Starting January 1, 2025, Nigeria will require applicants for oil licences and permits to demonstrate their commitment to low carbon emissions and renewable energy initiatives before approval is granted. This new policy, introduced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is part of the country’s broader efforts to achieve net-zero carbon emissions by 2060.
The move is designed to align Nigeria’s oil and gas sector with both national environmental priorities and global climate commitments. Gbenga Komolafe, the CEO of NUPRC, highlighted that this policy aims to ensure the sustainable development of the nation’s oil and gas resources while addressing the environmental impact of the industry. It will also contribute to enhancing Nigeria’s energy security and economic growth.
Under the new regulations, oil companies will be required to submit a detailed decarbonisation strategy as part of the application process. The NUPRC has issued a framework called the Upstream Petroleum Decarbonisation Template (UPDT), which will guide applicants in formulating these plans. These plans must include tangible steps such as implementing methane management programs—focusing on leak detection and repairs—optimising operations with energy-efficient technologies, and integrating renewable energy into existing and future projects.
The policy applies to all upstream sector approvals, including new projects and divestments, ensuring that companies operating in Nigeria’s oil industry adhere to stricter environmental standards moving forward. Komolafe emphasised that the initiative is part of a broader push to reduce the carbon footprint of the upstream petroleum sector while still fostering economic growth and energy security for the country.
With the enforcement of this requirement set for 2025, Nigeria is taking decisive steps to balance its economic reliance on oil with the global push for greener, more sustainable energy practices. This initiative is expected to play a critical role in Nigeria’s efforts to meet international climate goals while supporting its oil industry’s long-term development.
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