CFEAD: NNPC, NUPRC reforms restoring oil sector confidence, $20bn gas deals show progress
By Aboki Forex —
The Citizens Forum for Energy Accountability and Development (CFEAD) has commended NNPC Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for restoring confidence and attracting investment into the oil and gas industry. The group said recent announcements by NNPC Group CEO Bayo Ojulari and NUPRC Commission Chief Executive Oritsemeyiwa Eyesan show that sustained reforms and stronger operational discipline are delivering measurable results.
Over $20bn gas deals, production gains
In a statement signed by its Executive Director, Patriot Unazi Gideon, CFEAD highlighted more than $20 billion in gas sale and purchase agreements secured by NNPC over the past year. It described the deals as a major vote of confidence in Nigeria's energy market.
The agreements 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.
CFEAD also praised NNPC for reducing operating costs by $3.4 billion through contract restructuring and optimisation. This came alongside a six per cent rise in crude oil production and an 8.1 per cent increase in gas output. Crude production has risen to about 1.71 million barrels per day, its highest level in five years.
The group said the increase could have major implications for government revenue, economic stability, infrastructure financing and job creation. It also pointed to NNPC Exploration and Production Limited's record production of 365,000 barrels per day and an average 98 per cent recovery rate across NNPC's five crude oil export terminals between April 2025 and May 2026.
Deep offshore incentives and Bonga South
CFEAD equally commended NUPRC for policies aimed at unlocking investment in deep offshore oil and gas projects. It welcomed the Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, which NUPRC said could unlock approximately $50 billion in investments.
The order could increase crude oil and condensate production by an additional one million barrels per day over the coming years. CFEAD said the incentive could revive major offshore projects that have remained delayed because of huge capital requirements and lengthy investment cycles.
The group identified the $10 billion Bonga South project, expected to commence production in 2027, as an example of investment opportunities emerging from a more predictable regulatory environment.
Reforms must benefit ordinary Nigerians
Despite applauding the figures, CFEAD said the ultimate measure of success should be the impact of the reforms on ordinary Nigerians. It said higher oil and gas production should translate into stronger public revenue, more jobs, greater energy security, increased industrial activity and improved economic stability.
The group urged NNPC and NUPRC to sustain the reform momentum while prioritising 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.
CFEAD warned against a return to policy reversals, political interference and unnecessary bureaucracy, stressing that consistency would be crucial to preserving investor confidence. The organisation said the latest developments provide an opportunity for Nigeria to build a stronger petroleum industry capable of supporting local businesses, developing technical expertise, creating employment and generating broader economic prosperity.
For the naira and Nigerian businesses, the group's position is clear: sustained production growth and investment in the oil sector must translate into stronger public revenue and economic stability. That, CFEAD argues, is the only way the reforms will deliver lasting value beyond corporate balance sheets.