Nigeria Ties Oil Licenses to Low-Carbon Standards and Renewable Energy Goals

Starting January 1, 2025, Nigeria will require all applicants for oil licences and permits to demonstrate compliance with low-carbon emission standards and include a renewable energy program as part of their proposals. The announcement, made by Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), underscores the country’s commitment to achieving net zero carbon emissions by 2060.

New Compliance Framework: UPDT
The NUPRC has introduced the Upstream Petroleum Decarbonisation Template (UPDT) to provide a structured guideline for applicants in aligning with these new requirements. Enforcement of this policy will apply across all upstream sector approvals, including divestments.

Policy Objectives
“This initiative aligns Nigeria’s upstream petroleum industry with national priorities and international climate goals,” said Komolafe. He emphasized the dual focus on ensuring the sustainable utilization of oil and gas resources while supporting Nigeria’s energy security and economic development.

Methane Management and Renewable Integration
Operators will be mandated to implement comprehensive methane management programs, including:

• Leak detection and repair systems
• Adoption of energy-efficient technologies
• Integration of renewable energy sources into oil and gas projects

Net Zero Goals
The policy is a significant step in Nigeria’s roadmap toward decarbonizing its petroleum sector while contributing to global climate objectives.