The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed the country attracted $16 billion in committed investments to its oil sector between 2023 and 2025, marking a significant turnaround for Africa’s largest hydrocarbon economy.
Gbenga Komolafe, Chief Executive of the NUPRC, made the disclosure during his keynote at the Nigeria-China Sustainable Business Summit in Lagos, where he outlined how sweeping reforms under the current administration have repositioned Nigeria as a competitive destination for energy investment.
“These aren’t theoretical policy changes but concrete operational shifts,” Komolafe emphasised, noting the government has slashed bureaucratic delays in oil contracts from 36 months to just six months. This acceleration, coupled with strategic tax incentives for deepwater and gas projects, has reinvigorated investor confidence, drawing renewed interest from international players including Shell, TotalEnergies and Seplat alongside ambitious local operators.
The NUPRC boss presented compelling data underscoring the sector’s revival: active drilling rigs have surged from a mere 8 in 2021 to 42 currently, with projections to hit 50 by year-end. Production stands at 1.75 million barrels daily, though Nigeria aims to ramp this up to 3 million barrels alongside boosting gas output from 7 billion to 12 billion cubic feet per day.
Komolafe framed these developments against global energy realities, citing BP’s 2024 Outlook which projects hydrocarbons will still meet over half of worldwide energy needs by 2050. For Africa specifically, energy demand is forecast to jump 30% by 2040 – requiring $600 billion annual upstream investment this decade according to International Energy Forum estimates.
“Nigeria cannot afford to neglect its hydrocarbon assets,” Komolafe asserted. “Rather, we’re optimising them responsibly to power development while transitioning strategically.” He highlighted the country’s vast reserves – 210 trillion cubic feet of gas (Africa’s largest) and 37 billion barrels of oil – alongside new frontiers in underexplored basins as prime investment opportunities.
The commission has implemented 19 regulations under the Petroleum Industry Act, introducing digital systems for licence processing and real-time monitoring to enhance transparency. A revamped licensing round process and automated approvals aim to maintain momentum in attracting credible investors through competitive, predictable mechanisms.
“From zero hydrocarbon tax to reduced royalties and consolidated fiscal terms, we’ve created one of the world’s most attractive investment climates,” Komolafe told delegates, noting these incentives have particularly benefited gas development as Nigeria positions it as a transition fuel.
With major projects already underway and new players entering the market, Nigeria’s oil sector appears poised for its most dynamic phase in decades – provided these reforms sustain their current trajectory. The $16 billion investment pledges, if fully realised, could mark just the beginning of this renaissance.
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