2026 Crude Oil Production: FG Lays Plans Towards Achieving 2.5 Million BPD

2026 Crude Oil Production: FG Lays Plans Towards Achieving 2.5 Million BPD

NUPRC’s Head of Regulatory and Statutory Compliance, Mr Kingston Chikwendu who represented the Chief Executive Officer, NUPRC, Gbenga Komolafe

…As NUPRC Assures Transparency, Accountability In Sector

The Federal Government has laid out plans towards achieving  the target of increasing crude oil production to 2.5 million bpd by 2026, according to data provided by the  Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Already, through the NUPRC’s Project One Million Barrels Initiative, launched in 2024, Nigeria is currently hitting crude oil production averaging 1.7 – 1.83 million bpd.

The Chief Executive of NUPRC, Gbenga Komolafe, who provided measures already implemented and the strategies in focus towards actualizing this target, spoke while delivering a keynote address at the 2025 annual conference of the Energy Correspondents Association of Nigeria (ECAN) held Thursday in Abuja. The theme of the conference was “Four years of the PIA: Achievements, Gaps and the Road ahead.”

Noting that the protection and optimization of national hydrocarbon assets is crucial, he revealed that “The approval of 37 new evacuation routes, coupled with intensified collaboration with national security agencies, has significantly curtailed crude theft and enhanced accountability across the industry. At the same time, the enforcement of the Domestic Crude Supply Obligation (DCSO) is securing consistent feedstock to local refineries, strengthening Nigeria’s internal supply chains and building long-term economic resilience.”

The NUPRC Chief Executive who was represented by the NUPRC’s
Head of Regulatory and Statutory Compliance, Mr Kingston Chikwendu, cited that its Host Community Development Trust (HCDT) framework, fully operational via HostComply digital platform, has created unprecedented transparency and direct community impact, fostering trust, reducing conflict, and reinforcing social licence to operate.

“Our broader digital transformation agenda is also reshaping regulatory engagement by streamlining approvals, improving investor clarity, and delivering faster and smarter oversight”, he stated.

On gas, he said: “While hydrocarbons continue to generate nearly 90% of Nigeria’s foreign exchange earnings and 70% of government revenue, we are fully aware that the long-term viability of our energy sector depends on aligning growth with climate responsibility. Our gas-centric energy transition strategy is a cornerstone of this effort, anchored by flagship initiatives such as the Decade of Gas, the Nigerian Gas Flare Commercialisation Programme (NGFCP), and the Presidential CNG Initiative. These programmes collectively aim to eliminate routine gas flaring by 2030 and reduce methane emissions by 60% by 2031.

“In parallel, we are working collaboratively with industry stakeholders to fully monetize Nigeria’s abundant gas resources through strategic LNG expansion, deployment of floating production solutions, and the development of cross-border pipelines designed not only to power Nigeria’s economy but to accelerate Africa’s broader industrialisation. Beyond infrastructure, the NUPRC is also championing the creation of a transparent, competitive, and investor-friendly gas market, unlocking the commercial potential of an estimated 600+ trillion cubic feet of gas resources (upward potential) and positioning Nigeria as a central hub in the global energy transition.”

He said apart from the Petroleum Industry Act, with the President’s Executive Orders and other policy directives,Nigeria has  embraced a transformative agenda aligned with global standards and commitments.

He noted that President Bola Tinubu’s administration has strengthened the objectives of the Petroleum Industry Act (PIA) through bold and decisive policy actions aimed at enhancing the competitiveness and efficiency of the country’s oil and gas sector.

According to him, “A key initiative in this effort is the Executive Order on Improving the Business Climate, which has streamlined bureaucratic processes and expedited approvals for licenses and permits, significantly boosting investor confidence.

“Furthermore, the Presidential Executive Orders issued in March 2024 introduced additional incentives for oil and gas development, reduced contracting costs and timelines, and addressed bottlenecks in local content implementation. These measures have enhanced the efficiency and attractiveness of Nigeria’s oil and gas industry while ensuring higher returns on investment in the energy sector.”