The Citizens Forum for Energy Accountability and Development (CFEAD) has commended the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over reported increases in investment and oil and gas production.
The group said the recent figures announced by the NNPC Group Chief Executive Officer, Bayo Ojulari, and the NUPRC Commission Chief Executive, Oritsemeyiwa Eyesan, indicated improved confidence in Nigeria’s petroleum sector.
In a statement issued on Thursday and signed by its Executive Director, Patriot Unazi Gideon, CFEAD said the reported $20 billion worth of gas sale and purchase agreements secured by NNPC in the past year represented a significant development for the sector.
‘The signing of gas sale and purchase agreements worth more than $20 billion is not simply a commercial achievement for NNPC. It is a strong signal to the international investment community that Nigeria remains open for business and is capable of providing the policy direction, resources and commercial opportunities required for long-term energy investments,’ Gideon said.
Ojulari had disclosed that the agreements covered 1.29 billion standard cubic feet per day of long-term LNG feed gas and 750 million standard cubic feet per day of domestic industrial gas supply to DFL FZE and Dangote Refinery, with seven additional commercial transactions in the pipeline.
CFEAD also commended NNPC for reportedly reducing operating costs by $3.4 billion through contract restructuring and optimisation, alongside a six per cent increase in crude oil production and an 8.1 per cent rise in gas production.
The group said the reported increase in crude production to about 1.71 million barrels per day was particularly significant, given the production challenges that have affected the sector in recent years.
‘The increase in crude production to about 1.71 million barrels per day should matter to every Nigerian because production is directly connected to national revenue and economic stability.
‘When the industry produces more efficiently, the country has greater capacity to earn revenue, fund public services, support infrastructure and create opportunities for businesses and workers,’ Gideon said.
CFEAD also cited the reported production of 365,000 barrels per day by NNPC Exploration and Production Limited and an average 98 per cent recovery across NNPC’s five crude oil export terminals between April 2025 and May 2026.
According to the group, the figures showed the potential benefits of improving operational efficiency and reducing production losses.
It also commended the NUPRC for policies aimed at attracting investment into deep offshore oil and gas projects.
The group welcomed the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, which NUPRC said could unlock about $50 billion in investment and increase crude oil and condensate production by an additional one million barrels per day over the coming years.
‘The deep offshore incentive is potentially transformative because it addresses one of the biggest problems facing the petroleum industry: the enormous capital requirement and long investment cycle associated with offshore developments.
‘If properly implemented, the policy can unlock projects that have remained on the drawing board, attract billions of dollars in capital and create thousands of direct and indirect jobs,’ the group said.
CFEAD, however, said increased production and investment should ultimately translate into tangible benefits for Nigerians.
‘The real test of every petroleum reform is not how impressive the figures look at a conference. The real test is whether the benefits eventually reach the ordinary Nigerian.
‘More production should mean stronger government revenue, more jobs, greater energy security, increased industrial activity and a more stable economy,’ it said.
The group specifically cited the $10 billion Bonga South project, expected to commence production in 2027, as an example of the investments that could emerge from a more predictable regulatory environment.
It said the benefits of deep offshore projects could extend beyond crude production to the marine economy, logistics, engineering, technology transfer and skills development.
‘Projects such as Bonga South are important not only because of the barrels they will produce but because of the ecosystem they can create around them.
‘Nigeria needs a petroleum industry that builds Nigerian expertise, strengthens local businesses, develops technology and creates sustainable employment rather than one that simply extracts crude and exports value,’ Gideon said.
CFEAD urged NNPC and NUPRC to sustain the reported reform momentum while maintaining transparency, accountability and institutional independence.
It also called on oil-producing communities, operators, investors, security agencies and other stakeholders to support efforts to increase production and attract investment.
‘Nigeria cannot afford another cycle of reform followed by policy reversal. The progress currently being recorded must be protected from political interference, institutional rivalry and unnecessary bureaucracy.
‘What the country needs now is consistency, transparency and collective support for reforms that are delivering measurable results,’ Gideon said.
The group urged the Federal Government to deepen reforms across the petroleum value chain and maintain an investment-friendly environment.
It also called on NNPC and NUPRC to improve communication of their activities and achievements to Nigerians, saying public understanding and confidence were important to sustaining support for reforms in the sector.
‘Nigerians have heard promises about the oil sector for decades. What makes the current moment different is the emergence of measurable indicators of recovery in production, investment and operational efficiency.
‘We commend the leadership of NNPC and NUPRC, but we also expect them to remain accountable to the Nigerian people and ensure that the gains being recorded become a foundation for broader prosperity,’ the group said.