In a strategic effort to significantly boost Nigeria’s crude oil output in the coming year, President Bola Tinubu has unveiled the ‘1MMBOPD’ Initiative, aimed at increasing production by 1 million barrels per day by tapping into dormant oil assets and optimizing existing facilities. This announcement was made during an event in Abuja that coincided with the third anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

International oil companies, indigenous producers, banks, and service providers have expressed their support for the federal government’s initiative, which is themed “Transformation, Innovation & Excellence.” President Tinubu, represented by Secretary to the Government of the Federation Senator George Akume, emphasized that his administration is committed to diversifying the economy away from total reliance on fossil fuels while maximizing revenue from the country’s hydrocarbon resources.

“The oil and gas industry has long been the backbone of Nigeria’s economy,” Tinubu stated, underlining his government’s focus on economic diversification through the sector. “We are not only maximizing revenue from our natural resources, but we are also committed to decarbonization.” He noted that the initiative aims to create jobs, reduce poverty, and contribute to national GDP growth.

The president praised recent improvements in oil production, which has now reached 1.6 million barrels per day, and described the ‘Project 1 million bpd’ as a vital step to enhance the nation’s energy security and economic vitality. According to Tinubu, this collaborative initiative will require commitments from producers, service providers, and financiers to meet the set targets.

“There will be challenges along the way, including technical issues and regulatory hurdles,” he acknowledged, “but we believe through collective efforts, we can overcome these challenges and achieve our goals.”

NUPRC Chief Executive Gbenga Komolafe highlighted the Commission’s progress over the past three years, despite global pressures for energy transition. He emphasized recent developments in regulations and the rise in oil and gas reserves.

At the event, Komolafe also confirmed the approval of the $1.28 billion Seplat-Mobil divestment transaction, as well as TotalEnergies’ deal with Telema Energies. However, the proposed divestment of Shell’s assets to Renaissance Africa Energy was rejected, reflecting the complexity of regulatory processes.

Tony Elumelu, Chairman of Heirs Holdings and UBA, spoke on the urgency for revitalizing Nigeria’s oil production, which has declined from over 2 million barrels per day to below 1.5 million. He pointed out infrastructure decay, security issues, and regulatory uncertainties as contributing factors and stressed the need for comprehensive strategies beyond merely increasing production.

Elumelu underscored that the ‘Project 1MMBOPD’ is essential for unlocking Nigeria’s developmental potential, advocating for infrastructure modernization, security enhancements, and investment attraction to sustain growth. “The initiative must also focus on gas utilization as part of our energy strategy,” he noted.

Reflecting on his company’s experience, Elumelu shared that after taking charge of OML-17, Heirs Energies doubled its production within 100 days but faced challenges such as crude theft that required collaboration with the Nigerian National Petroleum Company (NNPC) to secure operations.

Mele Kyari, Group CEO of NNPC, called for actionable steps to renew the industry and emphasized the importance of developing a competitive environment for oil production. He outlined ongoing efforts to rejuvenate the contracting process and attract investors back to Nigeria.

At the event, State Ministers Lokpobiri and Ekperikpe assured industry players of the government’s commitment to clearing existing obstacles and successfully achieving the ambitious target of increasing production by an additional million barrels per day, with broad support from major oil producers and financial institutions.