Nigeria Records 16-Year Low in Crude Oil Losses as Output Strengthens
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported that Nigeria's oil losses are at a 16-year low
- The commission disclosed that oil theft and vandalism have been tackled to their barest minimum, raising crude production
- It stated that from January to July 2025, total crude oil losses amounted to 2.04 million barrels, averaging 9,600 bpd
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
Nigeria’s upstream oil industry has recorded a breakthrough, with crude oil losses from theft and metering errors dropping to their lowest level in nearly 16 years.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), daily crude oil losses in July 2025 stood at just 9,600 barrels per day (bpd), the lowest since 2009 when the figure hit 8,500 bpd.
Source: Facebook
A Dramatic turnaround
From January to July 2025, total crude oil losses amounted to 2.04 million barrels, averaging 9,600 bpd. This marks a 50.2% reduction compared to the 4.1 million barrels lost in all of 2024.
The improvement is striking when compared to 2021, Nigeria’s worst year for crude losses in more than two decades. That year, the country lost 37.6 million barrels, averaging over 100,000 bpd.
By contrast, the 2.04 million barrels lost in the first seven months of 2025 represent a 94.57% decline, signalling stronger oversight and enforcement in the industry.
“This significant reduction reflects our commitment to eliminating theft and inefficiencies,” said Gbenga Komolafe, Chief Executive of the NUPRC. “Collaboration with security agencies, operators, and communities, alongside regulatory reforms, is paying off.”
Role of the Petroleum Industry Act
The progress has been closely tied to the implementation of the Petroleum Industry Act (PIA) of 2021, which introduced sweeping reforms to improve transparency, accountability, and efficiency in Nigeria’s oil sector.
Losses have been consistently shrinking since the law came into effect:
- 2022: 20.9 million barrels lost (57,200 bpd)
- 2023: 4.3 million barrels lost (11,900 bpd)
- 2024: 4.1 million barrels lost (11,300 bpd)
- 2025: Down further to 9,600 bpd by July
The downward trend underscores the PIA’s impact in stabilising one of Nigeria’s most critical revenue sources.
Two-pronged strategy
The NUPRC has deployed a blend of kinetic and non-kinetic strategies to tackle crude oil theft and pipeline vandalism.
Security Collaboration: Strengthened partnerships with the military, oil operators, and host communities have boosted surveillance of pipelines and oilfields.
Regulatory Reforms: Non-kinetic measures include metering audits for upstream facilities to ensure accurate tracking of production and exports.
New Evacuation Routes: Approval of 37 alternative evacuation routes has made it harder for criminals to intercept crude flows.
Boost for oil Revenues and production
The timing of these gains aligns with a recent surge in Nigeria’s crude oil production.
Data from the Nigerian Upstream Petroleum Regulatory Commission shows output climbed to 1.7 million barrels per day in July 2025, strengthening the country’s fiscal position at a time of growing global oil demand.
Industry analysts say the reduction in theft will directly boost government revenue, attract investment, and improve Nigeria’s reputation as a reliable supplier in the global market.
“The numbers speak for themselves,” said Dr. Aisha Mohammed, an energy analyst in Lagos.
“Nigeria is showing the world that reforms and enforcement can work. Sustaining this progress will depend on continuous vigilance and investment in technology.”
What’s ahead for Nigeria’s oil sector?
For Nigeria, the fall in crude oil losses signals more than improved security; it represents a chance to rebuild trust with investors and oil buyers.
Source: Twitter
As crude oil output rises and losses drop, Nigeria may finally be on track to reclaim its position as Africa’s undisputed oil powerhouse—stronger, leaner, and more efficient than before.
NUPRC revokes the licence of Oritsemeyin Rig
Legit.ng earlier reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked the operating licence of the Oritsemeyin Rig and ordered its immediate shutdown once ongoing well operations are concluded.
The decision was communicated in a letter dated September 11, 2025, to Selective Marine Services Limited (SMSL), the operator of the rig.
The letter was signed by the Commission’s Chief Executive, Engr. Gbenga Komolafe, and later confirmed in an official statement on Friday, September 12, 2025.
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Source: Legit.ng
