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The future of Nigeria’s oil and gas industry will therefore depend not only on the size of our reserves

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that strategic initiatives, reactivation of dormant fields, accelerated approvals, and deployment of improved recovery techniques were instrumental to the increase in crude oil production from a baseline of 1.46 million barrels per day in October 2024 to the current baseline of 1.8 million barrels per day.

The Commission Chief Executive (CCE) of the NUPRC, Engr. Gbenga Komolafe, made this revelation on Thursday in Abuja while delivering his keynote address at the PENGASSAN Energy and Labour Summit (PEALS) 2025, themed “Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment, and Incremental Production.”

He said: “The cluster and nodal development strategy, designed to maximise shared infrastructure, capture economies of scale, and enable coordinated tiebacks to existing FPSOs like Bonga, Egina, and Agbami. This approach significantly reduces project costs, shortens timelines and de-risks investments.

“Coupled with reactivating dormant fields, accelerating approvals, and deploying improved recovery techniques, these efforts have already increased production from 1.46 million barrels per day baseline in October 2024 to 1.8 million barrels today. With this momentum, we are firmly on track to reach our 2.5 million barrels per day target by 2026.”

Komolafe noted that with proven reserves of 37.28 billion barrels of crude oil and 210.54 trillion cubic feet of natural gas, the nation’s upstream sector remains the backbone of the economy, delivering about 90% of export earnings and nearly 70% of government revenue.

While stating that fossil fuels would remain indispensable in meeting the energy demands of expanding populations and fast-growing economies, particularly in Asia and Africa, he, however, added that for Nigeria, the ambition must go beyond being resource-rich to being resource-responsible, harnessing hydrocarbons with world-class efficiency and environmental stewardship while strategically investing in cleaner alternatives.

He said: “The urgency of this task is magnified by rising global scrutiny, climate vulnerability, supply chain disruptions, and local challenges such as underinvestment and infrastructure gaps.

“Building a resilient oil and gas sector in Nigeria therefore demands nothing less than bold, transformational thinking and unified action across government, industry, labour, and communities: the very kind of partnership this summit was designed to inspire.”

The NUPRC boss, who stated that besides policy and capital, people were critical in creating value, urged Nigeria to maximise the huge potential of having a largely youthful population, with nearly 70% under the age of 30, to build an energy and talent pool that would be unmatched by most other oil-producing nations.

“In many oil-producing regions, ageing workforces are forcing companies to import talent to keep operations running. Nigeria’s opportunity is different: with a young and dynamic population, we have the chance to train, retain, and even export world-class energy professionals; positioning our nation not only as a leading oil producer but also as a human capital hub driving Africa’s energy transition.

“If we strategically invest in STEM education which integrates science, technology, engineering, and mathematics, technical training, and digital upskilling, our youth can fill the projected 20 million new energy jobs the IEA expects to emerge globally by 2030.”

The Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, said Nigeria must embrace best practices, which include Environmental, Social, and Governance (ESG) and Health, Safety, and Environment (HSE), to remain competitive in the global market, safeguard jobs, attract investment, and create new opportunities for workers in the energy transition space.

Represented by NMDPRA’s Executive Director of Corporate Services and Administration, Bashir Sadiq, he said the Authority was committed to working with unions at the depot to shift policies, strengthen capacity, and drive the industry.

“The future of this industry rests in the choices we make today. We must champion safety, we must reduce harmful emissions, we must demand transparency and fairness and above all, we must protect the dignity and security of every worker.

“Let us make our workplace safe, our government transparent, our industry openly respected, and our communities and workers empowered. An environmentally responsible and sustainable oil and gas industry is not just about regulations but about fairness, dignity of workers.”

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Ogbe, said the future of Nigeria’s oil and gas industry hinges greatly on the skills and competencies of Nigerians.

Represented by the General Manager of Human Capacity Development at NCDMB, Barr. Esueme Kikile, he maintained that developing the capacity of people was crucial, as it was the true oil that lubricates the wheels of the oil and gas industry.

“Assets and infrastructure are vital, but it is human that unlocks their value. The future of Nigeria’s oil and gas industry will therefore depend not only on the size of our reserves, but on the skills and competencies of our people.

“We must therefore prioritize, one, system education and vocational training at all levels; strengthen collaboration between government, labor, and industry to align capacity building with emerging opportunities. If we invest in our people, we can adapt to change and ensure that Nigeria’s oil and gas industry thrives for generations to come.”