The Federal Government has reduced the oil sector’s signature bonus from about $100 million to $10 million to drive crude oil production to 2.5 million barrels per day (bpd) by 2027.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive Gbenga Komolafe announced this at the 2025 Nigeria Association of Energy Correspondents (NAEC) Conference in Lagos.
He said President Bola Tinubu approved the reduction during the 2024 mini-bid round to attract new investors and accelerate oil field development.
According to Komolafe, the decision has boosted investor confidence, encouraged early production, and reinforced Nigeria’s image as a competitive upstream destination.
He added that the Commission is focusing on production optimization and enhanced recovery. Through field development plan reviews, brownfield optimization, and re-entry of shut-in wells, the NUPRC has revived activity across mature assets.
Komolafe noted that these measures could add over one million barrels per day to Nigeria’s output, helping the nation meet its 2027 production target.
He also highlighted ongoing efforts to protect oil infrastructure and strengthen measurement systems. Working with security agencies, private firms, and host communities, the Commission has enforced the Upstream Measurement and Advance Cargo Declaration Regulations, cutting crude oil theft by 90 percent—from 102,000 barrels per day in 2021 to about 9,600 barrels in September 2025.
The NUPRC has also established over 90 Host Communities Development Trusts across the Niger Delta to channel funds directly to local communities. Komolafe said this model promotes ownership, peace, and stability, key factors for sustained energy production and security.
He described Nigeria’s upstream rebound as the result of deliberate regulatory reforms built on transparency, efficiency, and inclusiveness.
Komolafe added that the commission’s strategy supports the government’s broader economic vision and sustainability goals.
He further explained that the government is driving its gas agenda under the “Decade of Gas” initiative, positioning natural gas as a key transition fuel for industrialization, power generation, and clean energy.
By promoting gas monetization, flare reduction, and gas-based investments, the Commission aims to ensure a balanced and just energy transition. He noted that with global upstream investments projected to surpass $580 billion in 2025, hydrocarbons will remain vital to industrial growth in emerging economies like Nigeria.
Reaffirming the government’s commitment, Komolafe said Nigeria remains focused on sustaining its upstream recovery, meeting the 2.5 million bpd target by 2027, expanding gas monetization, safeguarding energy assets, and upholding transparency, accountability, and efficiency across the sector.
source:thestreetjournal.org
African Energy Council