The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced on Thursday that it is feasible to achieve a crude oil production target of 2.5 million barrels per day (bpd) by 2026, particularly with plans to reactivate shut-in and dormant oil wells.
Speaking in Abuja at the 2025 Energy Correspondents Association of Nigeria (ECAN) Conference, themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead”, the Commission’s Chief Executive, Gbenga Komolafe, highlighted that the NUPRC is also striving to reduce methane emissions by 60 per cent by 2031.
Komolafe noted that the approval of 37 new evacuation routes, alongside enhanced collaboration with national security agencies, has significantly reduced crude theft and improved accountability within the industry.
“Through our ‘Project One Million Barrels’ Initiative, launched in 2024, Nigeria is actively increasing crude oil production by reactivating dormant fields, expediting regulatory approvals, and boosting operational efficiencies throughout the upstream value chain.
“With a clear goal of raising production to 2.5 million bpd by 2026, the initiative has already shown considerable progress, with current unreconciled daily production averaging between 1.7 and 1.83 million bpd.
“Equally important is the protection and optimisation of national hydrocarbon assets. The approval of 37 new evacuation routes, complemented by intensified collaboration with national security agencies, has significantly curtailed crude theft and enhanced accountability across the sector. Simultaneously, the enforcement of the Domestic Crude Supply Obligation (DCSO) ensures a consistent supply of feedstock to local refineries, thereby strengthening Nigeria’s internal supply chains and fostering long-term economic resilience,” he stated.
Represented by the Head of Regulatory and Statutory Compliance, NUPRC, Kingston Chikwendu, Komolafe emphasised that Nigeria faces the dual challenge of managing the risks associated with a dynamic global energy market while seizing the vast opportunities these resources present for sustainable growth and energy security.
This is particularly significant for Nigeria, which, as he noted, holds approximately 30 per cent and 34 per cent of Africa’s oil and gas reserves, respectively.
Komolafe pointed out that the recent bid rounds, which were based on quality data access, regulatory certainty, and a reform agenda focused on investors, achieved unprecedented success. These included the 57 PPL awards of 2022, the 2022 Mini-Bid Round, and the 2024 Licensing Round.
While hydrocarbons continue to account for nearly 90 per cent of Nigeria’s foreign exchange earnings and 70 per cent of government revenue, he emphasised that Nigeria is acutely aware that the long-term viability of the energy sector relies on aligning growth with climate responsibility.
“Our gas-centric energy transition strategy is a cornerstone of this effort, underpinned by flagship initiatives such as the Decade of Gas, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative. Collectively, these programmes aim to eliminate routine gas flaring by 2030 and reduce methane emissions by 60 per cent by 2031,” he added.
Beyond infrastructure, the NUPRC is also advocating for the establishment of a transparent, competitive, and investor-friendly gas market, unlocking the commercial potential of an estimated 600+ trillion cubic feet of gas resources and positioning Nigeria as a central hub in the global energy transition.
He underscored the new frontier opportunities in onshore, shallow water, and deep offshore blocks, particularly in underexplored basins, facilitated by the new licensing rounds regime.
In a statement made available to journalists at the event, the Chief Executive of the NMDPRA, Farouk Ahmed, remarked that over the past four years, the Authority has implemented a series of reforms and initiatives aimed at enhancing industry compliance, improving service delivery, and fostering collaboration among stakeholders.
These efforts, he stressed, have led to improved monitoring mechanisms, data-driven decision-making, and the adoption of innovative technologies to bolster regulatory effectiveness.
Ahmed, represented by the NMDPRA spokesman, George Ene-Ita, stated that the Authority has successfully gazetted 18 regulations and developed guidelines and standard operating procedures for implementation in the sector.
Furthermore, he indicated that the organisation has undertaken aggressive automation of processes to improve service delivery and promote ease of doing business, noting that crude supply to domestic refineries rose from around 20,000 bpd in 2023 to over 40,000 bpd in 2025.
“Refined product supplies from local refineries to the domestic market have seen significant improvement. For instance, PMS supply increased from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, with a positive outlook ahead.
“The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested over N287 billion in various gas infrastructure projects involving 16 companies across 62 projects as of October 2025.
“The MDGIF has catalysed an additional $500 million investment in gas infrastructure by leveraging an MoU with Afreximbank to expand energy access and drive economic development.
“Key midstream and downstream facility development projects that have attracted significant investment include UTM Offshore, NLNG Train 7, the AKK gas pipeline, the OB3 gas pipeline, the AIPCC refinery, the Indorama fertiliser plant, and Greenville’s LNG & LCNG projects, along with Walthersmith Refinery Train 2 and Supertech’s Methanol Project.
“Additionally, 10 gas distribution licences were issued for 10 gas distribution zones, covering a pipeline network of 692 km, with a carrying capacity of 712 MMscf/day, connecting a total of 412 customers. The total investment value in this distribution system was estimated at $639.07 million, generating multiplier effects across energy, agriculture, industry, manufacturing, and socio-economic impacts,” he stated.
Moreover, Ahmed mentioned that 23 ‘License To Establish’ for refineries have been issued from 2021 to date, which, when constructed and commissioned, will add over 850,000 bpd refining capacity to the existing 1,125,000 bpd capacity.
The Major Energy Marketers Association of Nigeria (MEMAN) urged the authorities to allocate resources to build the technical, legal, and administrative skills needed across the new institutions and among industry partners.
Represented by Mohammed Al-Kazeem, MEMAN called for the streamlining of processes and the removal of unnecessary delays, as well as a review of licensing and permit workflows to eliminate redundant steps, set clear timelines and service level agreements, and digitise transactions where feasible.
“Ensure open access to infrastructure, enforce competition rules, guard against anti-competitive vertical integration, and make procurement and licensing processes transparent. A level playing field will lower prices, increase choice, encourage innovation, and protect consumers.
“Establish clear, public metrics for success: safer operations, timely project deliveries, free and fair market outcomes, increased local content, and visible socio-economic benefits for host communities. Regular, transparent reporting will build trust and allow for course correction,” MEMAN stated.
Additionally, the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, remarked that the gathering of media professionals, policymakers, and industry stakeholders was both timely and commendable, providing an essential platform to reflect on the progress made since the enactment of the PIA.
“However, we must also acknowledge that there are gaps requiring collective efforts to address, particularly in the areas of cultural and community development, energy transition, and sustainable implementation of arts provision,” Ekpo, represented by the Director of Gas in the Ministry of Petroleum, Ruth Mela-Nunghe, said.
Earlier, the ECAN Chairman, Mr. John Ofikhenua, stated that the PIA has brought structure, transparency, and renewed confidence to the oil and gas industry.
“However, our work is far from complete. The PIA is not a finished product; it is a living document. As technology evolves, global energy dynamics shift, and the world races towards cleaner and smarter energy solutions, we too must adapt,” he advised.
