Nigeria Cuts Crude Oil Theft to 5,000 Barrels Per Day

By Adedapo Adesanya

Nigeria has adequately reduced the amount of crude oil lost to theft by 95 per cent to as low as 5,000 barrels per day at the end of 2024, from a high of up to 108,000 barrels per day in first quarter of 2022.

This was disclosed by the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, while speaking in Abuja over the weekend.

According to Mr Komolafe, the reduction is a major boost for the 2025 budget as Nigeria aims to produce 2.06 million barrels per day this year, at an international crude oil price of $75 per barrel.

The country also aims to reduce deficit financing for the over N54 trillion budget this year.

Mr Komolafe stated that due to the renewed onslaught on oil theft, crude production in Nigeria now averages 1.75 million barrels per day, with gas production now hitting 7 billion standard cubic feet per day (scfd).

“Oil theft averaged 108,000 bpd in Q1, 2022 resulting in the shutdown of trunklines (TNP, TFP, NCTL etc).

He noted that production dropped to as low as one million barrels per day in September 2022 (loss of around 600, 000 barrels per day) due to the shutdown of the trunk lines.

“Oil theft has significantly reduced due to the ongoing kinetic and non-kinetic intervention by the government. The oil theft which averaged about 12,000 barrels per day in the last 24 months further reduced to 5,000 barrels per day in the last quarter.

“Whereas the production fluctuated around 1.5 million barrels per day, the sustained fight against oil theft has resulted in steady increase in production. We were able to restore and sustain the production to 1.7 barrels per day. Efforts are ongoing to increase the production by l million bpd by December 2026,” Mr Komolafe stated.

He emphasised the need for a paradigm shift to position Nigeria as a leader in energy security and economic growth, highlighting several reforms and achievements in Nigeria’s oil and gas sector.

On Nigeria’s oil and gas potential and global positioning, he noted that Africa accounts for five of the world’s top oil-producing countries, and that the country stands as the continent’s second-largest oil reserve holder.

In the same vein, he stated that Nigeria has the largest gas reserves standing at 209 Trillion Cubic Feet (TCF), with oil reserves estimated at 37.5 billion barrels.

The NUPRC boss stated that since the enactment of the Petroleum Industry Act (PIA) in 2021, the commission had driven several initiatives to enhance regulatory effectiveness and attract investments.

The commission, he said, unveiled its 10-year regulatory and corporate strategic plan (2023–2033) in May 2023, followed by a regulatory action plan for 2024, detailing key industry reforms.

These reforms, according to him, focus on increasing oil and gas reserves and production, enhancing hydrocarbon accounting transparency and achieving cost efficiency and decarbonisation in upstream operations.

On the 2024 licensing round and investment drive, Komolafe highlighted that NUPRC launched its 2024 round, offering 24 oil and gas assets to investors, explaining that to attract global participation, the commission held roadshows in Houston, Miami, London and Paris, showcasing Nigeria’s energy potential.

He said the government aims to increase production by 1 million barrels per day by December 2026 under the Project 1 MMBOPD Initiative, leveraging collaboration among operators, service providers, financiers and host communities.