In its quest to strengthen investor confidence in Nigeria’s oil and gas sector and boost production, the federal government has slashed the signature bonus by 90 per cent from about $100 million to $10 million.
This is as it targets 2.5 million barrels per day by 2027.
Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) Gbenga Komolafe, who made this known at the Nigeria Association of Energy Correspondents (NAEC) Conference 2025 in Lagos on Thursday, said the gesture is to encourage investors to commit more resources to field development.
Komolafe said President Bola Tinubu had approved the reduction during the 2024 mini-bid round.
He said the Commission has embarked on a couple of activities which have resulted in a rebound in oil production. These, according to him, include reviewing and approving field development plans and enabling the re-entry of shut-in wells, among others.
Earlier in its four-year scorecard, the Commission had disclosed that 79 Field Development Plans (FDP) with a potential investment of $39.98 billion were approved between 2024 and 2025. It also stated that 306 development wells were drilled and completed between 2022 and 2025.
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While the current average daily production of crude oil stands at 1.65 Mbopd, the NUPRC boss said the ongoing interventions are expected to produce incremental quantities of more than one million barrels of oil per day, which would be a significant step in reaching the 2.5 million barrels of oil per day national production target by 2027.
Komolafe further stated that to sustain the positive momentum in oil production, the Commission has collaborated with security agencies, private contractors and community stakeholders in implementing the Upstream Measurement Regulation and the Advance Cargo Declaration Regulation.
He said the effort has led to a 90 per cent reduction in crude oil theft in the last four years, as crude losses dropped from over 102,000 barrels per day in 2021 to 9,600 barrels per day as of September 2025.
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He also hinted at efforts to boost gas production as part of the “Decade of Gas” initiative and the nation’s energy transition drive.
“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,” Komolafe stated.
He also highlighted efforts towards implementing the Petroleum Industry Act (PIA) provisions on Host Communities Development Trust (HCDT). According to him, the upstream regulator 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,” he noted.
Host Community Trust Fund
In the scorecard, the Commission disclosed that Host Community Development Trusts have remitted a combined total of about ₦358.67 billion as of October 2025, “enthroning a conducive host community environment in Nigeria”.
Still on host community development, the NUPRC indicated that it is currently overseeing at least 536 projects at various stages of completion, including schools, health centres, roads and vocational centres, funded by the trust fund. “The achievement has tremendously curbed crude oil theft,” the Commission had noted.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
