Samson Echenim 
Nigeria may be set for a season of rebound in crude oil production as the number of active oil rigs in the country has surged to 44 as of July 2, 2025, up from 32 in May, reflecting renewed momentum in the upstream sector.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe disclosed this during a strategic panel session at the NOG Energy Week in Abuja.
He also revealed that a total of N326.51 billion, representing the statutory 3% of oil and gas operators’ operational expenditures, had been disbursed to 145 Host Community Development Trusts, HCDTs, incorporated by the Corporate Affairs Commission, CAC.
These funds were sourced from 94 settlors, with the U.S. dollar component converted at ₦1,529.63/$ as of July 1, 2025.
The panel, themed “Pragmatically Achieving Energy Abundance,” served as a platform for Komolafe to highlight significant milestones shaping Nigeria’s oil and gas landscape, particularly under the Petroleum Industry Act (PIA) and the reform-minded administration of President Bola Tinubu.
According to Komolafe, the approval of 28 Field Development Plans, FDPs, in 2025, expected to add 1.4 billion barrels of oil to national reserves and yield an incremental daily production of 591 barrels. The developments cover 72 new wells and 19 Extended Well Tests, EWTs, set to attract billions of dollars in capital expenditure, an indicator of rising investor confidence in Nigeria’s reformed regulatory regime.
“These approvals and associated investments are not only strengthening Nigeria’s production outlook but also affirming the robustness of the PIA and our transparent licensing and monitoring frameworks,” Komolafe said.
Komolafe also shed light on the Project One Million Barrels Initiative, launched in 2024 to grow production from 1.46 million barrels per day (bpd) to 2.5 million bpd by 2026. With 1.7 million bpd already achieved, the initiative is showing tangible results through reactivation of dormant fields, expedited project approvals, and improved operational efficiency.
Addressing Nigeria’s gas agenda, Komolafe provided updates on the Nigerian Gas Flare Commercialisation Programme, NGFCP.
He disclosed that the initiative has attracted about $1.5 billion in expected capital expenditure following the successful award of 49 flare gas assets and completion of Milestone 1.
While commending compliant producers, he issued stern warnings to defaulting operators and non-performing awardees. “The Commission will not tolerate any producer that undermines this national climate action programme,” he said, adding that regulatory sanctions have already been initiated.
He noted that Nigeria’s upstream investment climate has been further catalysed by the 2024 Executive Orders 40 (fiscal incentives), 41 (local content), and 42 (cost efficiency)—which together have unlocked over $16 billion in investment within two years.
