The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is taking deliberate steps to embed strong corporate governance practices across the upstream oil and gas sector as the industry expands under the Petroleum Industry Act (PIA).
Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, made this commitment clear after her induction into the Chartered Institute of Directors (CIoD) on April 30, 2026, in Abuja. She highlighted the need for robust governance frameworks to support the influx of new players into the sector.
“We are opening the industry to diverse players and while that diversity is a strength, it must be guided by strong governance,” Eyesan stated.
The partnership with CIoD is aimed at building capacity among operators, particularly new entrants participating in ongoing licensing rounds. Eyesan emphasised that regulation alone cannot guarantee sustainable performance. “Regulation alone is not enough; partnerships like this are essential to instill the right leadership, ethics, and oversight from the start,” she said.
The upstream sector has seen increased activity following the implementation of the PIA, with new investors and indigenous companies entering the space. While this expansion holds potential for higher production and economic growth, it also brings governance risks if new operators lack the necessary structures and ethical frameworks.
Mrs. Rose Nat Eshiett, Chairman of the Abuja Zone of CIoD, acknowledged the governance gaps. “There is a very huge gap in dealing with new businesses… some are not trained,” she noted. She congratulated Eyesan on her induction as a Member of the Chartered Institute of Directors (MCIoD) and pledged the institute’s support: “We will share leadership knowledge, critical skills, and ethical frameworks to strengthen your oversight function.”
This collaboration aligns with broader efforts to professionalise the upstream sector. Strong corporate governance is critical for attracting responsible investment, ensuring transparent operations, minimising risks, and maximising value from Nigeria’s hydrocarbon resources. Poor governance has historically contributed to disputes, inefficiencies, and lost revenue in the industry.
From the Energy Desk perspective, the timing is strategic. As NUPRC continues to award new licences and marginal fields, institutionalising good governance early can help reduce future operational and reputational risks. Partnerships with professional bodies like CIoD provide a practical mechanism to transfer knowledge and standards to both new and existing operators.
Eyesan’s leadership in seeking this partnership signals a recognition that regulatory enforcement works best when complemented by industry-wide capacity building and ethical leadership. For an upstream sector aiming to contribute meaningfully to national oil production targets, governance is not a side issue — it is foundational.
