NUPRC warns skills gap threatens oil sector growth

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a significant warning that a burgeoning skills gap threatens the future growth and sustainability of the nation's vital oil and gas industry. Oritsemeyewa Eyesan, the CEO of NUPRC, stressed that this challenge is not due to dwindling reserves or asset sales, but rather a critical shortage of the skilled workforce required to maintain and advance the sector.

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One area I think we need to spotlight is human capital development. As the industry grows, there is a tendency toward default, and if we allow that to fester, it will hurt all of us.

Eyesan urged indigenous operators, particularly those within the Independent Petroleum Producers Group (IPPG), to prioritize human capital development. She emphasized that as local firms increasingly dominate the upstream landscape following the withdrawal of international oil companies, they bear a greater responsibility to uphold industry standards and build capacity. Failure to do so, she cautioned, could undermine not only individual companies but also Nigeria's overall standing in the global energy market, as international investors assess the country's capabilities as a whole.

The NUPRC's message, delivered during a meeting with the IPPG, highlighted the need for these groups to act as a "significant force" in enforcing discipline among members and emulating the operational excellence historically demonstrated by multinational corporations. Furthermore, Eyesan underscored the importance of strict compliance with the Petroleum Industry Act 2021, emphasizing that robust corporate governance and regulatory alignment are crucial for sustaining investor confidence.

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Because we are in a global market, the financiers are rating Nigeria; they are not rating companies, and if we do not bring our human capacity to par, then we will be creating a big problem for ourselves.

From a Nigerian perspective, this warning underscores the critical juncture the oil and gas sector is at. The transition to greater indigenous control necessitates a parallel investment in local talent and expertise. The NUPRC's proactive stance signals a commitment to ensuring that the benefits of the sector are realized sustainably, by building a competent and capable workforce that can drive future growth and maintain Nigeria's position as a key player in the global energy arena.

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As a pressure group, you should hold yourselves to a standard. I think that is one of the things the IOCs have done very well.