Nigeria’s oil and gas sector is witnessing a surge in investor confidence, driven by recent upstream reforms that have unlocked $18.2 billion in Field Development Plans for 2025, while crude oil losses have fallen to their lowest level in more than a decade.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, revealed these developments on Tuesday at the Africa Oil Week in Accra, Ghana.
In a presentation titled “Nigeria’s Competitive Reform Agenda for Unlocking Potentials in Upstream Oil & Gas,” Komolafe highlighted that the reforms are anchored in President Bola Tinubu’s Renewed Hope Agenda and the Petroleum Industry Act of 2021, providing strong governance, fiscal clarity, and institutional alignment for the sector.
He disclosed that the commission approved 28 new FDPs in 2025 alone, projected to unlock 1.4 billion barrels of oil and 5.4 trillion cubic feet of gas. These projects are expected to add 591,000 barrels of oil per day and 2.1 billion standard cubic feet of gas per day, bringing Nigeria closer to its goal of producing over three million barrels of crude oil daily.
“These FDPs, with $18.2bn in capital expenditure commitments, underscore Nigeria’s transformation into one of the most dynamic and attractive upstream investment frontiers in the world,” Komolafe said.
Komolafe highlighted the commission’s milestones since its establishment under the Petroleum Industry Act, including the rollout of 24 transformative regulations—19 of which have already been gazetted. He noted that a comprehensive Regulatory Action Plan has removed entry barriers, streamlined licensing, and enhanced transparency in a sector long hindered by uncertainty.
He pointed to landmark investment decisions as a clear sign of growing investor confidence. These include the $5 billion Final Investment Decision (FID) for the Bonga North deepwater development, the $500 million Ubeta Gas Project, and anticipated FIDs for the HI NAG Development, Ima Gas, Owowo Deep Offshore, and Preowei Fields.
Komolafe noted that licensing rounds have seen strong participation, driven by the recent reforms. The 57 Petroleum Prospecting Licence awards in 2022, the 2022 Mini-Bid Round, and the 2024 Licensing Round all attracted significant interest, with 27 of the 31 blocks offered in 2024 successfully awarded. Revisions to signature bonus requirements and other measures were implemented to make participation more accessible and competitive.
He also highlighted a sharp increase in rig activity, which has risen from just eight rigs in 2021 to 43 as of September 2025, underscoring renewed investor engagement in Nigeria’s upstream sector.
Nigeria has also made significant progress in curbing crude oil losses, a long-standing challenge for Africa’s top oil producer. NUPRC data show that between January and July 2025, losses fell by 50.2 per cent to 2.04 million barrels, averaging 9,600 barrels per day—the lowest level since 2009, when daily losses stood at 8,500 barrels.
This marks a substantial improvement from the 4.1 million barrels lost in 2024 and a sharp decline from the record 37.6 million barrels lost in 2021, when theft and sabotage cost the nation an average of 102,900 barrels per day.
Komolafe attributed the decline in oil losses to stricter regulations, improved surveillance, and collaborative security frameworks implemented under the current administration.
He noted that the combination of reforms, greater transparency, and stronger governance has repositioned Nigeria’s upstream sector as a competitive destination for global investors.
“These achievements affirm that Nigeria is entering a new era of clarity, competitiveness, and confidence,” he said.
