Nigeria Cuts Oil Sector Signature Bonus from $100m to $10m to Spur Investment and Raise Output to 2.5 Million Barrels per Day by 2027
The Federal Government of Nigeria has significantly reduced the oil sector’s signature bonus—from about $100 million to $10 million—as part of efforts to drive crude oil production to 2.5 million barrels per day (bpd) by 2027.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, announced the development at the 2025 Nigeria Association of Energy Correspondents (NAEC) Conference in Lagos.
Komolafe explained that President Bola Tinubu approved the reduction during the 2024 mini-bid round to attract fresh investment and accelerate oil field development.
According to him, the decision has already boosted investor confidence, encouraged early production, and reinforced Nigeria’s competitiveness in the global upstream oil market.
He noted that the Commission is prioritizing production optimization and enhanced recovery, focusing on field development plan reviews, brownfield optimization, and re-entry of shut-in wells—initiatives that have reactivated activities across mature oil assets.
Komolafe stated that these measures could add over one million barrels per day to Nigeria’s total output, helping the nation achieve its 2027 production target.
To further safeguard production, the NUPRC is working with security agencies, private operators, and host communities to protect vital oil infrastructure.
The Commission has enforced the Upstream Measurement and Advance Cargo Declaration Regulations, helping to cut crude oil theft by 90 percent—from 102,000 barrels per day in 2021 to about 9,600 barrels per day in September 2025.
In addition, over 90 Host Communities Development Trusts have been established across the Niger Delta, ensuring direct funding for local communities.
Komolafe said this initiative fosters local ownership, peace, and stability, which are crucial for sustained energy production and security.
He described Nigeria’s upstream recovery as the outcome of deliberate regulatory reforms rooted in transparency, efficiency, and inclusiveness.
Komolafe emphasized that the NUPRC’s strategic actions align with the government’s economic diversification and sustainability agenda, particularly through the “Decade of Gas” initiative, which promotes natural gas as a transition fuel for industrialization, power generation, and clean energy.
By advancing gas monetization, flare reduction, and gas-based investments, the Commission aims to drive a balanced and equitable energy transition.
With global upstream investments projected to exceed $580 billion in 2025, Komolafe noted that hydrocarbons will remain essential to industrial growth in emerging economies like Nigeria.
Reaffirming the government’s commitment, he concluded that Nigeria remains focused on sustaining upstream recovery, achieving the 2.5 million bpd target by 2027, expanding gas monetization, safeguarding energy infrastructure, and upholding transparency, accountability, and efficiency across the oil and gas sector.
