Nigeria is set to introduce a real-time cargo tracking system for its oil exports within weeks, in what officials say will mark a major leap forward in transparency, security, and operational efficiency in the country’s upstream petroleum sector.
The announcement was made on Wednesday at the Nigerian Association of Petroleum Explorationists’ (NAPE) 50th anniversary celebration at Eko Hotels & Suites, Lagos, by Gbenga Komolafe, commission chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Komolafe said the initiative, part of the broader Advanced Cargo Declaration System, will provide “end-to-end visibility of crude oil shipments from terminal to destination,” significantly curbing crude theft, closing revenue leakages, and boosting investor confidence.
“In line with our forward agenda, the deployment of real-time cargo tracking for oil export shipments will commence in a matter of weeks,” Komolafe told an audience of industry leaders, policymakers, geoscientists, and young professionals. “This is a decisive step to improve export transparency and safeguard Nigeria’s most strategic economic asset.”
From Legacy Regulation to Modern Oversight
Komolafe’s remarks were set against the backdrop of Nigeria’s sweeping oil and gas sector reforms following the enactment of the Petroleum Industry Act (PIA) in 2021.
For over five decades, Nigeria’s upstream petroleum activities were governed by the Petroleum Act of 1969, a framework that, while foundational, had become ill-suited for a competitive global energy market.
The PIA replaced that legacy system with a more transparent, investor-centric governance structure. It also created the NUPRC as a dedicated upstream regulator charged with repositioning Nigeria as a world-class oil and gas jurisdiction.
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Since its inception, the Commission has issued 19 enabling regulations, launched a 10-Year Strategic Plan (2023–2033), and initiated targeted programmes to boost output, attract investment, and streamline licensing.
The forthcoming real-time cargo tracking project is part of a wider digital transformation agenda within the Commission.
The NUPRC has revitalised the National Data Repository, now Africa’s largest digital petroleum data bank, providing investors with seamless access to high-quality geological and geophysical data. The Commission has also incorporated seismic reprocessing, basin analysis, and targeted data acquisition to de-risk exploration and improve subsurface knowledge.
Komolafe noted that such technological innovations are no longer optional. “Transparency, speed, and precision in regulatory oversight are the currency of trust in today’s energy market,” he said.
Alongside digital reforms, Nigeria is pursuing ambitious production goals through its Project One Million Barrels Initiative.
Launched in 2024, the programme aims to increase daily crude production from about 1.46 million barrels to 2.5 million barrels by 2026, partly by reactivating dormant fields and expediting regulatory approvals. Current unreconciled daily production now averages between 1.7 and 1.83 million barrels per day.
Protecting that output has been another priority. In the past year, the NUPRC approved 37 new evacuation routes, tightened coordination with national security agencies, and intensified measures against crude theft, a problem that has cost Nigeria billions in lost revenue.
Komolafe also reaffirmed Nigeria’s commitment to a gas-driven energy transition. With 210.54 trillion cubic feet of proven reserves, the largest in Africa, Nigeria aims to boost daily gas production from 8 billion standard cubic feet to 12 billion.
Flagship initiatives include the Decade of Gas programme, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative. These projects target zero routine gas flaring by 2030 and a 60 percent methane emissions reduction by 2031.
Beyond domestic supply, the Commission is promoting liquefied natural gas (LNG) expansion, floating LNG solutions, and cross-border pipeline projects to strengthen regional energy integration and industrialisation.
The results of Nigeria’s post-PIA reforms are already showing. Rig counts have surged from eight in 2021 to 43 today, with expectations to hit 50 by year-end. Recent licensing rounds, conducted with enhanced transparency, have drawn renewed investor interest, reversing a decline in sub-Saharan Africa’s upstream investment share.
Fiscal incentives, including competitive royalty regimes and zero hydrocarbon tax for certain projects, are also helping to attract capital to deepwater and offshore developments.
The Commission’s regulatory strategies extend beyond boosting volumes. The Upstream Decarbonisation Framework integrates emissions monitoring, carbon capture and storage, and market mechanisms to monetise emissions reductions. This aligns Nigeria’s hydrocarbon sector with global climate commitments while creating new commercial opportunities in carbon services.
Nigeria is also leading continental regulatory alignment through the African Petroleum Regulatory Forum (AFRIPERF) and working closely with the Africa Energy Bank to channel transition financing to high-impact projects. These partnerships are designed to strengthen Africa’s collective bargaining power in global energy markets.
