Nigeria's oil production has been on a downward trend, with output falling to 1.31 million barrels per day in February 2026, its lowest reading in 17 months. This decline is attributed to scheduled maintenance idling a 225,000-bpd Shell facility. Experts point to the need for the country to bridge the output gap and drive it toward its elusive 1.84 million bpd national target before year-end.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has responded to this challenge by compressing well-permit approvals from several weeks to just a few hours. This move is aimed at capitalising on global crude prices trading near $100 a barrel. The regulator is fast-tracking permits for well re-entry, barging, and crude evacuation, the three operational bottlenecks that have historically throttled Nigeria's ability to convert proven reserves into export revenue.
The acceleration of permit approvals is expected to benefit Nigerian-owned independents rather than the multinationals that long dominated the basin. Seplat Energy Plc, a Nigerian oil and gas company, has successfully restored 49 idle wells to production and plans to bring 50 more back online this year.
NUPRC's decision to fast-track permits for well re-entry, barging, and crude evacuation is a welcome move, but it remains to be seen if it will be enough to drive Nigeria's oil production back to its national target. The regulator's pivot from bureaucratic oversight to production advocacy is a step in the right direction, but it must be accompanied by a clear plan to address the underlying issues that have held back the country's oil sector for years. The success of this strategy will depend on the ability of Nigerian-owned independents like Seplat Energy Plc to effectively utilise the new permits and bring dormant wells back online. The country's oil windfall rerun is a rare opportunity, and it is crucial that Nigeria seizes it to drive economic growth and development.
