The Federal Government has reiterated its commitment to expanding Nigeria’s crude oil production, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirming that the country is on course to reach 2.5 million barrels per day (bpd) by 2026.
The announcement was made by NUPRC Chief Executive Gbenga Komolafe during the 2025 PENGASSAN Energy and Labour Summit in Abuja, themed “Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment, and Incremental Production.”
Komolafe highlighted the government’s strategic approach to unlocking deepwater potentials, reactivating dormant fields, and fast-tracking approvals for new projects as key drivers toward this production milestone.
According to Komolafe, reforms under the Petroleum Industry Act 2021, coupled with recent Presidential Executive Orders, have repositioned Nigeria as a competitive investment destination.
“Average contracting cycles have been reduced from 36 months to six months, while fiscal terms have been made more attractive for investors,” he said.
A major thrust of the strategy involves the “Project One Million Barrels per Day” initiative, aimed at incrementally increasing production through cluster and nodal development strategies.
These strategies optimize costs and timelines by leveraging shared infrastructure and tiebacks to existing floating production storage and offloading (FPSO) facilities such as Bonga, Egina, and Agbami.
The NUPRC boss further disclosed that reactivation of dormant fields, accelerated approvals, and the deployment of advanced recovery techniques have already boosted production from a baseline of 1.46 million bpd in October 2024 to 1.8 million bpd today.
“With this momentum, we are firmly on track to reach our 2.5 million bpd target by 2026,” Komolafe stated.
On energy transition, Komolafe emphasized that Nigeria remains focused on a gas-centric decarbonization pathway, balancing climate concerns with the country’s ongoing hydrocarbon-dependent energy needs.
He noted that while global low-carbon energy investment surpassed $2.1 trillion in 2024, hydrocarbons will continue to play a central role in Africa and Asia for decades.
Komolafe also addressed the renewal of marginal field licenses, noting that NUPRC had conducted thorough technical assessments on a case-by-case basis.
“License renewals will be merit-based, with awardees assessed against milestones set in the Petroleum Industry Act.
The results have been submitted to the Minister of Petroleum for approval,” he said.
He stressed that compliance is milestone-driven rather than time-driven, allowing operators to meet obligations progressively.
The transparent approach ensures that only companies meeting technical and operational requirements secure renewals, enhancing accountability and sector efficiency.
The government’s push to achieve 2.5 million bpd aligns with Nigeria’s broader economic and energy strategy, aimed at increasing revenue, attracting foreign investment, and bolstering energy security.
With improved regulatory frameworks, stakeholder collaboration, and investment in deepwater and onshore projects, the nation’s oil sector is poised for sustainable growth in the coming years.
Komolafe concluded that Nigeria’s upstream sector is entering a transformative phase, with strategic reforms, technological adoption, and enhanced governance set to unlock the country’s full hydrocarbon potential while supporting economic diversification.