The Nigerian Upstream Petroleum Regulatory Commission has announced significant progress in boosting the oil and gas sector, including the funding of a building to house the African Energy Bank in Abuja.
The move is part of efforts to position Nigeria and Africa for the coming oil boom.
Speaking at a stakeholders’ forum in Abuja on Thursday, the commission’s Director General, Gbenga Komolafe, shared the regulator’s achievements and projections for the industry by 2025.
Komolafe highlighted the potential impact of the incoming U.S. President, Donald Trump, on the global oil and gas market.
He noted that Trump’s administration is expected to adopt pro-oil and gas policies, contrasting with his predecessor’s focus on renewables.
“Renewable energy firms experienced falls, with First Solar, the largest solar company in the United States, falling by more than 10%.
“These market reactions suggest that Trump’s second term will prioritise traditional energy sectors, potentially limiting support for renewables while accelerating oil and gas expansion,” Komolafe added.
“This is good news for the Nigerian upstream as we do not exist in isolation.
“This brings great hope and new vitality for us to focus on the purpose of developing the industry,” he added.
The NUPRC boss highlighted remarkable progress in the oil and gas sector, including a 1.45 percent increase in the country’s oil reserves and a 0.206 percent increase in gas reserves compared to 2023.
A 26% increase in oil production between April 2023 and November 2024, growth from an average of eight rigs in 2021 to 38 in 2024, representing a 79% increase.
Collaboration with security agencies led to a more than 40% reduction in oil theft and deferment over the past year.
Komolafe reiterated the NUPRC’s target of achieving 2.1mn barrels per day (bpd) in production to meet Nigeria’s 2025 budget benchmark of 2.062mn bpd at $75 per barrel.
“Our current production is averaging 1.7 million barrels, leaving a deficit of about 350,000 barrels to be bridged. To avert budget deficit and revenue gap, the commission launched the Project 1M Barrel Per Day Incremental Production Initiative during its 3rd-year anniversary,” he explained.
In a strategic move to enhance Nigeria’s role as the continent’s energy hub, NUPRC has provided a building to host the headquarters of the African Energy Bank in Abuja.
“In line with boosting Nigeria’s aspiration of becoming the energy hub of the continent, the Commission through the National Data Repository has provided a building to host the Africa Energy Bank Headquarters. This gesture will fast-track the operationalization of the Bank, which will dovetail into job creation and financial support for the oil and gas business,” Komolafe said.
The NUPRC boss outlined a five-point agenda to drive growth and innovation in the sector, Ensuring increased production to meet budgetary targets, Implementing advanced metering and cargo regulations.
Promoting efficiency and compliance through digital tools, Reducing unit costs per barrel to maximize federation revenue, Conducting licensing bid rounds and enforcing the “drill or drop” provisions of the Petroleum Industry Act (PIA) 2021.
Komolafe stressed NUPRC’s commitment to promoting innovation, transparency and global competitiveness in Nigeria’s upstream oil and gas sector.
“Our goal remains to create a transparent and efficient regulatory environment that fosters growth and ensures that Nigeria remains a significant player in the global energy market,” he concluded.
