Nigeria’s oil and gas sector is undergoing a dramatic transformation, with billions of dollars now pouring into projects that promise to reshape the country’s energy future. 

At the center of this momentum is President Bola Tinubu’s reform agenda, which has been hailed by industry leaders as the driving force behind renewed global confidence in Nigeria’s upstream petroleum industry.

Investor Confidence Reignited

Speaking at the Africa Oil Week in Accra, Ghana, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, revealed how bold policy actions anchored in the Petroleum Industry Act (PIA) 2021 and strengthened by recent executive orders have triggered a surge of investor interest. 

The reforms, he said, have not only reshaped the regulatory environment but also positioned Nigeria as one of the world’s most attractive destinations for energy investment.

In 2025 alone, the Commission has approved 28 new Field Development Plans. These projects are expected to unlock 1.4 billion barrels of oil and 5.4 trillion cubic feet of gas. 

If realized, they could boost Nigeria’s output by nearly 600,000 barrels of oil per day and over two billion standard cubic feet of gas daily. Capital commitments from these projects already total about $18.2 billion, clear evidence that investor confidence has returned.

Big Projects, Big Money

Among the landmark projects now underway is the $5 billion Bonga North deep offshore development, alongside the $500 million Ubeta Gas Project. Other ventures, such as the HI NAG Development, Ima Gas, Owowo Deep Offshore, and Preowei Fields, are also nearing final investment decisions.

Since Tinubu assumed office, five major acquisition deals valued at over $5 billion have been sealed, opening the door for indigenous players to scale their presence in the sector. For a long time, smaller Nigerian firms struggled to compete with international oil companies. Today, however, policy changes are giving them a stronger foothold.

Petroleum Industry Act as a Game-Changer

The Petroleum Industry Act has been described as the “catalyst” for these sweeping changes. Komolafe emphasized that the law ushered in new governance frameworks, clearer fiscal regimes, and stronger institutional alignment. 

The NUPRC, restructured under the PIA, has since rolled out 24 regulatory frameworks, 19 of which have been fully gazetted creating transparency and eliminating long-standing bottlenecks.

To further improve investor confidence, licensing rounds have been made more accessible, signature bonuses adjusted, and barriers to entry removed. 

This is why recent bid rounds, including the 2022 Mini-Bid Round and the 2024 Licensing Round, attracted strong participation, with 27 out of 31 available blocks successfully taken up.

Visible Impact on the Ground

The results of these reforms are already being seen. Nigeria’s rig count, a critical measure of drilling activity has risen sharply, from just eight in 2021 to 43 in September 2025. 

The steady increase shows not only heightened investor interest but also the tangible revival of exploration and production efforts.

Industry watchers say the scale of investment now committed to Nigeria is unprecedented in recent years. With the government targeting production capacity of over three million barrels per day, the oil and gas sector is once again becoming a cornerstone of national revenue, energy security, and industrial growth.

Balancing Growth and Energy Transition

Beyond the numbers, Nigeria’s strategy under Tinubu is also about balance. While acknowledging global debates around climate change and energy transition, the government is taking a pragmatic approach: leveraging its vast hydrocarbon wealth to drive industrialization and poverty reduction, while steadily preparing for a gradual shift to renewables.

This balance between economic necessity and sustainability is what many experts say gives Nigeria a competitive edge in Africa’s evolving energy landscape.

Recognition and Transparency

The Nigerian Upstream Petroleum Regulatory Commission itself has gained recognition for its role in this transformation. 

The Public Space Tracker, a West African governance watchdog, recently named the NUPRC as Nigeria’s most transparent government agency. Under Komolafe’s leadership, the Commission has been praised for openness, innovation, and integrity in managing upstream petroleum resources.

A New Era for Nigeria’s Energy Sector

As billions in capital commitments pour in, Tinubu’s reforms are not just reshaping Nigeria’s oil and gas industry, they are redefining how the world sees the country as an energy hub. 

With stronger governance, renewed global partnerships, and an ambitious roadmap, Nigeria is positioning itself at the center of Africa’s energy future.