The Nigerian Upstream Petroleum Regulatory Commission has initiated discussions with Bank of America to attract new investments and increase oil production amid renewed efforts to stabilize the country’s crude output. Commission Chief Executive Gbenga Komolafe met with Chuba Ezenwa, Managing Director and Head of Investment Banking for Sub-Saharan Africa at Bank of America, at the NUPRC headquarters in Abuja on Tuesday.
Komolafe explained that the engagement aligns with the Petroleum Industry Act 2021, particularly Section 6(h), which mandates the Commission to promote an enabling environment for investment in upstream petroleum operations and the development of Nigerian content in the industry. He noted that although Nigeria’s oil production has increased over the past year, funding remains a major challenge for companies seeking to scale up operations.
Nigeria’s oil production had fallen below 1.3 million barrels per day in 2022 due to massive crude theft, pipeline vandalism, and underinvestment, but has gradually recovered following regulatory reforms and improved security enforcement. The Federal Government is intensifying efforts to raise crude output to 1.8 million barrels per day in line with OPEC’s production quota and restore investor confidence in the sector. The government also targets attracting up to $20 billion in fresh oil and gas investments by 2030.
Komolafe emphasized Nigeria’s rich hydrocarbon endowment and the need to optimize production, stating that funding is critical to achieving success. Ezenwa commended Komolafe’s leadership, describing the increase in oil production as a testament to his vision and reforms. The Bank of America representative expressed encouragement with the reforms and stated that the institution will continue to provide support to Nigeria’s upstream sector.
Sources: businessday.ng, punchng.com