Oil Price Spike Offers Revenue Boost for Nigeria, Says Abe
Sunday Aborisade in Abuja
President Bola Tinubu’s nominee as Chairman of the Board of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Senator Magnus Abe, on Monday said the surge in global oil prices caused by the war between Iran and the United States presents a strategic opportunity for Nigeria to strengthen its energy sector and boost national revenue.
Abe spoke with journalists shortly after appearing before the Senate Committee on Petroleum Resources (Upstream) for screening as Chairman of the Board of the NUPRC.
The committee, chaired by Senator Eteng Jonah Williams, screened nominees forwarded by President Tinubu for appointment as chairman and non-executive commissioners of the commission’s board.
In line with the Senate’s tradition for former lawmakers appearing for confirmation, Abe was asked to “take a bow and go,” having previously served two terms in the National Assembly.
The former senator, who represented Rivers South East, in the 7th and 8th National Assembly, was also the Chairman of the Committee in the 8th Senate.
Speaking on the implications of the escalating global crisis for Nigeria’s fuel prices, Abe described the situation as a worldwide challenge rather than a purely domestic issue.
“This is a very difficult time for the entire planet. It is not just a Nigerian challenge; it is a global challenge,” he said.
He explained that although rising crude prices could worsen fuel costs for citizens, the development also holds potential benefits for Nigeria’s oil-dependent economy.
“You must look at the balancing act. Prices will definitely be affected, but revenues from our oil sales will also be positively affected. There will be some measure of balance in what will happen,” he said.
Abe also called for global prayers for an end to the conflict, stressing that beyond the economic consequences, the crisis was already claiming lives.
“Human beings are actually dying. Our prayers should be that this conflict, which in my opinion is unnecessary and harmful to the entire world, should quickly come to an end so that we can begin to recover,” he added.
Despite the uncertainties in the international energy market, Abe urged Nigeria to seize the moment to expand investment in gas development and marginal oil fields.
He said: “If the price of oil is going up, it gives us an opportunity to invest in marginal fields that otherwise would not have been profitable.
“If gas supplies are being disrupted globally, this is an opportunity for Nigeria to optimise its own gas production, which will create jobs and new opportunities.”
He also expressed appreciation to the president for nominating him to serve on the board of the regulatory commission.
“I am sincerely grateful to Mr. President, the Commander-in-Chief of the Armed Forces, Bola Ahmed Tinubu, for considering me and other members of the board worthy of service to this country.
“I see it as a great privilege and an opportunity to contribute to the Renewed Hope Agenda,” Abe said.
The former lawmaker assured Nigerians that the incoming board would work with industry stakeholders to strengthen the regulatory framework governing the petroleum sector.
According to him, the framework established by the Petroleum Industry Act (PIA) provides solutions to several long-standing challenges in the industry, including oil theft and tensions with host communities.
“With the Host Communities Fund, the host communities themselves are now stakeholders. They benefit from production, and nobody destroys what he is eating,” Abe said.
Earlier during the screening, one of the nominees for non-executive commissioner on the NUPRC board, Mr. Paul Jezhi, told lawmakers that discrepancies in crude oil measurement at custody transfer points had remained a major challenge in the sector.
He noted that the deployment of modern metering technology could significantly reduce the problem.
“The discrepancies in crude oil at the custody point have been a long-time issue. But modern meters can now record measurements within a margin of plus or minus one to five, and when such meters are deployed, these discrepancies will largely disappear,” Jezhi said.
He further recommended the use of drones and satellite technology to strengthen surveillance against oil theft and pipeline vandalism, particularly in the Niger Delta.
President Tinubu had recently written to the Senate seeking confirmation of 21 nominees for the boards of the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
In the letter, the president nominated Abe as chairman of the NUPRC board.
Abe, a former senator and one-time board member of the Nigerian National Petroleum Corporation, currently serves as chairman of the National Agency for the Great Green Wall.
Other nominees for the NUPRC board include Jezhi, a former chairman of the Trade Union Congress of Nigeria in Kaduna, and Mr. Sunday Babalola, a former deputy director at the defunct Department of Petroleum Resources, which was dissolved following the enactment of the Petroleum Industry Act in 2021.
