set by oil-producing communities, adding that the work by the commission to attract investment will be fruitless if the business environment remains hostile.

He said: “We are still trying to do the job of a pastor that is trying to convert hardened sinners. Well, that’s the job we are doing now to get investment into the oil upstream. But we are not giving up. We are doing everything.

“Because the truth of the matter is that the industry is facing a very critical moment. The mind (of oil-bearing areas) needs to shift, and this needs to shift for two reasons. The first reason is that, whether we like it or not, the world is going decarbonised, I mean, with the footprint of renewables.

“Whether we like it or not, EVs are out. And more researches are coming with the incorporation of Artificial Intelligence (AI) and all that. We know that fossil fuels will still continue to reign, but the competition, I mean, the competition with fossil fuels in terms of funding has become so high, which will cut the funding.

“So, to that extent, the first logical thing to look at is that all the funding that is going into renewables now used to go to fossil fuels. So, we are monitoring the trend. The rate of growth of investment in renewables is far outstripping that of fossil fuels. That is the truth.”

He continued that if the country's God-given resources were not aggressively explored and exploited, it could become like the coal in Enugu, which nobody was currently fighting over.

Komolafe stated, “So, the mind shift for us should be for those two reasons: The first reason is that because of the global footprint in energy transition, the momentum is getting high with immediate consequence of defunding.

“So, if that is the case, it now means that if we are able to get investors, we should be very sensitive to how we handle them by creating a congenial and favourable atmosphere for these investments to thrive. And if that happens, then the multiplier effect of that will cushion the economic situation.”