By SpringsNewsNG | February 18, 2025

Nigeria’s crude oil production has risen to 1.75 million barrels per day (BOPD), with gas output at 7 billion standard cubic feet per day (SCFD), according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The agency has also set an ambitious target to boost production by an additional 1 million BOPD by 2026.

Steady Recovery from Oil Theft Crisis

Gbenga Komolafe, Chief Executive of NUPRC, disclosed these figures at the Renewed Hope Global Town Hall Conference in Abuja, highlighting reforms and progress in Nigeria’s oil and gas sector.

He recalled that Nigeria’s crude output fell drastically to 1.1 million BOPD in 2022 due to rampant oil theft. However, a combination of kinetic and non-kinetic interventions has reduced oil theft to 5,000 BOPD, enabling a steady increase in production.

“Looking ahead, the government aims to increase production by 1 million BOPD by December 2026 under the Project 1 MMBOPD initiative,” Komolafe said, adding that the plan will leverage collaboration among operators, service providers, financiers, and host communities.

Regulatory Reforms to Attract Investment

Since the enactment of the Petroleum Industry Act (PIA) in 2021, NUPRC has implemented several reforms to enhance regulatory efficiency and attract investments. Key initiatives include:

• The 10-Year Regulatory and Corporate Strategic Plan (2023–2033), introduced in May 2023
• The 2024 Regulatory Action Plan, outlining major industry reforms

These efforts aim to:
✔️ Increase oil and gas reserves
✔️ Enhance transparency in hydrocarbon accounting
✔️ Reduce operational costs and carbon emissions
✔️ Strengthen host community relations
✔️ Minimize the environmental impact of upstream activities

Nigeria’s Energy Potential in Africa

Nigeria remains a dominant player in Africa’s energy sector, ranking as:
✅ The second-largest oil reserve holder on the continent, with 37.5 billion barrels of oil reserves
✅ The largest gas reserve holder, with 209 trillion cubic feet (TCF) of gas

Komolafe emphasized that Nigeria is positioning itself as a top destination for energy investments, thanks to regulatory stability, a growing gas economy, and a clear energy transition roadmap.

Ending Gas Flaring & Enhancing Transparency

The Nigeria Gas Flare Commercialization Programme (NGFCP) is a major part of the country’s energy transition strategy. Komolafe assured that the project is advancing steadily, with a focus on:

• Eliminating routine gas flaring
• Reducing methane emissions
• Promoting carbon capture technologies

To further enhance fiscal transparency and accountability in the oil and gas sector, NUPRC has implemented new regulations for:

• Hydrocarbon metering
• Fiscal oil price determination
• Cargo declaration systems to curb revenue leakages and crude oil theft

Boosting Local Participation & Reducing Disruptions

NUPRC has also strengthened host community relations by establishing 137 Host Community Development Trusts (HCDTs) to foster local participation and stability in oil-producing areas. Additionally, the Alternative Dispute Resolution Centre (ADRC) has been launched to resolve conflicts efficiently and reduce disruptions to oil and gas operations.

Nigeria Open for Energy Investments

“In light of all these developments, Nigeria is more ready for business than ever,” Komolafe stated, citing the government’s commitment to regulatory certainty, investment-friendly policies, and global competitiveness.

“With a stable political environment, a growing gas economy, and a clear roadmap for energy transition, Nigeria is positioning itself as Africa’s prime energy investment hub,” he concluded.

NUPRC reaffirmed its commitment to collaborating with global investors, financiers, and energy stakeholders to unlock Nigeria’s full hydrocarbon potential while ensuring sustainable development.