The Commission Chief Executive (CCE), of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has stated that through the Nigeria Gas Flare Commercialization Programme (NGFCP), of the Federal Government, approximately $2.5 billion in investment would potentially be unlocked, generating huge revenue, and creating significant number of jobs in the country.
NGFCP is a government program launched in 2016 with the aim to reduce gas flaring and sell flared gas to third parties through competitive bidding process.
Engr. Komolafe spoke on Wednesday in his opening address during a Panel Session, with a theme: “Transformative Deals and Nigeria’s Upstream Future”, at the ongoing 2025 Nigeria International Energy Summit (NIES) in Abuja.
He also stated that the Commission’s commitment to shared prosperity was demonstrated in its effective implementation of the Host Community Development Trusts (HCDTs) provisions of the PIA 2021.
Noting that with 154 HCDTs registered and over N78.8 billion and $122 million contributed to the fund, the NUPRC was steering tangible change, resulting in 198 ongoing projects in host communities and enhanced peace and economic growth in resource- rich regions.
Speaking on some milestone achievements in the Upstream sector, the NUPRC boss said, “in the short-term, we have set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security.
“Our achievements speak for themselves: between 2023 and 2024, oil reserves increased by 1.43%, reaching 37.5 billion barrels, while gas reserves grew by 0.21%, reaching 209.26 trillion cubic feet.
“Rig count increased from 8 in 2021 to 40 in 2025 and is projected to reach 50 before year end while production increased by 70% from 1 million bopd in 2021 to the current production of circa 1.75 million bopd.
“These accomplishments are not just numbers but are parameters for measuring vibrancy in the industry driven by effective regulatory policies,” he said.
Engr. Komolafe maintained that in pursuit of the administration’s goal to reach 40 billion barrels of oil and 220 trillion cubic feet of gas, the Commission has vigorously pursued strategies to stimulate exploration activities and accelerate development.
As part of these efforts, he said, the Commission successfully completed the 2022/2024 bid licensing round, and awarded twenty-seven (27) Petroleum Prospecting Licenses (PPLs) across various terrains. Adding that efforts are also on for the 2025 bid round, embracing a new paradigm of annual licensing rounds.
He highlighted that the Commission has deliberately been acquiring high-quality geological and geophysical data through multi-client service arrangements in that regard.
The CCE stated that Nigeria’s vast oil reserves present a remarkable opportunity for growth and economic transformation, explaining that while the nation’s current production averages circa 1.75 million barrels per day, its technical potential is 2.24 million barrels per day.
He disclosed that the Commission was working assiduously to bridge the gap between the actual production and the potential through actions aimed at improving transparency, driving collaboration with E&P companies, ensuring financial viability, fast-tracking field developments, adopting cutting-edge improved oil recovery technologies, reducing costs, eliminating entry barriers and optimizing production.
He affirmed that the potential for increased production is immense, and NUPRC is committed to unlocking every opportunity.
“Our efforts to reactivate shut-in wells and leverage low hanging fruits opportunities will bring us closer to actualisation of the Project 1Mbopd additional production target recently launched by the Commission,” he said.
Engr. Komolafe also disclosed that the Commission is steadily progressing actions on Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment and Facilities as part of our non-kinetic approach to combat crude theft, eliminate revenue leakage and maximize value.
“At NUPRC, transparency is the cornerstone of our regulatory approach. We have introduced innovative regulations to improve hydrocarbon measurement, combat crude oil theft, and enhance hydrocarbon accounting,” he noted.
The Regulator said through the Commission’s Upstream Divestment and Exit Guidance Framework, it has ensured smooth asset transitions, attracting new capital and expertise. Noting that in collaboration with industry stakeholders, the Commission developed 24 forward-thinking regulations to bolster energy security, address transition risks, and foster a resilient, competitive upstream sector.
“In 2024, we rolled out a Regulatory Action Plan (RAP) 2024-2026, comprising 24 cardinal pillars designed to boost operational efficiency, enhance transparency, and position Nigeria’s upstream sector for global competitiveness and sustainable growth. Driving Energy Transition and Sustainability.
“Through strategic policy interventions, we have fostered an environment that enables transformative deals, unlocking value for both investors and the nation. One of our key achievements has been the establishment of a clear and robust divestment framework.
“This framework has provided a structured pathway for asset transitions, ensuring regulatory certainty, protecting industry interests, and sustaining production.
“The framework was critical in facilitating high-profile transactions, such as the divestment of NAOC’s onshore and shallow water assets to Oando, Equinor’s exit through Project Odinmim, as well as the Shell Petroleum Development Company (SPDC) divestment to Renaissance and ExxonMobil’s (MPN) asset transfer to Seplat Energy, ensuring a seamless transition while maintaining production stability, and allowing new players to bring fresh capital and expertise into the industry,” the CCE said.
He reaffirmed the Commission’s commitment to fostering a resilient, competitive, and investment-driven upstream sector.
