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Yes Africa > Blog > Africa Development > Nigeria to Enforce Net-Zero Compliance in Upstream Oil Sector
Africa DevelopmentEconomy

Nigeria to Enforce Net-Zero Compliance in Upstream Oil Sector

Oluwatobi Adebayo
Last updated: 2025/01/01 at 12:40 PM
Oluwatobi Adebayo
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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has introduced the Upstream Petroleum Decarbonisation Template (UPDT) to enforce net-zero compliance within the country’s oil and gas sector.

This initiative aims to align Nigeria’s upstream petroleum operations with its climate goal of achieving net-zero emissions by 2060.

The UPDT requires all operators, including international oil companies (IOCs) and indigenous firms, to set measurable and time-bound greenhouse gas reduction targets. These efforts will adhere to the 2023 Gas Flaring, Venting, and Methane Emissions Regulations, mandating the elimination of routine flaring and venting.

Operators must also implement methane management programs, including leak detection and repair, energy-efficient technologies, and renewable energy integration into their projects.

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Gbenga Komolafe, Chief Executive of the NUPRC, emphasized that these measures are not regulatory hurdles but tools to enhance the environmental credibility of Nigeria’s upstream sector. The initiative is expected to attract sustainable energy investments and ensure the sector’s alignment with global Environmental, Social, and Governance (ESG) standards.

“Embedding sustainability at the core of upstream operations will enable access to project funding amidst the global transition to low-carbon energy solutions,” Komolafe stated.

The UPDT also encourages carbon management initiatives such as Carbon Capture and Storage (CCS), nature-based solutions, and carbon offset projects. These strategies will be integrated into key upstream operations, including Field Development Plans (FDPs), drilling, rig operations, and project engineering.

In addition to technical guidance, the NUPRC plans to facilitate industry-wide adoption of the UPDT through capacity-building programs, starting with a decarbonization workshop in early 2025. The template builds on the “Regulatory Framework for Energy Transition, Decarbonization, and Carbon Monetization” introduced in 2023 as part of the NUPRC’s Seven-Pillar Strategy.

This policy reflects Nigeria’s commitment to sustainability while maintaining its competitiveness in global energy markets.

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