KEY POINTS
- CFEAD commends NNPC and NUPRC for reforms it says are improving production, cutting costs and restoring investor confidence.
- NNPC reportedly secured $20bn in gas supply agreements, while crude production rose to about 1.71 million barrels per day.
- The group urges sustained reforms, transparency and accountability to ensure increased investment translates into broader benefits for Nigerians.
The Citizens Forum for Energy Accountability and Development, CFEAD, has commended the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, for what it described as encouraging progress in Nigeria’s oil and gas industry.
The organisation said recent production, investment and operational performance figures from the two institutions indicated that ongoing reforms were beginning to deliver measurable improvements across the petroleum sector.
According to CFEAD, the developments point to growing investor confidence in Nigeria’s energy industry after years of production challenges, regulatory uncertainty and operational inefficiencies.
A major highlight identified by the group is the reported $20 billion worth of gas sale and purchase agreements secured by NNPC over the past year.
CFEAD said the agreements represented more than commercial deals, describing them as evidence of renewed interest in Nigeria’s abundant gas resources and the long-term prospects of the country’s energy market.
NNPC Group Chief Executive Officer Bayo Ojulari had disclosed that the agreements include long-term supplies of 1.29 billion standard cubic feet per day of liquefied natural gas feed gas and 750 million standard cubic feet per day of domestic industrial gas supply to DFL FZE and Dangote Refinery. Seven additional commercial transactions are also reportedly in the pipeline.
The group said the expansion of gas supply arrangements could strengthen Nigeria’s industrial base by providing more reliable energy for manufacturers and other businesses while improving the country’s position in the global gas market.
Oil production reaches five-year high
CFEAD also highlighted a reported six per cent increase in crude oil production and an 8.1 per cent rise in gas production.
Crude production reportedly climbed to about 1.71 million barrels per day, which the organisation described as the highest level recorded in five years.
The group said the improvement was particularly significant given Nigeria’s longstanding production challenges, including operational disruptions, infrastructure problems, crude theft and other inefficiencies.
It argued that sustained growth in production could strengthen government revenues, support public services and contribute to wider economic activity.
According to CFEAD, NNPC has also reduced operating costs by approximately $3.4 billion through contract restructuring and optimisation.
The organisation said the cost reductions, combined with higher production, suggested that greater operational efficiency could help Nigeria recover value previously lost through inefficient processes and disruptions.
It also pointed to NNPC Exploration and Production Limited’s reported record production of 365,000 barrels per day and an average recovery rate of 98 per cent across NNPC’s five crude oil export terminals between April 2025 and May 2026.
CFEAD said the figures indicated that improvements in operational management could have a significant impact on Nigeria’s petroleum output and revenues.
