Nation
FG Launches NUCOP To Crash Crude Production Cost, Boost Competitiveness
Efforts to achieve the $10/barrel crude production target deepened, yesterday, as the Federal Government officially launched the Nigerian Upstream Cost Optimisation Programme (NUCOP).
Speaking at the launch, the Minister of State, Petroleum Resources, Chief Timipre Sylva, said that the aim of the new initiative was to boost industry collaboration and process enhancement.
According to him, of all the nine priority areas given to the ministry as its operational mandate, reduction of crude oil extraction cost remains pivotal.
He said that the ministry has since identified some initiatives to tackle the challenges stacking against lower production cost, adding that the cost in Nigeria was exceptionally high compared to other oil-producing nations like Iran and Saudi Arabia.
Sylva added that high cost would rob the country its desire to attract investments and remain globally competitive.
He added that capital expenditure, operational cost, policy-related elements, weak collaboration, capacity and capability issues, facility reliability, single sourcing syndrome, high magnitude of crude loss, multiplicity of tariff, among others, are issues that need to be urgently tackled.
“Members of the NUCOP are officials of the Petroleum Ministry, DPR, NCDMB, PETAN, NNPC, among others”, he said.
“They’ve found short and medium-term solutions. Average total cost is now below $30/barrel for JV contract and less than $20 for PSC. We need to do more. Engagement should reach a consensus on cost reduction.
“We are making a case for shared services. Our target is 3mpd daily production and 40 billion barrels reserves”.
Sylva assured the gathering that the executive arm of government was on the same page with the legislature to pass the Petroleum Industry Bill (PIB) this year.
“We want to position Nigeria as the best designation for investment in the hydrocarbon sector. The benefits of NUCOP are many. It includes; reducing the contracting cycle to three months or less, prompting efficiency, profitability and competitiveness. Its success is dependent on collaboration of stakeholders”, he added.
In his remarks, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said Nigeria must pull down production cost, describing it as a self interest pursuit.
“There’s a global energy transition. Less cost-efficient companies cannot survive today. $50/barrel production cost cannot survive. There are issues around synergy that we’ve not achieved.
“There are issues of security. Many companies are hiring their own armies and we can’t continue like that. Issues of taxes and others have to be addressed. Our practices must change so that service providers can deliver.
“So, we can achieve economic growth and our partners can derive benefits. It’s not CSR but pure business. We must have the best of fiscal environment and policies so that cost of operation can come down and our target is at least $10/barrel.
“If we do these, tax benefits will increase and profit margin will increase. This is a task that must be done. This partnership will help the country. Crude has hit the $60 and it comes with a product price increase. We are trying to keep the country wet. We are engaging with labour. No provision for subsidy in the budget”, the NNPC boss explained.
In his remarks, the Chairman, Senate Committee, Upstream, Albert Bassey Akpan, said there was a need to take a second look at production cost for Nigeria to remain competitive.
“We must pay attention to the passage of PIB and pass it before the end of 2021. We need to look at tax structure and security issues. There is need for relevant stakeholders to harmonize their logistics structure”, he said
Also commenting, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, said that the discussion on cost reduction was long overdue.
He assured of the board’s support and collaboration towards achieving the target.
“Cost reduction comes with some pain and what’s important is how the business will survive to sustain jobs. Local content is a panacea for cost reduction. There is massive cost savings when Nigerians run the business unlike when expatriates flood the business”, he noted.
For the President of the Petroleum and Natural Gas Workers Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Usifo, he urged the gathering to look at expatriates’ costs as many of them are earning fat pay doing jobs capable Nigerians should handle.
The Rivers State Commissioner for Education, Dr. Peters Nwagor, has commended the orderly conduct of the ongoing 2026 West African Senior School Certificate Examination in the state and urged schools to sustain the standard.
Dr. Nwagor gave the commendation on Tuesday during a monitoring tour of selected secondary schools in Port Harcourt and environs where the WAEC exam is ongoing.
The commissioner, who was accompanied by directors and monitors from the Ministry of Education, said he was impressed with the peaceful atmosphere at the centres visited.
“The students conducted themselves properly and wrote their papers under conducive conditions. Invigilators and supervisors also performed their duties professionally,” he stated.
Nwagor noted that the Rivers State Government had invested heavily to ensure the smooth and credible conduct of the examination across the state
He urged candidates to reciprocate government’s effort by shunning all forms of examination malpractice and focusing on their studies.
“Government has done so much to ensure successful examinations in our schools. Students should take advantage of it by remaining focused,” the commissioner said.
While no case of malpractice was recorded in the centres inspected, Dr. Nwagor warned that any principal, teacher, invigilator, or official caught aiding malpractice would face strict sanctions in line with regulations.
He also commended school administrators, teachers, WAEC officials, and security personnel for upholding the integrity of the process.
Centres visited included County Grammar School, Ikwerre/Etche; Government Comprehensive Secondary School, Borokiri; Government Secondary School, Borokiri; and Pabod Model Secondary School.
Rivers State University and the Otonti Nduka Foundation for Values Education jointly hosted a two-day National Conference on 8 and 9 May 2026 to examine the state of values in Nigeria.
The two days conference held at Rivers State University convocation arena brought together academics, policymakers, legal experts and education leaders under the theme _“Trends and Challenges in Upholding Values in Nigeria.”_
The gathering focused on policy gaps, curriculum reform, and the role of ethics in public service and education.
The event opened on Friday with remarks from Vice Chancellor Prof. Chief Isaac Zeb-Obipi, who stressed the need to address declining moral and civic values across Nigeria’s education and public sectors. A book of abstracts for the plenary sessions was also presented to participants.
Key speakers included former Attorney General Chief Dr Kanu Agabi, SAN; NERDC Executive Secretary Prof. Shehu Salisu; Prof. Hauwa Imam, FNAE, of the University of Abuja; former Rivers SUBEB Chairman Ven Dr Fyneface Akah, ; former NIMASA DG Dr Hon. Dakuku Adol-Peterside; and RSU Director of ICT Prof. Sunny Orike.
Discussions centered on integrating values education into schools, tertiary institutions and public institutions, alongside the impact of technology on moral development among young Nigerians. Panel and plenary sessions produced practical recommendations for curriculum and policy reform.
On Saturday, the foundation marked its centenary with the unveiling of the book _Otonti Nduka in History_, launched by Chief Engr. Grant Offor, FNSE. The Nigerian Academy of Education held a ceremonial procession led by its President Prof. Olu Jegede and the Ikwerre Professors Forum.
In a communiqué, participants called for stronger collaboration between government, civil society and academia to mainstream values education nationwide. They recommended reviewing teacher training curricula and expanding digital platforms to promote ethical civic engagement, with the foundation pledging to share the outcomes with education authorities for implementation.
Dignitaries present included Ogbakor Ikwerre Worldwide as Chief Host, Prof. Emeritus Chief T. Uzodimma Nwala, the Ikenga 1 of Mbaise and first philosophy student of Prof. Otonti Nduka, alongside scholars and community leaders.
Amadi Akujobi
