Major Reduction in Crude Oil Theft
The Federal Government, through the Nigerian Upstream Regulatory Commission (NUPRC), has made significant progress in reducing crude oil theft. This reduction is evident from the drop in stolen crude oil from over 102,000 barrels per day in 2021 to just 9,600 barrels per day as of September 2025. The NUPRC Chief Executive, Gbenga Komolafe, highlighted that this achievement was possible due to collaboration with security agencies, private contractors, and community stakeholders. The implementation of the Upstream Measurement Regulation and the Advance Cargo Declaration Regulation played a crucial role in achieving this result.
Komolafe emphasized that the reduction in theft amounted to over 90% in four years. He made these remarks during the 2025 Association of Energy Correspondents of Nigeria (NAEC) conference in Lagos. Prior to his statement, the Nigerian Extractive Industries Transparency Initiative (NEITI) had released an industry report on crude oil theft, revealing that the Federal Government lost a total of 13.5 million barrels of crude oil worth $3.3 billion to theft and pipeline sabotage between 2023 and 2024.
Komolafe criticized the lack of transparency and accountability in the oil and gas industry, stressing the need for openness, transparency, and innovation to drive the sector’s value chain. He spoke on the theme, “Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth.”
Impact of Lost Revenue
According to Komolafe, the lost revenue could have supported a full year of the federal health budget or provided energy access to millions of households. He also noted that the 2021-2022 Oil and Gas Industry Reports indicated that Nigeria earned $23.04 billion in 2021 and $23.05 billion in 2022 from the sector. Additionally, it was reported that N1.5 trillion were owed to the Federation by some companies and government agencies, funds that could have been used for energy infrastructure and healthcare.
Transparency and accountability are essential for a more sustainable energy future for Nigeria, according to Komolafe. The NEITI is committed to ensuring that every barrel of crude produced is accounted for, highlighting that secrecy in the value chain remains a concern.
Importance of Reliable Data
Reliable data is crucial in the industry, as it builds trust, which drives investment, generates revenues, and delivers impact. Over the past decade, NEITI has evolved from an auditing agency to a governance reform institution. It has institutionalized regular audits of oil, gas, and solid mineral sectors, tracking production, payments, and remediation. NEITI has also developed Nigeria’s Beneficial Ownership Register, unmasking the true owners of over 4,800 extractive assets and helping the government combat corruption and illicit financial flows.
The organization launched the NEITI Data Centre, a national open-data infrastructure providing real-time public access to industry information. It has strengthened partnerships with NUPRC, NMDPRA, and NCDMB to promote transparency in licensing, metering, and host community trust management. NEITI introduced the Just Energy Transition and Climate Accountability Framework to ensure that Nigeria’s shift to cleaner energy is transparent, inclusive, and fair.
Strategic Reforms and Production Targets
The NUPRC CCE, represented by the Director, Lagos Office, Mr. Paul Osu, stated that the commission prioritized production optimization and recovery enhancement. By reviewing field development plans, supporting brownfield optimization, and enabling the re-entry of shut-in wells, NUPRC facilitated renewed activity across mature assets. These interventions are projected to deliver incremental volumes exceeding one million barrels of oil per day, a key milestone toward achieving the national production target of 2.5 million BOPD by 2027.
The Federal Government reduced the cost of the signature bonus from about $100 million to $10 million in its drive to achieve the 2.5 million barrels per day target in 2027. This strategic decision aims to drive investment and encourage the development of more oil blocks. According to Komolafe, this policy shift enhanced investor confidence, enabled early field development, and reaffirmed Nigeria’s standing as a transparent investment destination.
Host Communities Development Trust
Komolafe further revealed that the implementation of the Host Communities Development Trust (HCDT) provisions as stipulated in the Petroleum Industry Act (PIA 2021) has been transformative. The Commission successfully inaugurated over 90 Trusts across the Niger Delta, ensuring that development funds flow directly to communities. This model secures local ownership, guarantees peace, stability, and continuity in production, key pillars for sustained energy security.
Gas Agenda and Energy Transition
The NUPRC is advancing Nigeria’s gas agenda as part of the ‘Decade of Gas’ and the nation’s energy transition pathway. Natural gas remains the most reliable transition fuel, a catalyst for industrialization, power generation, and clean energy substitution. By promoting gas monetization, flare elimination, and gas-based investments, the Commission reinforces Nigeria’s commitment to a just and balanced energy transition.
Power and Energy Reforms
The conference chairman and President, Masters Energy Group, Dr. Uche Ogah, stated that the power and energy reforms recently implemented by the federal government must deliver tangible results. He pointed at the PIA 2021, the fuel subsidy removal of 2023, and the Electricity Act which redefines how power is generated, transmitted, and consumed with states now involved in the value chain.
Despite these efforts, Ogah noted that the power reforms have not translated into tangible improvements in supply, with actual generation hovering around 5,000 megawatts. He identified three major energy challenges: ensuring that the energy and power reforms deliver results, maximizing the value of hydrocarbon endowment before it declines, and delivering universal, accessible, and affordable energy to every Nigerian household.
NDPHC and Legacy Debt Defrayment
The Managing Director of the Niger Delta Power Holding Company (NDPHC), Engr. Jennifer Adighije, commended President Bola Ahmed Tinubu for his administration’s commitment to revamping Nigeria’s power sector, following his recent approval of the defrayment of the ?4 trillion legacy debts owed to generation companies (GenCos). Adighije described the President’s approval as a landmark decision that would restore the financial health of the sector.
With the funds available, NDPHC plans to deploy a significant portion of these recovered funds toward converting power plants from open-cycle to combined-cycle operations. This will enhance efficiency and diversify the generation mix, aligning with Nigeria’s Energy Transition Plan. Adighije noted that the power sector is undergoing a major transition, moving towards bilateral trading and implementing a cost-reflective tariff regime.
