The Nigerian Upstream Regulatory Commission (NUPRC) says the Federal Government has reduced the cost of the signature bonus from about $100 million to $10 million in its bid to achieve oil production of 2.5 million barrels per day by 2027.

This was disclosed by Gbenga Komolafe, the Commission’s Chief Executive, at the Nigeria Association of Energy Correspondents (NAEC) Conference 2025 held in Lagos on Thursday.

According to him, during the 2024 mini-bid round, President Bola Tinubu approved the downward review, allowing investors to commit more resources to field development.

“This single decision has strengthened investor confidence, encouraged early production and reinforced Nigeria’s reputation as an open and competitive upstream jurisdiction.

“More so, the Commission also prioritised production optimisation and recovery enhancement. By reviewing field development plans, supporting brownfield optimisation and enabling the re-entry of shut-in wells, the NUPRC has facilitated renewed activity across mature assets.”

The NUPRC Chief said that the 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.

He noted that a sustainable rebound also demands secure infrastructure and credible measurement systems.

To this end, the Commission said it has collaborated with security agencies, private contractors and community stakeholders in implementing the

Upstream Measurement Regulation and the Advance Cargo Declaration Regulation, and has led to a 90 per cent reduction in crude oil theft

from over 102,000 barrels per day in 2021 to 9,600 barrels per day as of September 2025.

“By implementing the PIA’s Host Communities Development Trust (HCDT) provisions, the Commission has successfully inaugurated over 90 Trusts across the Niger Delta, ensuring that development funds flow directly to communities.

“This model not only secures local ownership but also guarantees peace, stability and continuity in production, key pillars for sustained energy security.

“The rebound we are witnessing in Nigeria’s upstream sector is not by chance. It is the outcome of deliberate regulatory design, anchored on transparency, efficiency and inclusiveness.

“The Commission’s strategic vision aligns with Nigeria’s broader economic goals and global sustainability commitments.”

Komolafe added that Nigeria was accelerating its gas target.

“We are advancing Nigeria’s gas agenda as part of the “Decade of Gas” and the nation’s energy transition pathway.

“Natural gas remains our most reliable transition fuel, a catalyst for

industrialisation, power generation and clean energy substitution. By promoting gas monetisation, flare elimination and gas-based investments, the Commission is reinforcing Nigeria’s commitment to a just and balanced energy transition.

“Globally, the context reinforces this direction. The IEA projects that upstream investment will surpass $580 billion in 2025, marking a steady recovery from pandemic lows.

While renewables will continue to grow, hydrocarbons will remain central to industrialisation, particularly in emerging economies like Nigeria”.

Komolafe stressed that the federal government’s target is to achieve 2.5 million barrels per day to boost revenue.

“As we look to the future, our priorities remain clear: to sustain Nigeria’s upstream rebound, achieve 2.5 million BOPD by 2027, strengthen gas monetisation, protect our energy infrastructure, and uphold the principles of transparency, accountability and efficiency that define our regulatory mandate.” (CHANNELS)