The ongoing reforms in the oil and gas sector should position Nigeria as a global leader in energy security and economic growth, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has said.
The CCE who spoke at the Renewed Hope Global Town Hall Conference in Abuja on Saturday highlighted the benefits of the reforms and achievements in Nigeria’s oil and gas sector.
Komolafe said Nigeria’s oil and gas potential and global positioning has put Africa among five of the world’s top oil-producing countries.
Reputed to be Africa’s second-largest oil reserve holder and the largest gas reserve holder, Nigeria’s oil reserves are estimated at 37.5 billion barrels, while gas reserves stand at over 209 trillion cubic feet (TCF).
In terms of oil production capacity, the CCE said Nigeria’s output now averages 1.75 million barrels per day (BOPD), with a gas production rate of 7 billion standard cubic feet per day (SCFD).
On regulatory reforms and achievements, the NUPRC boss stated that since the enactment of the Petroleum Industry Act (PIA) in 2021, the Commission, which is the apex regulatory authority in the industry, has driven several initiatives to enhance regulatory effectiveness and attract new investments.
Apart from the unveiling of its 10-year Regulatory and Corporate Strategic Plan (2023–2033) in May 2023, he said the Commission launched a Regulatory Action Plan for 2024, detailing key industry reforms.
These reforms, he pointed out, focussed on increasing the country’s oil and gas reserves and production, enhancing hydrocarbon accounting transparency, achieving cost efficiency and decarbonisation in upstream operations, ensuring stability in host communities, and reducing the carbon footprint of oil and gas activities.
On the 2024 Licensing Round and Investment Drive, Engr. Komolafe highlighted that NUPRC launched the exercise with an offer of 24 oil and gas assets to prospective and existing investors, consisting indigenous and multinational operators.
To attract global participation, he said the Commission held roadshows in international oil, gas and technology hubs in Houston, Miami, London and Paris, to showcase Nigeria’s energy potential.
Komolafe also acknowledged challenges, including the growing incidence of crude oil theft that led to a drastic drop in production to 1.1 million BOPD in 2022, adding that through kinetic and non-kinetic interventions, the Commission was able to significantly reduce crude oil theft to about 5,000 BOPD, leading to a steady production increase to the current level of an average of 1.7 million BOPD.
Looking ahead, the CCE said the government aims to increase daily oil production capacity by one million barrels by December 2026 under the “Project One Million Barrels Per Day” initiative, leveraging collaboration among operators, service providers, financiers and host communities.
On the Nigeria Gas Flare Commercialisation Programme (NGFCP), the CCE assured that the project was at the forefront of the country’s energy transition strategy aimed at eliminating routine gas flaring, reduce methane emissions, and encourage carbon capture technologies.
In addition, he said the Carbon Credits Earning Framework seeks to monetise decarbonisation efforts, while promoting sustainable energy practices in the industry.
On revenue growth and financial performance, coupled with industry challenges, Komolafe confirmed that the NUPRC has consistently exceeded its price revenue targets, citing the figures in 2024 where the Commission outperformed its budgeted revenue collection by 84 percent, marking a strong financial performance for Nigeria’s upstream sector.
To ensure fiscal transparency, he said NUPRC implemented regulations on hydrocarbon metering, fiscal oil price determination, and cargo declaration systems to curb revenue leakages and crude oil theft.
On Host Community Engagement and Regulatory Transparency, the CCE disclosed that the Commission incorporated 137 Host Community Development Trusts (HCDTs) to foster local participation and stability in oil-producing regions.
Also, he said the Alternative Dispute Resolution Centre (ADRC) was established to resolve conflicts efficiently, and reduce disruptions to oil and gas operations.
Consequently, Engr. Komolafe reaffirmed Nigeria’s readiness for business now more than ever, citing the government’s commitment to regulatory certainty, investment-friendly policies, and global competitiveness.
“With a stable political environment, a growing gas economy, and a clear roadmap for energy transition, Nigeria has positioned itself as a prime destination for energy investments in Africa,” he said.
He reiterated NUPRC’s commitment to collaborating with global investors, financiers, and energy stakeholders to unlock the nation’s full hydrocarbon potential, while driving sustainable development.
