Energy
Nigeria loses $15b annually to oil theft — Study
By Grace Edet
Nigeria is losing an estimated $15 billion annually to oil theft and pipeline vandalism, according to a new study by energy economist Professor Usman Muhammed of Kaduna State University.
He warned the development could derail the Tinubu administration’s Renewed Hope Agenda beyond 2027.
Presenting the report at the 1st Citizens Engagement Conference (North-West Edition) in Kaduna, themed “The Positive Impact of Oil and Gas Reforms by President Bola Ahmed Tinubu,” Professor Muhammed described the losses as “a major threat to national economic recovery and fiscal stability.”
“Despite being Africa’s largest oil producer, the country continues to struggle with declining productivity and weak institutional accountability,” Muhammed said.
Sector under strain despite huge reserves
The study noted that Nigeria, which holds about 37 billion barrels of crude oil and 209 trillion cubic feet of gas reserves, remains hamstrung by poor governance, policy inconsistency, and decaying infrastructure.
Between 2019 and 2024, the country’s oil output averaged 1.4 to 1.67 million barrels per day (bpd) — below its OPEC quota of 1.8 million bpd, while inflation and unemployment climbed to 22 per cent and 33 per cent, respectively.
Muhammed said these trends have combined to erode national revenue, deepen economic hardship, and weaken investor confidence in the energy sector.
PIA implementation yet to deliver full impact
The report acknowledged that the Petroleum Industry Act (PIA) 2021 introduced key structural reforms, including the creation of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
However, he noted that the benefits remain “largely unrealised” due to weak enforcement and poor institutional coordination.
“Implementation of the PIA and the commercialisation of NNPC have begun to yield modest results, but production efficiency and local content development remain moderate,” he said.
Muhammed’s findings also showed a strong correlation (r = 0.74) between crude oil production and GDP growth, suggesting that higher output could significantly boost Nigeria’s economic performance. Regulatory quality and investment inflows, he added, account for over 81 per cent of GDP variance in the oil and gas sector.
Nigeria trails peers in regulatory performance
A comparative analysis presented at the conference placed Nigeria far behind global peers in regulatory efficiency, scoring 63 out of 100, compared to Norway’s 92 and the United States’ 90.
Muhammed attributed this gap to poor technology adoption, weak oversight, and inadequate policy coherence.
“The twin problems of oil theft and pipeline vandalism have continued to undermine the sector’s growth. Without decisive measures, Nigeria risks losing the transformative gains envisaged under the Renewed Hope Agenda,” he warned.
The study recommended digital monitoring of oil production, rehabilitation of pipelines with anti-theft technologies, and increased research and development funding. It also called for deeper investment in gas-based industrialisation to diversify the economy.
Private capital seen as the way forward
In his remarks, Mallam Nasir AbdulQuadri, Co-convener of the conference, urged the federal government to step back from direct participation in refinery operations and allow private investors to lead the process.
He said: “When we talk about reform in the oil sector, it means the government must take its hands off business. Public refineries have failed for decades, but one man’s vision has given us the 650,000 barrels per day Dangote Refinery — proof that private ownership works.”
AbdulQuadri argued that deregulation is already paying off through increased transparency and reduced corruption.
“When we deregulate, we kill corruption. The subsidy era enriched a few individuals at the expense of the nation. Now, the process is open and transparent,” he explained.
Bridging the policy-citizen gap
AbdulQuadri emphasized the need to improve public awareness about the government’s reform agenda, noting that misinformation has clouded citizens’ perception of the sector’s progress.
“This conference is about bridging the information gap between citizens and government. Many Nigerians are unaware of the positive changes happening in the sector, and that ignorance breeds misinformation,” he said.
He further appealed for unity and collective support for reforms, adding: “In this country, we don’t have Hausa, Igbo, or Yoruba; we don’t have Muslim or Christian — only good and bad people. Good Nigerians must work together against those using tribe and religion to divide us.”
Experts call for stability and transparency
Participants, including regulators, industry experts, and civil society leaders, agreed that the long-term health of Nigeria’s oil and gas industry depends on policy stability, transparency, and greater private-sector participation.
Professor Muhammed concluded that the sustainability of Tinubu’s Renewed Hope Agenda hinges on deeper institutional reform and diversification of the economy.
“Sustainable growth beyond 2027 depends not just on oil output, but on Nigeria’s ability to institutionalise regulatory excellence, diversify its economy, and strengthen public accountability,” he said.
Energy
NNPC E&P Limited Hits Record 355,000 bpd Production
• Nigeria’s Energy Revival Already Happening, Says Ojulari
On December 1st, 2025, NNPC E&P Limited (NEPL), the flagship upstream subsidiary of NNPC Limited, achieved a record production level of 355,000 barrels of oil per day, its highest daily output since 1989.
The milestone marks a significant step forward for Nigeria’s upstream sector and reflects the company’s ongoing transformation anchored on efficiency and discipline.
The figures show genuine transformation: average daily production surged 52%, rising from 203,000 barrels per day in 2023 to 312,000 in 2025.
This growth is no coincidence; it stems from a clear strategy anchored on operational excellence, strong asset management, and structured field development. NEPL’s performance demonstrates that with the right leadership, strengthened systems, and a committed workforce, Nigeria’s upstream sector can overcome years of instability.
The achievement converts national ambition into measurable momentum. The presidential targets of 2 million barrels per day by 2027 and 3 million by 2030 have often appeared aspirational. NEPL’s delivery brings them closer to reality.
Speaking on the development, Engr. Bashir Bayo Ojulari, the Group CEO of NNPC Limited pointed out that the milestone is proof that Nigeria’s energy revival is not a dream; it is already happening.
“By showing its ability to exceed its own production benchmarks, NEPL confirms that the essential building blocks for scaling national output are being firmly established. The achievement signals that the machinery of production—equipment, processes, capabilities, and partnerships—can be driven with commercial discipline to produce real and positive outcomes,” Ojulari stated.
He noted that the achievement reinforces confidence nationally and across the global energy landscape, assuring partners and investors that Nigeria is committed to reaffirming its role as a dependable energy supplier.
Also speaking, Udy Ntia, the Executive Vice President, Upstream, observed that the milestone goes beyond the 355,000 bpd figure.
“In a sector where shortcuts can yield short-term wins but long-term damage, NEPL is making a different point: sustainable progress must rest on responsible operations. This ensures that scaling production does not compromise worker safety, community wellbeing, or environmental protection. It reinforces a shift away from extraction at any cost towards sustainable value creation—a core requirement for any modern energy company seeking global relevance,” Ntia added.
Nicolas Foucart, MD, NEPL also noted that NEPL’s record-setting performance mirrors the broader transformation unfolding across NNPC Limited.
“This is a story shaped by leadership that charts a clear course; by partnerships built on alignment and accountability; and by a workforce whose hard work is turning goals into measurable progress. Our people, our processes, and principles are the real engines behind this success. We are building for tomorrow, not just celebrating today,” Foucart stated.
He added: “For Nigerians, this accomplishment means far more than increased barrels; it translates into greater national revenue, stronger energy security, and a more resilient economic foundation. NEPL has not only produced more hydrocarbons; it has reignited belief in what Nigeria’s energy sector can achieve with the right systems, culture, and dedication.”
NNPC E&P Limited is a wholly-owned subsidiary of the Nigerian National Petroleum Company (NNPC) Limited involved in the exploration and production of oil and gas resources.
Energy
Abia State, NDPHC begin construction of 7.5MVA injection substation
The Abia state government, in partnership with the Niger Delta Power Holding Company (NDPHC), has commenced the construction of a 7.5MVA, 33/11kV Injection Substation in Umuahia.
The state governor, Governor Alex Otti, at the groundbreaking ceremony, described the project as a transformative initiative that will significantly boost power supply and enhance distribution reliability across the state, noting that the new infrastructure marks the beginning of a broader effort to modernise Abia’s power network.
The project is being executed by NDPHC under the National Integrated Power Project (NIPP). Its scope includes the construction of a 1km 33kV line, 1.2km of 11kV line, installation of two 300kVA distribution substations, and the provision of 2km of low-tension line.
Governor Otti commended the Federal Government and NDPHC for prioritising Abia in this strategic intervention. He also applauded President Bola Tinubu’s ongoing reforms in the power sector, which he said have expanded the national electricity framework to encourage stronger state participation, private sector investment, and global partnerships.
The governor further revealed that the state government has budgeted for an additional 7.5MVA Injection Substation in the 2026 fiscal year, which will raise the combined capacity in the Ogurube Layout area of Umuahia to 15MVA once completed.
NDPHC Managing Director/CEO, Jennifer Adighije, an engineer, who was represented at the event by Executive Director, Networks, Bello Babayo Bello, reaffirmed the company’s commitment to expanding access to reliable and sustainable electricity nationwide.
She said the Umuahia project reflects NDPHC’s mandate to empower communities and drive economic development.
When completed, the substation is expected to strengthen electricity supply, support small businesses, promote industrial development, and ultimately improve the quality of life for residents of Umuahia and surrounding communities.
Energy
NNPC/Heirs Energies lead responsible gas commercialisation at OML 17
The NNPC/Heirs Energies OML 17 Joint Venture yesterday advanced Nigeria’s gas commercialisation and environmental initiative with the symbolic signing of Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP) and approved Non-NGFCP frameworks.
The ceremony, which held in Lagos, marks a significant transition from regulatory approvals to structured commercial execution, enabling flare gas volumes across OML 17 to be captured and deployed for productive use, including power generation, industrial applications, LPG and CNG, in alignment with Nigeria’s gas development priorities and energy-transition objectives.
The agreements was signed between Heirs Energies, as operator of the OML 17 JV and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value.
Speaking at the ceremony, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services (NUIMS), Seyi Omotowa, an engineer, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.
“For us at NNPC Limited and NUIMS, flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery,” Omotowa said.
He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Engr. Gbenga Komolafe, who was represented by Senior Manager, Ojo Ezekiel, reaffirmed the Commission’s support for the project, describing flare gas commercialisation as a cornerstone of Nigeria’s decarbonisation pathway under the Petroleum Industry Act (PIA) 2021.
“This ceremony demonstrates Heirs Energies’ commitment to eliminating routine gas flaring across OML 17 and aligns fully with the Commission’s Gas Flare Commercialisation Programme and national energy and emission-reduction objectives,” Ezekiel said.
Heirs Energies’ Chief Executive Officer, Osa Igiehon, noted that the agreements reflect the company’s broader gas-led strategy and brownfield excellence approach, focused on creating long-term value for Nigeria.
“Gas sits at the heart of Nigeria’s development journey. Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17,” he said.
The NGFCP and Non-NGFCP flare gas projects build on recent operational progress by the OML 17 JV, including a significant increase in gas delivery to the domestic market through brownfield interventions and infrastructure optimisation. The JV has also continued to deepen its host-community partnerships through targeted healthcare interventions, education support and skills-development programmes across its areas of operation.
With the symbolic signing completed, the flare gas offtakers are expected to progress into full project implementation, working closely with the JV, regulators and communities to deliver commercial, environmental and social outcomes.
The OML 17 NGFCP initiative reinforces Nigeria’s position as a gas-led economy, supporting domestic power generation, industrial growth and responsible resource development while advancing the country’s energy-transition objectives.
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