• Surpassed targets by over 84%
• Approved 79 FDPs with $39.98 bn investment profile
• Rig count jumps by 762.5%
• HCDTF mops up N358.67 bn

Sopuruchi Onwuka

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has declared that the Nigerian petroleum industry in on the path to speedy recovery following the enactment and activation of the Petroleum Industry Act which established the new regulatory agency in 2021.

The commission said in a statement on Sunday that heightened activity in the industry comes with enhanced revenue dividends to the federation as billions of asset farm-out deals, field reentry and new development programmes, exploration licensing rounds and gas commercialization lead to enhanced petroleum production, revenues and social infrastructure development in host communities.

Head, Media and Strategic Communication at the NUPRC, Eniola Akinkuotu, who issued the statement counted 16 major improvements in the petroleum industry since NUPRC was created by the PIA to displace defunct Department of Petroleum Resources and subsequently improved the regulations that govern industry operations.

In describing the improvement in regulatory governance of the industry as myriad high impact achievements, Mr Akinkuotu noted that the progress in the last four years was made in spite of the legacy challenges the NUPRC inherited from the pre-Petroleum Industry Act era.

In the three years including 2022, 2023 and 2024, he said, the Commission surpassed its revenue target for the federation by 18.3%, 14.65% and 84.2% respectively despite fluctuations in oil production and market prices.

He said the commission has between 2024 and 2025 approved 79 Field Development Plans (FDPs) with potential investment of $39.98 billion. He the FDPs approved in 2024 carried investment purse of $20.55 billion in 2024 and new FDPs approved so far in 2025 come with investment profile of $19.43 billion.

Since the inception of Commission crude oil production has increased with current average daily production of 1.65 million barrels of oil per day (Mbopd) expected to further grow with the Project 1 Mbopd initiative to 2.5 Mbopd in 2027.

He added that exploration bid round which is the entry door to new players has been digitized to guarantee transparency, minimize interference and earn process credibility.

“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),” Akinkuotu stated.

He however added that whereas the licensing process remains smooth and transparent, the commission has also activated the drill-or-drop condition to prevent players from keeping unexplored 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.

The commission, according to him, successfully spurred oilfield work programmes, leading to significant 762.5% increase in rig count in four years. “The rig count rose geometrically from eight in 2021 to 69 as of October 2, 2025,” representing renewed investor confidence in Nigeria, he said.

“As part of its mandate to develop the country’s hydrocarbon, the Commission has recorded 306 development wells drilled and completed between 2022 to date.

“The NUPRC Issued Nigeria’s first Petroleum Exploration License (PEL) for a large offshore geophysical survey covering 56,000 km² of 3D seismic and gravity data. Furthermore, the Commission has reprocessed 17,000 line-kilometers of 2D seismic data and 28,000 square kilometers of 3D seismic data, producing sharper, higher-resolution images of our petroleum systems and reducing the uncertainties that once hindered exploration decisions. Other data acquisition includes: 11,300 Sq.km of newly acquired 3D data, processed to PSDM and 80,000 Sq.km of Multibeam Echo Sounding & Seafloor Geochemical Coring data,” according to the statement.

On divestments in the upstream petroleum industry, the NUPRC declared that it approved divestments running into billions of dollars in 2024; explaining that “the divestment is about investor portfolio re-ordering to focus on deep-offshore development.”

In providing clear direction for the industry, he said, the NUPRC has developed 24 forward-thinking Regulations with 19 already gazetted and five waiting for gazette.

“These forward-thinking Regulations serve as tools for transparency and creation of enabling investment climate and benchmark best practices,” the commission declared.

In providing progress made in the Nigerian Gas Flare Commercialization Programme (NGFCP), the commission stated completed awards of flare sites to successful bidders with the aim to eliminate gas flaring and attracting at least $2.5 billion in investments.

Other achievements in the period, according to the statement, include earning the 2024 Overall Best Performing Parastatal SERVICOM Unit (PSU) Award, “along with the 2024 Best Performing PSU, Team B Award.”

“The NUPRC has again won best Regulator 2025 by Association of Energy Correspondents of Nigerian (NAEC), aside over 60 awards from various organizations,” the commission declared.

The NUPRC reported that the Host Community Development Trusts have remitted N122.34 billion and over $168.91 million as of October 2025. “This translates to a combined remittance of over N358.67bn based on the prevalent exchange rate in enthroning a conducive host community environment in Nigeria” it explained.

Consequently, the commission declared, “the NUPRC is overseeing at least 536 projects at various stages of completion including schools, health centers, roads and vocational centers. These are being funded by the trust fund. The achievement has tremendously curbed crude oil theft.”

On curbing crude oil theft, the commission stated that crude oil losses in the industry have dropped by 90 percent from 102,900 barrels per day or 37.6 million barrels per year in 2021, to 9,600bpd in September 2025.

It added that “two pioneer regulations introduced by the Commission have also contributed to the success, namely: The Upstream Measurement Regulation and the Advanced Cargo Declaration Regulation respectively, have contributed as pioneer efforts at achieving transparency in hydrocarbon accounting.”

On the regional scene, “the Engr Gbenga Komolafe-led NUPRC has continued to show leadership as it championed the establishment of the African Petroleum Regulators Forum (AFRIPERF).

“The last event of the AFRIPERF at the Africa Oil Week (AOW) was attended by Sixteen African Countries namely: Nigeria, Ghana, Somalia, Gambia Madagascar, Sudan, Guinea, Togo, Angola, South Africa, Mozambique, Benin Republic, Kenya, Namibia, Morocco and Mauritania.

“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 in the statement.

Oracle Intelligence reports that the NUPRC has also scaled up the level of regulatory reporting in the industry, and for the first time, provided key figures that indicate the direction of activities in the industry.

Unlike in the past when the industry was one of the most opaque in the world; investors, players and service providers can now take positions along the activity lane to take emerging opportunities.