NIGERIA UNVEILS BOLD OIL SECTOR REFORMS TO BOOST PRODUCTION AND ATTRACT GLOBAL INVESTORS

Nigeria launches bold oil sector reforms to boost production, attract investors, and reclaim its leadership in Africa’s energy industry.

Nigeria Africa Reforms Investors Oil and gas Regulatory action plan Digital innovation.
Mr. Gbenga Komolafe the Chief Executive Officer of NUPRC
Mr. Gbenga Komolafe the Chief Executive Officer of NUPRC



Nigeria is implementing comprehensive reforms in its upstream oil and gas sector as part of a high-stakes initiative to regain dominance in Africa’s petroleum investment landscape and increase crude oil production to 2.5 million barrels per day by 2026.

At the 50th anniversary conference of the Nigerian Association of Petroleum Explorationists in Lagos, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, unveiled the commission’s Regulatory Action Plan (RAP) a framework designed to dismantle long-standing industry bottlenecks, restore investor confidence, and elevate Nigeria’s competitiveness in the global oil market.

“The RAP signals to domestic and international investors that Nigeria is ready to lead with clarity, confidence, and competitiveness,” Komolafe declared, stressing that the new strategy aligns with the 10-Year Strategic Plan of the commission and is anchored on the Petroleum Industry Act.

The RAP focuses on fiscally attractive terms for offshore, deepwater, and gas-based investments, transparent and timely licensing rounds, and digital-driven efficiency. Already, Nigeria’s rig count has jumped from eight in 2021 to 43, with a target of 50 by the end of this year, an indicator of revived investor interest.

Komolafe highlighted the success of recent licensing rounds, including the 57 Petroleum Prospecting Licenses of 2022 and the 2024 Licensing Round, describing them as the most transparent and competitive in Nigeria’s history. Fiscal incentives such as competitive royalty regimes and zero hydrocarbon tax for specific projects have also been introduced to support project viability.

A key plank of the reforms is the Project One Million Barrels Initiative, launched in 2024, which seeks to scale up production from the current average of 1.7–1.83 million barrels per day to 2.5 million bpd by 2026. This is being achieved through the reactivation of dormant fields, fast-tracked approvals, and operational efficiencies across the value chain.

Komolafe further revealed that 37 new evacuation routes have been approved to combat crude theft and secure hydrocarbon assets, while the enforcement of the Domestic Crude Supply Obligation is ensuring reliable feedstock for local refineries, thereby strengthening Nigeria’s energy security.

He noted that digital innovation, particularly through the revitalised National Data Repository, Africa’s largest petroleum database, has transformed investment decision-making, enabling seismic reprocessing, advanced basin analysis, and targeted data acquisition.

“Our reforms are already showing results. It reflects the commission’s readiness to confront the realities of the present, restore investor confidence, and elevate Nigeria’s global standing as a prime investment destination in the upstream oil and gas space,” Komolafe affirmed.

Comments

You must be logged in to comment.