The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a significant reduction in the volume of stolen crude oil in the country, now down to 5,000 barrels per day. This has led to an increase in oil production, reaching 1.75 million barrels per day (bpd) as of January 2025.
This development was shared by the Commission’s Chief Executive, Gbenga Komolafe, during the Renewed Hope Global Town Hall Conference in Abuja. He outlined the success of both kinetic and non-kinetic interventions in curbing oil theft, which had previously contributed to a drop in production to just 1.1 million bpd in 2022.
Komolafe also projected an additional 1 million bpd increase by the end of 2026. “The reduction in oil theft from 1.1 million to 5,000 barrels per day has significantly helped increase production to 1.7 million bpd,” he noted in a statement released by the Commission’s Head of Public Affairs and Corporate Communication, Olaide Shonola, on Sunday.
Furthermore, Komolafe elaborated on the government’s goal to further enhance production through the “Project 1 MMBOPD” initiative. This initiative emphasizes collaboration between operators, service providers, financiers, and host communities.
In terms of gas production, Komolafe revealed that gas output has risen to 7 billion standard cubic feet per day, marking positive growth in the upstream sector. He attributed these gains to the reforms initiated after the passage of the Petroleum Industry Act (PIA) in 2021. He highlighted that in May 2023, NUPRC launched its 10-year Regulatory and Corporate Strategic Plan (2023–2033), followed by a 2024 Regulatory Action Plan aimed at enhancing regulatory effectiveness and attracting investments.
The goals of these reforms include increasing oil and gas reserves, improving hydrocarbon accounting transparency, achieving cost efficiency, supporting decarbonization, ensuring host community stability, and reducing the carbon footprint of upstream operations.
In discussing Nigeria’s position in the global oil and gas industry, Komolafe noted that Africa is home to five of the world’s top oil producers, 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.
On the 2024 Licensing Round, the Commission launched a new round offering 24 oil and gas assets to investors. To encourage global participation, NUPRC conducted roadshows in Houston, Miami, London, and Paris to highlight Nigeria’s energy potential.
Komolafe also emphasized the Nigeria Gas Flare Commercialisation Programme, a key initiative in the country’s energy transition strategy. The program aims to eliminate routine gas flaring, reduce methane emissions, and promote carbon capture technologies. Additionally, the Carbon Credits Earning Framework will support the monetization of decarbonization efforts while advancing sustainable energy practices.
On revenue and financial performance, Komolafe reported that NUPRC exceeded its revenue targets in 2024, surpassing budgeted collections by 84%. This strong financial performance reflects the Commission’s commitment to ensuring fiscal transparency and addressing industry challenges, such as crude oil theft and revenue leakages. New regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems have been put in place to tackle these issues.
In terms of host community engagement, NUPRC has formed 137 Host Community Development Trusts to enhance local participation and stability in oil-producing regions. The establishment of the Alternative Dispute Resolution Centre also aims to resolve conflicts efficiently, minimizing disruptions to operations.
Komolafe concluded by reaffirming Nigeria’s readiness to attract global investment, citing the government’s commitment to regulatory certainty, investment-friendly policies, and global competitiveness. With a stable political environment and a growing gas economy, Nigeria is positioning itself as a leading energy destination in Africa. He reiterated NUPRC’s commitment to collaborating with international investors, financiers, and energy stakeholders to unlock the nation’s full hydrocarbon potential and promote sustainable development.
