Nigeria is on course to boost crude oil production to 2.5 million barrels per day (mbpd) by 2026, according to the Federal Government.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the target, citing efforts to unlock deepwater resources, revive dormant fields, and fast-track approvals for new oil and gas projects.
Speaking at the 2025 PENGASSAN Energy and Labour Summit in Abuja, NUPRC Chief Executive Gbenga Komolafe said reforms under the Petroleum Industry Act (PIA) 2021 and recent presidential directives had cut average contracting cycles from 36 months to just six months, while offering competitive fiscal terms to investors.
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He explained that the commission, in collaboration with operators and service providers, is driving a “Project One Million Barrels per Day” initiative aimed at raising output through a cluster and nodal development model.
This strategy, which leverages shared infrastructure and floating production storage and offloading (FPSO) tiebacks such as Bonga, Egina, and Agbami, is expected to reduce costs, shorten project timelines, and de-risk investments.
According to Komolafe, production has already risen from 1.46 mbpd in October 2024 to about 1.8 mbpd in August 2025, with deepwater developments alone holding the potential to add over 810,000 barrels per day at peak.
He noted that “with this momentum, we are firmly on track to reach our 2.5 million barrels per day target by 2026.”
On the global energy transition, the NUPRC boss acknowledged rising investment in renewables — which reached $2.1 trillion in 2024, surpassing fossil fuels for the first time — but emphasized that oil and gas would remain vital to meeting demand in Africa and Asia.
He added that Nigeria would pursue a “gas-centric decarbonisation pathway” to balance economic growth with climate commitments.
Meanwhile, Komolafe confirmed that the commission has concluded a case-by-case review of marginal fields licensing due for renewal.
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He said the evaluation, conducted under the PIA framework, used a technical scorecard system to assess operators’ compliance with milestone obligations.
The results have been submitted to the Minister of State for Petroleum (Oil) for approval, after which qualified companies will have their licenses renewed.
Sources: https://punchng.com/nigeria-on-track-to-hit-2-5mbpd-oil-output-fg/
Image Credit: Business News Nigeria
