Nigeria’s oil production has experienced a notable resurgence, averaging 1.75 million barrels per day (BPD) as of January 2025, accompanied by a gas production rate of 7 billion standard cubic feet per day (SCFD). This improvement is largely attributed to the substantial decrease in oil theft, which has plummeted to 5,000 BPD, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In 2022, Nigeria faced a severe decline in oil output, dropping to 1.1 million BPD due to rampant pipeline vandalism and oil theft. The NUPRC, under the leadership of Commission Chief Executive Engr. Gbenga Komolafe, implemented a combination of kinetic and non-kinetic strategies to combat these challenges. These efforts have been instrumental in reducing oil theft and facilitating a steady increase in production.
Engr. Komolafe highlighted the government’s ambitious Project 1 MMBOPD initiative, aiming to boost production by an additional 1 million BPD by December 2026. This project emphasizes collaboration among operators, service providers, financiers, and host communities to achieve its objectives.
The NUPRC has also sought enhanced collaboration with the Nigerian Police to further curb illicit activities affecting the nation’s oil and gas industry. This partnership aims to strengthen efforts against oil theft and ensure the security of petroleum infrastructure.
Despite these advancements, challenges persist. In August 2024, Nigeria’s oil production ranged between 1.6 million and 1.7 million BPD, still below the government’s budget estimate of 2.06 million BPD. To address this, the government has intensified operations, such as Operation Delta Sanity (OPDS), deploying armed drones, attack helicopters, and increased intelligence to combat oil theft in the Niger Delta region.
In addition to security measures, Nigeria is focusing on attracting investments to bolster its oil production capacity. In September 2024, Exxon Mobil Corp announced plans to invest $10 billion in offshore oil operations in Nigeria, aiming to increase output by 50,000 BPD. This investment aligns with President Bola Tinubu’s vision of making Nigeria more attractive to investors and enhancing the country’s oil production capabilities.
Furthermore, Nigeria is leveraging its vast gas reserves to boost its economy. In October 2024, the country signed an agreement to supply gas to a proposed $3.5 billion Brass fertilizer and petrochemical plant. This initiative is expected to generate at least $1.5 billion annually from petrochemical exports and other gas-based products, contributing significantly to Nigeria’s economic growth.
Overall, Nigeria’s concerted efforts in reducing oil theft, enhancing security, attracting investments, and utilizing its gas resources are paving the way for a more robust and resilient oil and gas sector.
