The Federal Government has slashed the cost of signature bonuses in Nigeria’s oil sector from $100 million to $10 million in a major policy shift aimed at boosting production. The Nigerian Upstream Regulatory Commission, NUPRC, says the move is part of efforts to achieve an oil production target of 2.5 million barrels per day by 2027.
Speaking at the Nigeria Association of Energy Correspondents Conference in Lagos, NUPRC Chief Executive Gbenga Komolafe revealed that the reduction, approved during the 2024 mini-bid round, has increased investor confidence and allowed more capital to be directed toward field development. The Commission is also pushing for production optimisation by supporting the re-entry of shut-in wells and reviewing existing field development plans.
Komolafe stated that these interventions are expected to add over one million barrels of oil per day to current output. He also noted progress in tackling oil theft, citing a 90% drop in daily losses—from over 102,000 barrels in 2021 to 9,600 barrels as of September 2025—thanks to tighter regulation and stronger collaboration with security agencies and communities.
The Commission is also advancing Nigeria’s gas agenda under the “Decade of Gas” initiative, positioning natural gas as a key driver of industrialisation and energy transition. With global upstream investment projected to hit $580 billion by 2025, NUPRC says Nigeria is aligning its regulatory approach to attract investment while maintaining transparency, efficiency, and local participation in the energy sector.
