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The Good Governance Index Group has defended the leadership of the NUPRC and NNPC Ltd, describing recent criticisms over oil block allocations and energy security spending as premature and unsupported by evidence.
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The group said the 2026 licensing round, which attracted 143 companies submitting 200 bids for 37 oil and gas blocks, demonstrated improved transparency, competitiveness, and investor confidence under the Petroleum Industry Act.
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According to the group, the controversial energy security spending covered petroleum supply interventions, exchange-rate differentials, and protection of critical oil infrastructure, insisting the figure should be assessed through audited accounts rather than headline-driven conclusions.
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Passing a vote of confidence in NUPRC Chief Executive Oritsemeyiwa Eyesan and NNPC GCEO Bayo Ojulari, the organisation urged stakeholders to rely on evidence-based oversight.
August 11, (THEWILL) — The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd) have received strong backing from the Good Governance Index Group amid mounting public scrutiny over the 2026 oil block licensing exercise and the N7.13 trillion energy security expenditure reported in NNPC Ltd’s audited accounts.
The group dismissed calls for the removal of the leadership of both institutions, insisting that allegations surrounding their operations should be tested against verifiable evidence and statutory processes rather than public speculation.
Speaking at a press conference in Abuja on Monday, the Executive Director of the organisation, Olayemi Isaac, said recent attacks on both agencies risk undermining ongoing reforms aimed at improving transparency, accountability, and investor confidence in Nigeria’s oil and gas industry.
According to Isaac, the recently concluded licensing round conducted by the NUPRC was one of the clearest demonstrations that Nigeria can allocate petroleum assets through a competitive, transparent and rules-based process.
He disclosed that the exercise attracted 143 companies, which submitted 200 bids for 37 of the 50 oil and gas blocks offered by the commission.
“The licensing round represents an important test of Nigeria’s commitment to transparency in the management of its petroleum resources. From the participation of investors to the evaluation of bids and the involvement of relevant government institutions, the process showed that petroleum assets can be administered through a framework that is competitive, predictable and open to scrutiny,” he said.
The group observed that the blocks which attracted bids span the Niger Delta, Benin Basin, Anambra Basin, Chad Basin and the Benue Trough, describing investor participation in frontier basins as a positive signal for Nigeria’s future exploration prospects.
Energy analyst, Idoko, who also addressed journalists, said the emergence of 31 successful companies should not merely be viewed as another allocation of oil blocks but as an opportunity to unlock fresh investments, increase exploration activities and expand Nigeria’s crude oil production capacity.
He praised NUPRC Chief Executive, Oritsemeyiwa Eyesan, for ensuring that the licensing process was driven by professionalism, transparency and strict compliance with the Petroleum Industry Act.
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According to him, the commission’s insistence that successful bidders fulfil financial and operational obligations before taking possession of awarded assets marks a significant shift from the era when oil blocks were acquired largely for speculative purposes.
“What we have seen under the current leadership of the NUPRC is a deliberate attempt to move away from the culture of speculative acreage holding.
“The insistence that successful bidders must fulfil their obligations, pay the applicable signature bonuses, and demonstrate the capacity to develop their assets is a welcome approach. The message that acreage must translate into investment, exploration and production is exactly what Nigeria needs at this stage of its petroleum industry,” Idoko said.
He also defended Eyesan against recent calls for his removal, maintaining that any allegations relating to the licensing process should be investigated through appropriate institutions and backed by credible evidence rather than public accusations.
According to the group, the NUPRC’s actions should be assessed within the statutory responsibilities assigned to the commission under the Petroleum Industry Act.
Turning to NNPC Ltd, the organisation addressed growing public debate over the company’s reported N7.13 trillion energy security expenditure contained in its 2024 audited financial statements.
Idoko cautioned against presenting the expenditure as evidence of wrongdoing without considering the explanations contained in the audited accounts.
He explained that the expenditure covered petroleum supply interventions, exchange-rate differentials as well as the protection of critical oil and gas infrastructure required to guarantee national energy security.
“The discussion around the N7.13 trillion energy security expenditure must be guided by the contents of the audited accounts and the legal framework under which the expenditure was incurred.
“The records explain that energy security costs included obligations arising from petroleum supply interventions, exchange-rate differentials and the protection of critical oil and gas infrastructure. These are issues that deserve scrutiny, but scrutiny must be based on documents, facts and proper interpretation rather than conclusions drawn from a headline figure,” he stated.
The group further cited NNPC Ltd’s reported growth in crude oil production from 1.60 million barrels per day in 2025 to 1.67 million barrels per day in April 2026 as evidence that reforms within the national oil company are beginning to yield measurable results.
While acknowledging that Nigeria’s petroleum industry still faces significant operational and investment challenges, the organisation argued that measurable progress should not be ignored simply because legitimate questions are being raised.
Consequently, it passed a vote of confidence in NNPC Ltd Group Chief Executive Officer, Bayo Ojulari, and NUPRC Chief Executive, Oritsemeyiwa Eyesan, urging stakeholders to allow both institutions to consolidate reforms aimed at improving production, transparency, investment and regulatory efficiency.
“Removing the heads of these institutions on the basis of allegations that have not been substantiated would be counterproductive.
“What Nigeria requires is stronger oversight, better disclosure and continuous institutional accountability. Where there are concerns, let the evidence be examined and let the appropriate institutions do their work. We should not confuse criticism with accountability or accusation with proof,” Idoko added.
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The organisation also urged civil society organisations and advocacy groups to embrace evidence-based engagement by making greater use of the Freedom of Information Act to obtain official documents and seek clarification directly from public institutions instead of relying solely on media campaigns.
It pledged to continue monitoring the activities of both the NUPRC and NNPC Ltd while advocating stronger transparency, institutional accountability and better governance across Nigeria’s petroleum industry.
Background
The statement comes amid heightened public attention over the outcome of the 2026 oil block licensing exercise conducted by the NUPRC and increasing scrutiny of NNPC Ltd’s 2024 audited financial statements, particularly the N7.13 trillion energy security expenditure.
In recent weeks, some groups have questioned aspects of the licensing process and called for changes in the leadership of the NUPRC, while others have demanded greater explanation of the NNPC’s energy security costs.
Both institutions have maintained that their actions comply with the Petroleum Industry Act and existing financial reporting requirements, insisting that ongoing reforms are designed to strengthen transparency, attract investment, and improve Nigeria’s oil production.
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