October 29, 2025/CSL Research
Nigeria is stepping up efforts to boost oil production and attract fresh investments through strategic partnerships with global financial institutions, including the Bank of America. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Chief Executive Gbenga Komolafe, has opened discussions with the bank to explore opportunities for increased funding and collaboration in the upstream petroleum sector. This initiative forms part of the Federal Government’s broader strategy to stabilise crude output, restore investor confidence, and ensure long-term growth in the oil and gas industry. Komolafe noted that limited access to capital remains a major challenge for operators seeking to expand exploration and production activities.
The engagement with the Bank of America, he explained, aligns with ongoing reforms under the Petroleum Industry Act (PIA) 2021 aimed at strengthening international partnerships and attracting sustainable financing for the sector. After years of underinvestment, crude theft, and pipeline vandalism that pushed production below 1.3 million barrels per day (bpd) in 2022, Nigeria has seen a gradual recovery supported by regulatory reforms and improved security measures. The Federal Government now targets up to US$20 billion in new oil and gas investments by 2030 and has set an ambitious short-term production goal of 2.5 million barrels per day (mbpd) by 2026.
However, risks persist. Average crude oil production declined to 1.39 mbpd in September 2025, down 44,576 barrels from 1.43 mbpd in August, marking the second consecutive monthly drop and remaining below Nigeria’s OPEC+ quota of 1.5 mbpd. Including condensates, total production slipped to 1.58 mbpd in September from 1.63 mbpd in August.
Despite these challenges, recent months have brought positive investment signals that could help Nigeria achieve its medium-term production target. The NUPRC has introduced incentives to fast-track project approvals, revive dormant oil fields, and attract new investments in deep-water exploration. Major international oil companies are reportedly in advanced talks to inject billions of dollars into upstream development, infrastructure upgrades, and asset revitalisation projects. If sustained, these initiatives could support higher production levels.
Click here to download full report: CSL Nigeria Daily – 29 October 2025 – Oil.pdf
