The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has sent a strong and timely message to the latest winners of Petroleum Prospecting Licences (PPLs): developing oil and gas assets must go hand in hand with responsible engagement of host communities.

Speaking at the signing ceremony for the second batch of winners of the 2022/2023 Mini Bid Round and the 2024 Licensing Round in Abuja on July 17, 2026, the Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, urged the new licence holders to move swiftly in developing their assets while fulfilling their obligations under the Petroleum Industry Act (PIA).

According to the Commission, the newly awarded licences are expected to stimulate exploration activities, attract fresh investment, accelerate the development of Nigeria's hydrocarbon resources, and contribute significantly to national energy security and economic growth. These objectives align with the Federal Government's target of increasing crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030.

However, beyond production targets and investment goals, one aspect of the Commission's message deserves particular attention. Mrs. Eyesan stressed that licence holders must prioritise their host community obligations if they are to succeed. This is an important recognition that petroleum development cannot be sustained without the support and participation of the communities where oil and gas operations take place.

The Commission also reminded the new operators that they are expected to develop their assets promptly or risk forfeiting them under the Petroleum Industry Act's "drill or drop" provision. This policy discourages speculative licence acquisition and ensures that Nigeria's petroleum assets are actively developed for the benefit of the country.

At DevTrack, we commend the NUPRC for placing host community engagement at the centre of its expectations for new licence holders. For many years, the relationship between petroleum operators and host communities was characterised by mistrust, inadequate consultation and uneven development outcomes. The Petroleum Industry Act sought to change this by establishing Host Community Development Trusts (HCDTs), providing communities with a legal framework to benefit directly from petroleum operations through annual funding for development projects, education, healthcare, skills acquisition and other social investments.

By reminding new PPL holders of these obligations at the very beginning of their operations, the Commission is reinforcing the principle that community engagement is not an afterthought or a corporate social responsibility exercise—it is a statutory obligation and a key component of successful petroleum development.

Early engagement helps operators understand community priorities, build trust, reduce conflict, and secure the social licence needed for long-term operations. Communities that are informed, respected and involved are more likely to support projects that create jobs, improve infrastructure and contribute to local economic growth.

This approach is particularly important as Nigeria seeks to attract new investment into its upstream sector. Investors increasingly recognise that environmental, social and governance (ESG) performance is critical to project success. Strong host community relations reduce operational risks, minimise disruptions and create a more stable investment environment.

For host communities, the Commission's position should also serve as a reminder that the rights provided under the Petroleum Industry Act come with responsibilities. Effective participation in Host Community Development Trusts, transparency in project implementation and constructive engagement with operators will be essential to ensuring that the benefits of petroleum development translate into lasting improvements in people's lives.

As Nigeria pursues ambitious production targets, sustainable growth will depend not only on drilling new wells but also on building enduring partnerships between regulators, operators and host communities. By making host community engagement a clear priority for newly licensed operators, the NUPRC is helping to lay the foundation for a more inclusive, accountable and sustainable petroleum industry—one that delivers value not only to investors and government, but also to the communities that host the nation's oil and gas resources.