Nigeria is setting its sights on producing 2.5 million barrels of crude oil per day by 2026 as part of a bold reform plan to reposition its oil and gas industry for growth, transparency, and long-term sustainability, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, announced on Thursday.
Komolafe, who unveiled the new upstream roadmap at the 2025 Energy Correspondents Association of Nigeria Conference in Abuja, said the production target will be achieved through the commission’s Project One Million Barrels Initiative, launched in 2024, which focuses on reactivating dormant oil wells, expediting regulatory approvals, and boosting operational efficiency.
He said Nigeria’s current unreconciled daily production hovers between 1.7 million and 1.83 million barrels per day, noting that ongoing reforms and regulatory interventions are already restoring investor confidence and driving gradual output recovery.
“Through our Project One Million Barrels Initiative, launched in 2024, Nigeria is actively ramping up crude oil production by reactivating dormant fields, fast-tracking regulatory approvals, and enhancing operational efficiencies across the upstream value chain.
“With a clear target of increasing production to 2.5 million bpd by 2026, the initiative has already demonstrated strong momentum with current unreconciled daily production averaging 1.7 – 1.83 million bpd,” Komolafe said.
Recall that on Tuesday, the regulatory commission announced plans to commence the 2025 Licensing Round, effective December 1, 2025, aimed at unlocking Nigeria’s undeveloped and fallow oil and gas fields, with a particular focus on gas assets.
He stated that there are new frontier opportunities in onshore, shallow water and deep offshore blocks, especially in underexplored basins, enabled by its new licensing rounds regime.
“There are also other vast and compelling transformative opportunities, particularly in natural gas development, gas-to-power initiatives, Liquefied Natural Gas projects, FLNGs and Compressed Natural Gas transportation infrastructure, aimed at enhancing both export capacity and domestic energy supply,” he said.
The NUPRC chief noted that the Petroleum Industry Act 2021 remains a watershed reform that has redefined the governance and fiscal architecture of the oil and gas sector, setting new benchmarks for accountability, transparency, and competitiveness.
According to him, the commission has issued 19 key regulations to operationalise the Act, strengthen investor confidence, and create a stable environment for exploration and production growth.
“We have introduced a new royalty regime and tax incentives, including zero hydrocarbon tax for qualified projects.
“These reforms are designed to attract fresh capital and ensure the financial viability of upstream projects, especially in frontier basins,” Komolafe explained.
He further disclosed that approvals for 37 new evacuation routes and enhanced collaboration with security agencies have led to a marked decline in oil theft and pipeline vandalism, long-standing challenges that have constrained Nigeria’s revenue and export capacity.
“The enforcement of the Domestic Crude Supply Obligation is also ensuring consistent feedstock for local refineries, strengthening domestic supply chains and promoting energy security,” he said.
(Punch)
