The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that crude oil theft in Nigeria has dropped to 5,000 barrels per day, contributing to a rise in oil production to 1.75 million barrels per day (bpd) as of January 2025. Commission Chief Executive, Gbenga Komolafe, shared this update while outlining key reforms and achievements in Nigeria’s oil and gas sector under the current administration at the Renewed Hope Global Town Hall Conference in Abuja. A statement released on Sunday by the Head of Public Affairs and Corporate Communication, Olaide Shonola, attributed this success to a combination of kinetic and non-kinetic interventions.
Komolafe highlighted that crude oil production, which had plummeted to 1.1 million barrels per day (bpd) in 2022 due to rampant oil theft, has now rebounded to 1.7 million bpd. He projected an additional one million bpd increase by the end of 2026.
Government Initiatives to Boost Oil and Gas Production
The Project 1 MMBOPD initiative has been launched to further enhance production through collaboration among industry operators, service providers, financiers, and host communities.
Komolafe also reported that gas production has surged to 7 billion standard cubic feet per day, marking a significant improvement in the upstream sector.
Since the enactment of the Petroleum Industry Act (PIA) in 2021, NUPRC has introduced several regulatory reforms aimed at:
Increasing oil and gas reserves and production, Enhancing hydrocarbon accounting transparency, Achieving cost efficiency and decarbonization, Ensuring host community stability, Reducing the carbon footprint of upstream operations
Komolafe emphasized Nigeria’s role in Africa’s energy landscape, stating that Africa is home to five of the world’s top oil-producing nations, with Nigeria ranking second in oil reserves and first in gas reserves.
Oil reserves: 37.5 billion barrels, Gas reserves: 209 trillion cubic feet, Current oil production: 1.75 million bpd, Gas production: 7 billion standard cubic feet per day
As part of efforts to attract investment, NUPRC launched the 2024 Licensing Round, offering 24 oil and gas assets to investors. The commission conducted international roadshows in Houston, Miami, London, and Paris to showcase Nigeria’s energy potential.
Additionally, the Nigeria Gas Flare Commercialisation Programme is a key part of the country’s energy transition strategy. The initiative aims to:
Eliminate routine gas flaring, Reduce methane emissions, Encourage carbon capture technologies
The Carbon Credits Earning Framework has also been introduced to monetize decarbonization efforts and promote sustainable energy practices.
NUPRC has consistently surpassed revenue targets, exceeding its 2024 budgeted revenue collection by 84%. To ensure fiscal transparency, the commission has implemented:
Fiscal oil price determination frameworks, cargo declaration systems to curb revenue leakages and oil theft.
To enhance host community relations, 137 Host Community Development Trusts have been established, fostering local participation and stability in oil-producing regions. The Alternative Dispute Resolution Centre has also been set up to efficiently resolve conflicts and minimize disruptions in the sector.
Nigeria’s Readiness for Global Energy Investment
Komolafe reaffirmed Nigeria’s commitment to creating a stable regulatory environment, investment-friendly policies, and global competitiveness. He noted that with:
A stable political climate, A growing gas economy, a clear roadmap for energy transition
Nigeria is now a prime destination for energy investments in Africa. NUPRC remains dedicated to collaborating with global investors, financiers, and energy stakeholders to unlock Nigeria’s full hydrocarbon potential while ensuring sustainable development.
