The Nigerian Upstream Petroleum Regulatory Commission has raised daily oil production to 1.84 million barrels, a development that aligns fully with President Bola Tinubu’s mandate to boost output and maximise revenue from the nation’s hydrocarbon resources. Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, commended the Commission for the achievement during a visit by NUPRC Chief Executive, Mrs Oritsemeyiwa Eyesan, to the Ministry of Finance headquarters in Abuja.
“It is heartening that you can tell us production is 1.84 million barrels per day. That is fantastic news. That aligns fully with President Bola Tinubu’s mandate. You have started well. Please keep it up,” Edun said. The Minister described the ongoing Middle East conflict as unfortunate, noting that President Tinubu had already directed increased oil production before the crisis. He urged the Commission to intensify efforts toward achieving two million barrels per day output.
“I wish you continued success. What matters is sustaining progress. We do not want any interruption along the way. The trajectory must be maintained, and the target remains two million barrels per day,” the coordinating Minister of the economy said.
Earlier, Eyesan confirmed that daily crude production had reached 1.84 million barrels. “We are doing 1.84 million barrels per day. It is a remarkable feat, but we are confident of further growth,” she said. She attributed February’s production dip to incidents at key facilities and scheduled turnaround maintenance, but noted that those issues had been resolved and production was now increasing steadily.
From an economic perspective, the production increase carries significant implications for Nigeria’s fiscal position. Oil revenue remains a critical component of government earnings, funding the national budget and providing foreign exchange for the economy. Higher production volumes at prevailing global prices, which have been elevated due to Middle East tensions, translate directly into increased revenue for the Federation Account, supporting allocations to federal, state, and local governments. The timing of the increase is particularly fortuitous, as it comes when global supply disruptions have created favourable pricing conditions.
On the 2025 licensing round, Eyesan said the Commission was currently at the technical and financial evaluation stage. She expressed optimism about sector growth, citing provisions such as the “drill or drop” clause in the Petroleum Industry Act. This clause empowers the Commission to revoke licences for dormant oil blocks, a provision designed to incentivise holders of exploration licences to either develop the acreages or return them to the government for reallocation to more capable operators. The threat of licence revocation creates pressure for timely development and reduces the phenomenon of acreage hoarding, where companies hold blocks without meaningful activity.
Eyesan noted that some offered acreages could begin production within a year, highlighting the strong capacity among indigenous firms. This assessment reflects a shift in the sector’s landscape, where Nigerian companies have acquired assets previously held by international oil majors and demonstrated the ability to operate them effectively. Indigenous firms often have lower cost structures and greater flexibility, enabling them to develop marginal fields and smaller discoveries that might not be commercially viable for larger international companies.
The Commission has also complied fully with Executive Order 9 of 2026, Eyesan confirmed. The order suspends the 30 per cent Frontier Exploration Fund deduction from oil and gas profits, as well as other management fees, and mandates direct remittance to the Federation Account. The Frontier Exploration Fund was designed to finance exploration in frontier basins, but the suspension reflects a policy decision to prioritise immediate revenue availability for the Federation Account, from which all three tiers of government draw allocations.
The “drill or drop” clause and the suspension of frontier deductions represent complementary policy tools. The former encourages active development of existing acreages, while the latter increases the cash available for distribution from current production. Together, they signal a government focus on maximising revenue from the oil and gas sector while creating conditions for continued investment in exploration and development.
For the NUPRC, the challenge now is to sustain the production momentum and achieve the two million barrel per day target. This will require maintaining security in oil producing areas, ensuring that pipeline infrastructure is functional, and resolving any regulatory or contractual disputes that could disrupt operations. It will also require continued collaboration with oil companies, both international and indigenous, to optimise production from existing fields while bringing new ones online.
The production increase is also significant for Nigeria’s standing within the Organisation of Petroleum Exporting Countries. Higher production volumes strengthen Nigeria’s position in quota negotiations and demonstrate the country’s capacity to contribute to global supply. As OPEC members navigate a complex market environment characterised by geopolitical tensions and demand uncertainties, reliable production data and consistent output are valuable assets.
