The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the “Project 1 Million Barrels of Oil Per Day Initiative,” aimed at significantly increasing Nigeria’s daily oil production to a target of 2.4 million barrels per day. This bold initiative seeks to restore Nigeria’s place as a leading oil producer, a position that has been threatened by various challenges, including theft, sabotage, and underinvestment in recent years.
The initiative is a collaborative effort that brings together stakeholders from across the industry. These include oil producers, service providers, rig owners, financiers, and crude oil off-takers. The goal is to address the structural problems facing the Nigerian oil sector and to implement long-term solutions that would stabilize and boost production.
Speaking at the launch of the initiative in Abuja on Monday, during the NUPRC’s third anniversary celebration, President Bola Tinubu, represented by the Secretary to the Government of the Federation (SGF), George Akume, underscored the importance of increasing oil production. He pointed to the benefits of job creation, increased government revenue, and improved energy security. Tinubu urged all stakeholders to cooperate to achieve this ambitious goal and emphasized that his administration’s economic policies, which focus on energy and infrastructure development, are critical to making this possible.
NUPRC’s Chief Executive, Gbenga Komolafe, explained that the project would unlock incremental oil production in the short-to-medium term. He highlighted the significance of fostering operational excellence and ensuring Nigeria’s national economic resilience in the face of global energy shifts. Komolafe also provided updates on recent divestment transactions, revealing that four out of five asset divestment deals had been successful. However, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited did not meet regulatory requirements, posing a challenge to ongoing efforts.
Minister of State for Petroleum Resources, Heineken Lokpobiri, and the Group Chief Executive Officer of NNPC Limited, Mele Kyari, reiterated the need for cooperation among stakeholders to boost production. They called for joint efforts to overcome challenges such as oil theft, pipeline vandalism, and regulatory bottlenecks that have plagued the industry for decades.
Furthermore, institutions such as the National Assembly, the Nigerian Navy, financial institutions, and heads of major international oil companies expressed their commitment to making the additional 1 million barrels per day (mbpd) initiative a reality. This pledge reflects a shared sense of urgency to revitalize the sector, which has been hindered by corruption, inefficiency, and the illicit siphoning of oil.
Historical Context of Oil Theft in Nigeria:
The unveiling of this initiative comes against the backdrop of a long history of oil theft and illegal bunkering in Nigeria, particularly in the Niger Delta region, where the majority of the country’s oil reserves are located. Oil theft, also known as “bunkering,” has been a persistent problem since Nigeria became a major oil exporter in the 1970s. The issue has severely impacted Nigeria’s crude oil output, with billions of dollars lost annually due to theft, vandalism, and the diversion of oil from pipelines.
During the 1990s and 2000s, the problem intensified as militant groups in the Niger Delta began to sabotage pipelines and siphon oil as part of their broader grievances over the environmental degradation and lack of development in the oil-rich region. Despite various government interventions and the creation of security initiatives to protect oil infrastructure, the problem has persisted.
In recent years, Nigeria’s oil production has often fallen short of its potential due to theft and underinvestment in infrastructure. The new 1 million barrels per day initiative seeks to reverse these trends by addressing some of the root causes of underperformance in the oil sector. Increased security measures, investment in technology, and regulatory reforms are expected to play a crucial role in achieving the ambitious targets set by the NUPRC.
The initiative represents a pivotal moment in Nigeria’s efforts to reclaim its position as Africa’s top oil producer while strengthening its economy in a world that is increasingly shifting towards cleaner energy sources.
