The Federal Government has expressed optimism that United States President Donald Trump’s strong advocacy for oil drilling will mitigate longstanding funding challenges in Nigeria’s hydrocarbon sector.

Speaking in Lagos after receiving the ThisDay CEO of the Year Award, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, highlighted the growing difficulty in securing financing for fossil fuel projects, as many international financial institutions rioritize renewable energy investments.  Komolafe noted that the shift towards renewables had significantly constrained new investments in the oil sector. However, he projected a more favorable outlook for Nigeria in 2025 and beyond, citing Trump’s  Drill, baby drill’ slogan and his inclination to expand crude production in the United States

“As a regulator, it is our opinion that the programme, that is the ‘Drill, baby drill’ programme of President Trump, would have a positive effect on us as a nation with large hydrocarbon reserves.

“What that means is that the challenge of funding for the development of hydrocarbons will relapse. If you remember, one of the major challenges facing the optimisation of hydrocarbon reserves is funding. Because the momentum in renewables and the investment in renewables were already having a negative impact on the funding of hydrocarbon.

“But given the position of President Trump, it means that funding challenges in fossil fuel will be relapsed, and that will have a favourable impact on the development of hydrocarbon in Nigeria,” Komolafe stated.

Regarding Trump’s recent call for the Organisation of the Petroleum Exporting Countries (OPEC) to lower crude oil prices, Komolafe clarified that OPEC does not set oil prices but rather regulates production among its member states.

“I’m not sure he said OPEC should reduce the price of crude because OPEC does not fix the price of crude. Rather, what OPEC does is regulate production among member countries. It is the market fundamentals that dictate the price of crude, not OPEC.

“So, if the idea will be to control growth, that is global inventory. If there is a cut in the global inventory, that itself will regulate the price. But if there is an increase in production from the US based on the ‘Drill, baby drill’ plan, that will increase the global inventory. And if the inventory increases, then that will have an impact on the price. The price will come down,” he explained.

On Nigeria’s zero-routine gas emission initiative, Komolafe reaffirmed the commission’s commitment to the Nigeria Gas Commercialisation Programme, which is aimed at curbing gas flaring and enhancing environmental sustainability.

“It’s one of the programmes we are monitoring the implementation. In fact, we believe that given the diligent implementation of the programme, the nation will begin to feel the effect in terms of cutback in gas flaring in the Year 2025. We are very much committed as a commission to effective implementation of the gas commercialisation programme so that it will have a positive impact,” he stated.

The Federal Government has expressed optimism that United States President Donald Trump’s strong advocacy for oil drilling will mitigate longstanding funding challenges in Nigeria’s hydrocarbon sector.

Speaking in Lagos after receiving the ThisDay CEO of the Year Award, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, highlighted the growing difficulty in securing financing for fossil fuel projects, as many international financial institutions rioritize renewable energy investments.  Komolafe noted that the shift towards renewables had significantly constrained new investments in the oil sector. However, he projected a more favorable outlook for Nigeria in 2025 and beyond, citing Trump’s  Drill, baby drill’ slogan and his inclination to expand crude production in the United States

“As a regulator, it is our opinion that the programme, that is the ‘Drill, baby drill’ programme of President Trump, would have a positive effect on us as a nation with large hydrocarbon reserves.

“What that means is that the challenge of funding for the development of hydrocarbons will relapse. If you remember, one of the major challenges facing the optimisation of hydrocarbon reserves is funding. Because the momentum in renewables and the investment in renewables were already having a negative impact on the funding of hydrocarbon.

“But given the position of President Trump, it means that funding challenges in fossil fuel will be relapsed, and that will have a favourable impact on the development of hydrocarbon in Nigeria,” Komolafe stated.

Regarding Trump’s recent call for the Organisation of the Petroleum Exporting Countries (OPEC) to lower crude oil prices, Komolafe clarified that OPEC does not set oil prices but rather regulates production among its member states.

“I’m not sure he said OPEC should reduce the price of crude because OPEC does not fix the price of crude. Rather, what OPEC does is regulate production among member countries. It is the market fundamentals that dictate the price of crude, not OPEC.

“So, if the idea will be to control growth, that is global inventory. If there is a cut in the global inventory, that itself will regulate the price. But if there is an increase in production from the US based on the ‘Drill, baby drill’ plan, that will increase the global inventory. And if the inventory increases, then that will have an impact on the price. The price will come down,” he explained.

On Nigeria’s zero-routine gas emission initiative, Komolafe reaffirmed the commission’s commitment to the Nigeria Gas Commercialisation Programme, which is aimed at curbing gas flaring and enhancing environmental sustainability.

“It’s one of the programmes we are monitoring the implementation. In fact, we believe that given the diligent implementation of the programme, the nation will begin to feel the effect in terms of cutback in gas flaring in the Year 2025. We are very much committed as a commission to effective implementation of the gas commercialisation programme so that it will have a positive impact,” he stated.