From Adanna Nnamani, Abuja
Nigeria’s oil and gas sector has achieved remarkable growth, with the country’s rig count increasing from an average of eight in 2021 to 38 in 2024, representing a 79% increase.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, disclosed this during the Petroleum Industry Stakeholders’ Forum in Abuja on Thursday.
Komolafe, while highlighting the significant strides made in the upstream petroleum sector, noted that oil production rose by 26% between April 2023 and November 2024, while national oil and gas reserves increased by 1.45% and 0.206%, respectively, compared to 2023.
He attributed these gains to effective policies, industry collaboration, and enhanced security measures, which led to a 40% reduction in oil theft and production delays.
“Your leadership in seeking and promoting sustainable growth in the oil and gas industry through the issuance of appropriate policies is remarkable and has led to visible positive outcomes, giving renewed confidence to different stakeholders in the industry, increasing investment and production,” he said.
The NUPRC boss pointed out that Nigeria’s current output averages 1.7 million bpd, leaving a deficit of approximately 350,000 bpd.
With the 2025 national budget targeting crude oil production of 2.062 million barrels per day (bpd) at $75 per barrel, he stressed the urgent need to close this current gap.
To address this shortfall, he said the NUPRC has launched the “1M Barrels Per Day Incremental Production Initiative,” which promotes synergy across the upstream value chain.
Komolafe further outlined five key areas of focus for 2025, including the effective implementation of the 1M Barrels Per Day Initiative, enhancing hydrocarbon measurement accuracy through improved metering and advanced cargo regulations, and digitizing regulatory activities to improve compliance and efficiency.
Other areas of focus are: reducing the unit cost of oil production to boost revenue, as well as conducting licensing bid rounds to revive non-performing assets in line with the Petroleum Industry Act (PIA) 2021.
Additionally, Komolafe announced that Abuja will host the headquarters of the Africa Energy Bank (AEB), facilitated by the National Data Repository (NDR). He described the development as a significant boost for job creation and financial support for the oil and gas industry.
“Ladies and Gentlemen, in a dynamic and ever-evolving global energy landscape, our collective actions will determine not only the growth of our industry but also its resilience in adapting to challenges and seizing emerging opportunities. As Henry Ford once said, ‘Coming together is a beginning, keeping together is progress, working together is success.’ It is my belief that this platform will bring together our diverse expertise and resources that will strengthen our collective partnership.
“At the NUPRC, we are committed to ensuring our regulatory processes are clear and efficient to promote industry growth, creating a regulatory ecosystem that encourages investment, fosters innovation, and ensures our global competitiveness.
“Let us seize this opportunity to build stronger relationships and pave the way for a robust and sustainable upstream petroleum sector for Nigeria. I look forward to our discussions and the collaborations that will emerge from this,” he said.