Nigeria Seeks Increased Investment in Oil Production from Bank of America

Strategic Insights -

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is making efforts to attract investments and boost oil production in the country, turning to the Bank of America for increased investment. The regulator's CEO, Gbenga Komolafe, met with the managing director and head of investment banking for sub-Saharan Africa at the bank, Chuba Ezenwa, to discuss potential areas of alignment and funding for the oil sector. Nigeria is richly endowed with hydrocarbons but faces a challenge in optimizing production due to limited funding.

Key Takeaways:

  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is seeking increased investment in oil production to boost the country's oil output.
  • The regulator is looking to Bank of America for potential areas of alignment and funding for the oil sector.
  • Nigeria's oil output rebounded to 1.6 million barrels per day (bpd) in September, 3.1 per cent lower than the previous month's level, after production plunged below one million bpd in August 2022.
  • Funding remains a challenge for companies seeking to scale up oil production in Nigeria.
  • The minister of state for petroleum resources (oil), Heineken Lokpobiri, has stated that Nigeria's oil industry is struggling due to the underperformance of the upstream sector.
  • The Petroleum Industry Act 2021 requires the commission to promote an enabling environment for investments in the upstream petroleum operations and development of Nigerian content in the petroleum industry.

Statistics:

  • Nigeria's oil output rebounded to 1.6 million barrels per day (bpd) in September.
  • Production for September was 3.1 per cent lower than the previous month's level.
  • Nigeria's oil output plunged below one million bpd in August 2022, the weakest level in 32 years.
  • Funding remains a challenge for oil production companies in Nigeria.
  • Nigeria's oil sector is struggling due to the underperformance of the upstream sector.

Sources:

  • "Nigeria is richly endowed with hydrocarbons, and we seek to optimise production. But funding is critical to our success. So, we are looking for areas of alignment with the Bank of America," Mr Komolafe said.
  • Eniola Akinkuotu, the regulator's spokesperson.
  • Premium Times. 2025. "NNPC Limited unveils plans to revamp existing downstream assets."
  • AllAfrica Global Media (allAfrica.com).
  • Petroleum Industry Act 2021. Section 6(h).