The Nigerian Upstream Petroleum Regulatory Commission reported a decline in crude oil theft to about 5,000 barrels per day, contributing to a rise in oil production to 1.75 million barrels per day as of January 2025.
Commission Chief Executive, Engr. Gbenga Komolafe highlighted reforms and achievements in Nigeria’s oil and gas sector at the Renewed Hope Global Town Hall Conference in Abuja. This information was included in a press statement issued by Mrs. Olaide Shonola, Head of Public Affairs and Corporate Communication.
This recovery follows reforms and initiatives that have boosted production, which had fallen to 1.1 million barrels per day in 2022. The Commission forecasts that production will increase by another 1 million barrels per day by the end of 2026.
According to the statement, “Oil theft led to a drastic drop in production to 1.1 million bpd in 2022. He, however, noted that through kinetic and non-kinetic interventions, oil theft has significantly reduced to 5,000bpd, leading to a steady production increase to 1.7 million bpd.”
Komolafe outlined the government’s aim to increase production through the Project 1 MMBOPD initiative, which will involve collaboration between operators, service providers, financiers, and host communities. He also noted a rise in gas production to 7 billion standard cubic feet per day (SCFD), marking a positive change in the upstream sector.
He further highlighted the Commission’s ongoing reforms since the Petroleum Industry Act (PIA) was enacted in 2021, aimed at improving regulatory effectiveness and attracting investment.
Komlafe noted that “In May 2023, the commission unveiled its 10-year Regulatory and Corporate Strategic Plan (2023–2033), followed by a Regulatory Action Plan for 2024, detailing key industry reforms.”
These reforms are designed to boost oil and gas reserves and production, enhance transparency in hydrocarbon accounting, achieve cost efficiency and decarbonization, ensure host community stability, and reduce the carbon footprint of upstream operations.
Speaking on Nigeria’s oil and gas potential and global standing, Komolafe highlighted that Africa is home to five of the world’s top oil-producing countries, with Nigeria ranking as the continent’s second-largest oil reserve holder and the largest gas reserve holder. Nigeria’s oil reserves are estimated at 37.5 billion barrels, while its gas reserves stand at 209 trillion cubic feet.
He further noted that oil production in Nigeria now averages 1.75 million barrels per day, with gas production reaching 7 billion standard cubic feet per day. The Carbon Credits Earning Framework, he added, aims to monetize decarbonization efforts while encouraging sustainable energy practices.
Komolafe also reported that the NUPRC has exceeded its revenue targets, achieving an 84% increase over its budgeted revenue in 2024. To strengthen fiscal transparency, the Commission has introduced regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems, all aimed at reducing revenue leakages and crude oil theft.
Regarding community relations, he disclosed the establishment of 137 Host Community Development Trusts (HCDTs) to promote local participation and stability in oil-producing regions.
Komolafe reiterated the NUPRC’s dedication to working with global investors, financiers, and energy stakeholders to fully harness the nation’s hydrocarbon potential and promote sustainable development.
