NNPC reforms attract over $20bn in gas agreements as Nigeria’s crude production rises to 1.71m bpd, boosting investor confidence

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have attracted more than $20 billion in gas agreements as Nigeria’s crude oil production rises to about 1.71 million barrels per day, according to the Citizens Forum for Energy Accountability and Development (CFEAD) on Friday, August 21, 2026.

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The development marks a potentially significant shift for Nigeria’s oil and gas sector, with the advocacy group crediting recent reforms and stronger operational discipline with improving investor confidence.

CFEAD, in a statement signed by its Executive Director, Patriot Unazi Gideon, praised NNPC Group Chief Executive Officer Bayo Ojulari and NUPRC Commission Chief Executive Oritsemeyiwa Eyesan for what it described as measurable progress across the industry.

A major highlight was the more than $20 billion in gas sale and purchase agreements secured by NNPC over the past year.

The agreements reportedly cover 1.29 billion standard cubic feet per day of long-term LNG 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, suggesting that further investment could follow if the current momentum is sustained.

CFEAD also pointed to a $3.4 billion reduction in operating costs through contract restructuring and optimisation, alongside a 6 per cent increase in crude oil production and an 8.1 per cent rise in gas output.

Nigeria’s reported crude production of about 1.71 million barrels per day represents its highest level in five years, according to the figures cited by the organisation.

NNPC Exploration and Production Limited also recorded production of 365,000 barrels per day, while an average recovery rate of 98 per cent was recorded across NNPC’s five crude oil export terminals between April 2025 and May 2026.

The group said the stronger production figures could improve government revenue and create room for greater infrastructure financing, job creation and economic stability.

NUPRC’s deep offshore reforms have also emerged as another potentially powerful driver of investment.

CFEAD welcomed the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, which NUPRC said could unlock about $50 billion in investment and eventually increase crude oil and condensate production by an additional one million barrels per day.

The organisation said the incentive could help revive major offshore developments that have faced delays because of their substantial capital requirements and lengthy investment cycles.

Among the projects highlighted is the $10 billion Bonga South project, which is expected to begin production in 2027.

For CFEAD, however, the investment figures alone should not be treated as the final measure of success.

The group said the real test would be whether higher oil and gas production translates into tangible improvements for ordinary Nigerians through stronger public revenue, employment, energy security and industrial growth.

CFEAD urged NNPC and NUPRC to maintain the reform momentum while strengthening transparency, accountability and institutional independence.

It also called on oil-producing communities, operators, investors, security agencies and other stakeholders to support efforts to increase production and attract long-term capital.

The group cautioned against policy reversals, political interference and unnecessary bureaucracy, arguing that consistency would remain critical to sustaining investor confidence.

The latest figures therefore present both an opportunity and a test for Nigeria’s petroleum sector.

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Higher production and fresh capital could strengthen the industry’s contribution to the economy, but sustained reforms and visible benefits for Nigerians will determine whether the current optimism develops into lasting economic gains.