The Federal Government has reaffirmed its commitment to strengthening Nigeria’s fiscal and energy frameworks through continuous collaboration with international development partners.
The Permanent Secretary, Ministry of Petroleum Resources (MPR), Dr. Emeka Vitalis Obi, mni, stated this in Abuja during a joint engagement involving the Ministry, its regulatory agencies—the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—and the International Monetary Fund (IMF) Fiscal Affairs Department (FAD) Technical Assistance Mission on Climate Policy.
Dr. Obi explained that the Federal Government is seeking the continued technical support of the IMF’s Fiscal Affairs Department to design a transparent and resilient price modulation mechanism. He said such a mechanism would help cushion domestic price shocks, insulate markets from extreme global volatility, and preserve fiscal discipline.
In his welcome address, the Permanent Secretary described the IMF mission as both timely and strategic. He noted that it aligns with the government’s ongoing efforts to strengthen Nigeria’s fiscal framework amid global energy market uncertainties, post-pandemic recovery, and growing climate-related fiscal pressures.
Dr. Obi emphasized that the removal of the general fuel subsidy was a bold and necessary decision aimed at restoring fiscal stability and redirecting public expenditure toward critical infrastructure and social welfare. He said this move also supports the long-term sustainability of the nation’s energy sector.
He further noted that Nigeria remains committed to reducing methane emissions and ending routine gas flaring. According to him, initiatives such as the Nigeria Gas Flare Commercialisation Programme (NGFCP) and emerging carbon-credit frameworks are helping to promote gas utilization across power generation, fertilizer production, and Compressed Natural Gas (CNG) markets.
“These measures directly support Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and align the petroleum sector with global environmental, social, and governance best practices,” he stated.
Dr. Obi called for continued IMF partnership, both technical and financial, to enhance Nigeria’s fiscal analytics, climate policy modelling, and carbon pricing readiness.
Responding, the Leader of the IMF Technical Team, Mr. Diego Mesa, commended the Permanent Secretary for providing an insightful overview of Nigeria’s current energy and fiscal landscape. He explained that the mission’s presence in Nigeria, at the invitation of the Federal Ministry of Finance, is part of ongoing engagements on fiscal reforms, sustainable development, and climate policy.
Mr. Mesa said the IMF team’s focus within the Ministry of Petroleum Resources includes fossil fuel and carbon taxation frameworks. He expressed optimism that the collaboration would help Nigeria strengthen its fiscal resilience while promoting environmentally sustainable policies.
During the technical session, the Director of Planning, NUPRC, Mr. Abdul-Afeez Balogun, stated that the Commission, established under the Petroleum Industry Act (PIA) 2021, is mandated to provide technical and commercial regulatory oversight of the upstream petroleum sector. He said the Commission is giving priority to eliminating gas flaring, curbing venting, and reducing fugitive methane emissions as part of its sustainable regulatory objectives.
Also speaking, the Director of Planning, NMDPRA, Mr. Ayodeji O. O., explained that the Authority regulates pipelines, gas processing, distribution, pricing, and consumer protection. He added that the Authority is currently refining tariff methodologies for pipeline storage and gas processing facilities to ensure fair returns on investment while protecting consumer interests.
The engagement, attended by Directors of Technical Departments in the Ministry of Petroleum Resources and senior officials of the NUPRC and NMDPRA, ended with a shared commitment to deepen collaboration aimed at advancing Nigeria’s climate and fiscal resilience agenda.
