NUPRC: Nigeria Secures Over $16 Billion in Upstream Oil Investment Commitments

Nigeria’s upstream petroleum sector has attracted more than $16 billion in investment pledges over the past two years, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

This investment surge follows comprehensive regulatory reforms and policy initiatives aimed at repositioning the sector for enhanced energy security and economic growth.

At the 24th Nigerian Oil & Gas Energy Week in Abuja, NUPRC Chief Executive Gbenga Komolafe highlighted Nigeria’s transformation into a more attractive investment destination through policy reforms and operational improvements.

The 2021 Petroleum Industry Act established the foundational regulatory framework, while three Executive Orders issued in 2024—covering fiscal incentives (Order 40), local content (Order 41), and contracting efficiency (Order 42)—have accelerated investment interest.

“These reforms have moved us from promise to performance,” Komolafe said. “Over $16 billion has been committed in just two years—a clear testament that Nigeria is now investment-ready.”

Investment areas include deepwater exploration projects, asset rehabilitation programs, gas infrastructure development, and crude evacuation systems. Both international oil companies and independent operators have renewed their commitment following years of reduced investment.

Nigeria’s “Project One Million Barrels” program, launched in 2024, targets increasing daily crude production from 1.46 million barrels per day to 2.5 million barrels per day by 2026. Current output has reached 1.7 million barrels daily through accelerated asset recovery and streamlined approval processes.

“We are not only talking growth; we are delivering it,” he said.

Supporting measures include expanded drilling operations, simplified licensing procedures, and investments in evacuation infrastructure. Authorities have approved 37 new crude evacuation routes and are implementing an Advanced Cargo Declaration System to address theft concerns and improve export monitoring.

The NUPRC is enforcing Domestic Crude Supply Obligation requirements to ensure consistent feedstock supply to local refineries, including the 650,000-barrel-per-day Dangote Refinery.

The HostComply platform enhances transparency and ensures benefits reach oil-producing communities, while digital transformation initiatives are reducing regulatory processing times and administrative barriers.

Nigeria is also pursuing a gas-focused energy transition through the “Decade of Gas” initiative, developing LNG infrastructure, floating LNG units, and cross-border pipeline projects.

The Nigerian Gas Flare Commercialisation Programme and the Presidential CNG Initiative aim to eliminate routine flaring by 2030 and reduce methane emissions by 60% by 2031, creating employment opportunities and establishing Nigeria as a regional gas hub.

The NUPRC has introduced emissions monitoring and reporting systems alongside carbon market mechanisms that enable producers to monetise emission reductions. March 18 has been designated as Nigeria’s Upstream Decarbonisation Day, with annual forums to track progress.

Through the AFRIPERF platform, Nigeria is leading African energy market integration efforts, focusing on regulatory harmonisation, infrastructure connectivity, and cross-border financing in partnership with the Africa Energy Bank.

“We are not just building a stronger Nigerian upstream; we are building a stronger African energy future,” Komolafe said.

Plans include accelerated frontier basin exploration, expanded competitive licensing rounds, and stricter enforcement of flare reduction and emissions compliance requirements.

Operators failing to meet program obligations have faced regulatory sanctions.

“We will not allow unwilling producers to hold Nigeria back,” Komolafe stated firmly.

The NUPRC chief referenced President Bola Tinubu’s message to global investors:

“Nigeria must not only be open for business—it must be irresistible.”

“The foundation has been laid,” Komolafe concluded. “Let us turn our vast energy potential into enduring performance.”