FG cuts oil block signature bonuses to boost investment — NUPRC
The Federal Government has reduced signature bonuses for oil blocks from about $100 million to $10 million, says the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Mr Gbenga Komolafe, Commission Chief Executive of NUPRC, disclosed this on Thursday at the Association of Energy Correspondents of Nigeria (NAEC) annual conference in Lagos.
He said the downward review of signature bonuses is among several strategic reforms introduced to reposition Nigeria’s upstream petroleum sector for growth and competitiveness.
“This single policy shift has enhanced investor confidence, enabled early field development, and reaffirmed Nigeria’s standing as a transparent investment destination,” Komolafe stated.
He added that NUPRC has implemented a fully digital and transparent licensing framework to improve efficiency and reduce human interference during bid rounds.
According to him, the 2024 mini-bid round minimised human interface, ensuring maximum transparency and fairness in the licensing process.
Komolafe said the Commission has prioritised production optimisation and enhanced oil recovery by supporting brownfield projects and reviewing field development plans.
He added that the Commission has also enabled the re-entry of shut-in wells to boost output and support Nigeria’s production recovery efforts.
“These interventions are projected to deliver incremental production exceeding one million barrels of oil per day by 2027,” he said.
Komolafe stressed the importance of secure infrastructure and credible measurement systems for sustainable crude production growth.
He revealed that NUPRC’s collaboration with security agencies, private contractors, and host communities has produced significant results.
“Through the Upstream Measurement and Advance Cargo Declaration Regulations, crude oil theft has fallen by 90%, from 102,000 barrels daily in 2021 to 9,600 in September 2025,” he said.
Komolafe stated that the Commission is also advancing host community development through the Host Communities Development Trust (HCDT) under the Petroleum Industry Act (PIA) 2021.
He said over 90 Trusts have been established across the Niger Delta, ensuring that development funds reach the communities directly.
“This model promotes local ownership, guarantees stability, and secures continuity in production — key pillars of sustained energy security,” he added.
Komolafe said the resurgence in Nigeria’s upstream sector results from deliberate reforms anchored on transparency, efficiency, and inclusiveness.
He noted that NUPRC’s vision aligns with Nigeria’s broader economic agenda and global sustainability goals.
“We are advancing the national gas agenda under the ‘Decade of Gas’ initiative to promote gas as a transition fuel and catalyst for industrial growth,” he said.
Citing the International Energy Agency (IEA), Komolafe said global upstream investment is expected to exceed $580 billion in 2025.
He added that Nigeria is well-positioned to attract its fair share as hydrocarbons continue to meet the energy needs of developing nations.
“While renewables will grow, hydrocarbons remain vital to industrialisation in emerging economies. The key is to ensure responsible, transparent production,” he explained.
Komolafe urged journalists to report accurately and responsibly, stressing the media’s role in shaping investor confidence and public perception.
“Information is power. Responsible reporting shapes investment decisions and enhances national credibility,” he said.
Reflecting on NUPRC’s progress, Komolafe recalled that the Commission inherited a sector battling declining investment and regulatory uncertainty.
He said the passage of the Petroleum Industry Act in 2021 provided clarity, transparency, and predictability for recovery and growth.
“Today, the building blocks for an upstream rebound are firmly in place,” he affirmed.
He noted that the global energy landscape is changing rapidly, with hydrocarbons competing alongside renewables.
“The challenge lies in aligning our oil and gas production with sustainability standards. Our task is to manage this transition responsibly,” Komolafe stated.
NAN
