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| Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe |
... Approved 79 FDPs with $39.98 bn investment in Two Years
... Rig count jumps by 762.5%
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the nation’s petroleum industry is on a fast-track to recovery, following the implementation of the Petroleum Industry Act (PIA), which established the Commission in 2021.
In a statement issued on Sunday, the Commission highlighted increased industry activity, enhanced revenue to the Federation, and a surge in social infrastructure development in host communities. This growth, it said, is driven by billions of dollars in asset farm-out deals, field re-entry and new development programs, exploration licensing rounds, and gas commercialization efforts.
According to Eniola Akinkuotu, Head of Media and Strategic Communication at the NUPRC, the Commission has recorded 16 major improvements in the petroleum industry since it replaced the defunct Department of Petroleum Resources under the PIA. These achievements were made despite legacy challenges inherited from the pre-PIA era.
Mr. Akinkuotu stated that the Commission exceeded its revenue targets for the Federation by 18.3% in 2022, 14.65% in 2023, and an impressive 84.2% in 2024, despite global market volatility and production fluctuations.
Between 2024 and 2025, the Commission approved 79 Field Development Plans (FDPs), representing a potential investment of $39.98 billion. Of this, $20.55 billion was tied to 2024 approvals, while $19.43 billion has been approved so far in 2025.
Since its establishment, crude oil production has steadily risen, with current average daily production reaching 1.65 million barrels of oil per day (Mbopd). The Commission expects this to grow to 2.5 Mbopd by 2027 through its Project 1 Mbopd initiative.
Mr. Akinkuotu emphasized that the exploration bid round—considered the gateway for new entrants—has been digitized to ensure transparency and reduce human interference.
“It was the most transparent bid round on record in Nigeria’s upstream petroleum history as it leveraged digital technology, devoid of any human interference, in a manner adjudged to be in line with global best practices; which was even attested to by the Nigeria Extractive Industries Transparency Initiative (NEITI),” he said.
In addition to a transparent licensing process, the Commission has activated the “drill-or-drop” condition to prevent players from hoarding oil acreages.
“This is designed to ensure the optimal use of oil assets and prevent dormant fields from tying up potential reserves. This policy successfully identified 400 dormant oil fields and has also propelled complacent oil companies to take quick action,” he stated.
Oilfield activity has surged, with rig count rising by 762.5% in four years—from eight rigs in 2021 to 69 as of October 2, 2025—a strong signal of renewed investor confidence.
The Commission also reported the drilling and completion of 306 development wells between 2022 and 2025, marking significant progress in Nigeria’s upstream sector.
Further achievements include the issuance of Nigeria’s first Petroleum Exploration License (PEL) for a massive offshore geophysical survey spanning 56,000 km² of 3D seismic and gravity data. The Commission also reprocessed 17,000 line-kilometers of 2D seismic data and 28,000 square kilometers of 3D seismic data, leading to clearer imaging of petroleum systems and better-informed exploration decisions. Additional data includes: 11,300 km² of new 3D seismic data processed to PSDM and 80,000 km² of Multibeam Echo Sounding & Seafloor Geochemical Coring data
In 2024, the NUPRC approved several billion-dollar divestments, which it explained were aimed at allowing investors to re-order their portfolios and focus on deep offshore developments.
To enhance regulatory clarity, the Commission developed 24 forward-thinking regulations, with 19 already gazetted and five awaiting gazette.
“These forward-thinking Regulations serve as tools for transparency and creation of enabling investment climate and benchmark best practices,” the Commission stated.
As part of its gas flare elimination strategy under the Nigerian Gas Flare Commercialization Programme (NGFCP), the Commission has completed awards of flare sites to successful bidders, with the objective of attracting at least $2.5 billion in investments.
The NUPRC’s achievements have also garnered recognition. It received the 2024 Overall Best Performing Parastatal SERVICOM Unit (PSU) Award, along with the 2024 Best Performing PSU, Team B Award. It was also named Best Regulator 2025 by the Association of Energy Correspondents of Nigeria (NAEC) and received over 60 awards from various organizations.
Regarding host communities, the Commission reported that Host Community Development Trusts have so far remitted ₦122.34 billion and $168.91 million (over ₦358.67 billion combined, based on current exchange rates), funding 536 projects including schools, healthcare centers, roads, and vocational centers across the Niger Delta and beyond.
This development, the Commission said, has significantly curbed crude oil theft. Oil losses have dropped by 90%, from 102,900 barrels per day in 2021 to 9,600 bpd in September 2025.
Two key regulations—Upstream Measurement Regulation and Advanced Cargo Declaration Regulation—were credited with improving transparency in hydrocarbon accounting.
Regionally, the Gbenga Komolafe-led NUPRC has taken a leadership role by spearheading the formation of the African Petroleum Regulators Forum (AFRIPERF). The forum, launched during Africa Oil Week, was attended by 16 African countries, including Nigeria, Ghana, Somalia, South Africa, Angola, Kenya, and others.
“AFRIPERF provides regulators with the mechanism to harmonize oil and gas development policies to facilitate cross-border infrastructure development, benchmark fiscals and present strong voice for Africa in hydrocarbon advocacy globally,” the Commission said.
For the first time, the Commission has also significantly improved regulatory reporting and transparency across the sector, enabling investors, operators, and service providers to make data-driven decisions in what was once one of the world’s most opaque industries.
