The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set to launch Project NEXUS, a flagship transformation initiative aimed at enhancing regulatory efficiency and positioning Nigeria as a leading energy hub in Africa.
The announcement was made by NMDPRA Chief Executive Saidu Mohammed at the 26th Oloibiri Lecture Series and Energy Forum (OLEF) held in Abuja.
A Multi-Pronged Approach to Ambitious Goals
The initiative was unveiled against the backdrop of Nigeria’s broader strategy to achieve a crude oil production target of 3 million barrels per day (bpd) by 2030, with an interim goal of 2 million bpd by 2027.
Project NEXUS is designed to coordinate the industry’s transformation journey, focusing on sustainable energy development, accelerated gas growth, and consolidating Nigeria’s role as an energy hub for the continent.
Underpinning Project NEXUS is the Midstream and Downstream Petroleum Industry Sustainability Initiative (MDPISI). This component aims to serve the sustainability goal by reducing the carbon footprint of the sector, accelerating blue hydrogen development, and promoting Carbon Capture, Utilisation, and Storage (CCUS) technologies.
Beyond Drilling: Digitalisation, Capital, and Policy
The push for 3 million bpd comes as stakeholders across the value chain—including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC)—agree that success requires more than just drilling wells.
According to NUPRC Chief Executive Oritsemeyiwa Eyesan, achieving the target demands a deliberate alignment of policy, capital, and technology.
A central theme of the forum was the urgent need for digitalisation. NNPC Group CEO Bayo Ojulari warned that the industry must move beyond “lip service” to digitalisation, announcing plans to review partners’ budgets to assess their investment in Artificial Intelligence (AI). The goal is to mine decades of untapped data—some dating back to 1956—to slash costs and improve decision-making.
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Regulatory reforms under the Petroleum Industry Act (PIA) are credited with restoring investor confidence. Eyesan noted that major projects like Bonga North, Ubeta, and HI are expected to attract over $10 billion in Final Investment Decisions (FIDs), while NNPC confirmed that recent reforms have unlocked over $24 billion in fresh investments.
The ‘Big Bank’ Project Strategy
To accelerate production growth, Saidu Mohammed emphasised the need for “Big Bank” projects—large-scale, high-impact developments capable of delivering hundreds of thousands of barrels of oil per day. This upstream focus must be matched by investments in midstream infrastructure, including pipeline networks and gas processing facilities, to support the increased output.
With the 2030 deadline approaching, Project NEXUS represents the regulatory framework intended to ensure that Nigeria not only hits its production targets but does so efficiently, sustainably, and competitively in the global market.
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. He can be reached via @VICTOREZEJA on X
