The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), crude oil theft in Nigeria has dropped significantly to 5,000 barrels per day (BPD). This reduction has contributed to an increase in the country’s oil production, which has now reached 1.75 million barrels per day (BPD) as of January 2025.
The Commission Chief Executive, Gbenga Komolafe, shared this update at the Renewed Hope Global Town Hall Conference held in Abuja. He noted that both kinetic and non-kinetic measures were implemented to curb oil theft and stabilize production.
A statement from the Head of Public Affairs and Corporate Communication, Olaide Shonola, confirmed that these efforts helped Nigeria recover from the drastic decline in crude oil output, which had fallen to 1.1 million BPD in 2022. The improved security measures and regulatory reforms have since allowed production to climb steadily.
Komolafe projected that by the end of 2026, Nigeria’s oil output could increase by an additional one million barrels per day, further strengthening the nation’s position in the global energy market.
Beyond crude oil, the NUPRC also reported growth in Nigeria’s gas production, which has now reached 7 billion standard cubic feet per day. Komolafe noted that this reflects a positive shift in the upstream sector.
He also discussed the government’s Project 1 MMBOPD initiative, which aims to further increase production through collaboration among oil operators, service providers, financiers, and host communities. The initiative is expected to create new opportunities for investments and expand Nigeria’s hydrocarbon reserves.
Since the passage of the Petroleum Industry Act in 2021, the NUPRC has introduced several reforms to improve regulatory efficiency and attract investors. Komolafe noted that in May 2023, the commission launched a 10-year Regulatory and Corporate Strategic Plan (2023–2033) and a Regulatory Action Plan for 2024, both designed to strengthen Nigeria’s oil and gas industry.
These reforms focus on increasing oil and gas reserves, improving hydrocarbon accountability, reducing operational costs, ensuring community stability, and promoting environmental sustainability. Nigeria, which holds Africa’s largest gas reserves at 209 trillion cubic feet and 37.5 billion barrels of oil, continues to reinforce its position as a major energy hub.
Regarding investment opportunities, Komolafe noted that the 2024 Licensing Round, which offers 24 oil and gas assets to investors, has generated global interest. To attract more investors, the NUPRC held roadshows in Houston, Miami, London, and Paris, showcasing Nigeria’s energy potential.
On environmental sustainability, the Nigeria Gas Flare Commercialisation Programme remains a key focus. Komolafe noted that the initiative aims to eliminate routine gas flaring, cut methane emissions, and advance carbon capture technology. Additionally, the Carbon Credits Earning Framework seeks to monetize efforts in decarbonization and encourage sustainable energy practices.
Financially, the NUPRC has exceeded its revenue targets. In 2024, the commission surpassed its budgeted revenue collection by 84 percent, reflecting a strong financial performance. To enhance fiscal transparency, the commission has enforced stricter regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration to curb revenue losses and crude oil theft.
In its efforts to strengthen relationships with oil-producing communities, the commission has incorporated 137 Host Community Development Trusts. These trusts are designed to foster stability and ensure local participation in the industry. Additionally, the establishment of an Alternative Dispute Resolution Centre is expected to help resolve conflicts more efficiently and minimize disruptions in oil and gas operations.
