The sudden resignation of Nigeria’s top petroleum regulators shortly after the launch of one of the country’s largest oil block auctions in years has raised fresh concerns within the energy sector.
Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Farouk Ahmed, head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have both stepped down from their positions.
Their exits followed public criticism from Africa’s richest man, Aliko Dangote, owner of the Dangote Petroleum Refinery, who accused Ahmed of permitting cut-price fuel imports that undermine local refining capacity.
Dangote reportedly submitted a formal petition against Ahmed to a leading anti-corruption agency on Wednesday, intensifying scrutiny of regulatory oversight in the downstream sector.
Despite the resignations, President Bola Ahmed Tinubu has nominated two replacements, with the Nigerian Senate expected to screen and confirm the nominees in the coming weeks.
The NUPRC recently launched its 2025 licensing round, offering 50 oil and gas blocks across onshore, shallow water, frontier, and deepwater terrains.
The auction is projected to attract about $10 billion in investment, add an estimated two billion barrels to Nigeria’s reserves, and raise crude oil production by roughly 400,000 barrels per day.
The licensing process is being conducted through a new digital and transparent framework introduced under the Petroleum Industry Act (PIA), aimed at attracting both local and international investors while strengthening Nigeria’s energy security.
Nigeria has struggled in recent years to meet its OPEC+ production quota, largely due to prolonged underinvestment, crude oil theft, and widespread pipeline vandalism.
Africa’s largest oil producer recorded average crude output of about 1.5 million barrels per day in 2024, significantly below its 1.8 million barrels per day target.
In 2022, the Nigerian National Petroleum Company Limited (NNPC) disclosed that up to 95 per cent of crude production at the Bonny terminal was lost to theft, largely driven by illegal pipeline connections.
However, sustained government interventions have helped reverse the trend, with crude oil production rising from about 1.1 million barrels per day in 2022 to 1.83 million barrels per day in October 2025.
The rebound has enabled Nigeria to reclaim its position among Africa’s leading oil producers, supported by new legislation, fiscal incentives, and intensified efforts to curb theft and vandalism.
Meanwhile, major international energy companies, including Shell Plc, Chevron Corp., TotalEnergies SE, and Seplat Energy Plc, have increased gas production in Nigeria to support electricity generation for industries and households.
Average daily electricity generation reached about 5,700 megawatts in the final quarter of 2025, representing nearly a 40 per cent increase compared to output levels recorded two years earlier.