NUPRC, Komolafe receive strong backing amid alleged bias over oil block licensing

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and its Chief Executive, Gbenga Komolafe, have received strong backing following recent allegations of bias and irregularities in the recently concluded 2024 oil block licensing round.

An advocacy group, the Transparency Network in Nigeria (TNN), defended Komolafe and NUPRC in a statement issued by its Country Representative, Dr. Mustapha Jibrin, on Sunday, April 20, 2025.

The group rejected the allegations and described any suggestion of human interference as baseless, while insisting that the process was the most transparent and technologically advanced in Nigeria’s oil and gas licensing history.

Jibrin also pointed to the presence of independent observers throughout the exercise.

“Those peddling insinuations of bribery or backdoor dealings in this licensing round have clearly failed to grasp the rigorous, technology-driven framework that underpinned every stage of the process,” he noted.

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“The commercial bid evaluation was conducted using a transparent, digital, and point-based assessment system, which included the following parameters: Signature Bonus, Proposed Work Programme Financial Commitments, and Work Performance Security. A computer-based competitive bidding process was adopted, leveraging encryption and decryption technology to ensure data integrity and confidentiality.

“This was televised live for full transparency, open to the public, and conducted in the presence of representatives from relevant entities such as the Nigerian Extractive Industry Transparency Initiative, Federal Ministry of Finance, and Federal Ministry of Petroleum Resources, and acknowledged by all as being transparent.

“Assertions of corrupt practices and insinuations of monetary exchanges reflect a lack of understanding, as the sophisticated digital process eliminated any possibility of human interference. With outcomes determined instantaneously and transparently in full public view, there was no conceivable need for inducements or undue influence,” he added.

Group defends Komolafe

According to Jibrin, the group had been monitoring Komolafe’s activities since his appointment as the Chief Executive of the commission, and found him consistent in delivering on the promises he made to the country.

“During his Senate screening, Mr. Komolafe made a commitment to the nation: to establish a 21st-century regulator and position NUPRC as the leading upstream regulatory body on the African continent,” the Country Representative recalled.

“Today, that vision is not just alive—it has been achieved. Nigeria now ranks as having the best upstream regulator in Africa in terms of best practices, a feat acknowledged by stakeholders at several international energy summits.”

He called on detractors to “respect the integrity of institutions” and stop dragging individuals into unfounded controversies for personal or political gains.

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“Komolafe and his team have done what no other regulatory team has accomplished in decades — they’ve restored public confidence in licensing. These kinds of allegations only distract from the reforms Nigerians have long demanded,” he submitted.

Group says there was full compliance

The anti-corruption network emphasised that compliance with the Petroleum Industry Act (PIA) was strictly followed.

“The 2024 Licensing Round was conducted in strict compliance with the Petroleum Industry Act (PIA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Guidelines, ensuring a transparent, competitive, and technology-driven allocation process,” he stated.

Jibrin further stressed that bidders were assessed based on merit and capability, not insider relationships or bureaucratic favour.

“The technical and financial capability of a bidding entity is not solely determined by the date of incorporation of the Special Purpose Vehicle (SPV) used for bidding. Instead, it is assessed based on the expertise, financial strength, and track record of the stakeholders, affiliated entities, or parent companies backing the SPV,” he explained.

According to TNN, this framework opened the door to legitimate new entrants while ensuring only technically competent and financially sound operators advanced through the process.

“In Nigeria’s 70-year history of oil exploration, this is the first time a bidding licensing round was done in an open and transparent manner, leveraging technology, thereby removing any form of human interference and making it devoid of corrupt practices,” Jibrin added.