Oil-and-Gas Sector's Contribution To Nigeria's GDP Less Than 10%- NUPRC

New Crude Oil Evacuation Routes Will Curb Oil Theft, Boost Production – CEGA

July 27, 2025
1 min read

The Centre for Energy Governance and Accountability (CEGA) has commended the federal government for approving 37 new crude oil evacuation routes, saying the move will help to significantly reduce oil theft, improve transparency, and boost Nigeria’s oil production.

The group’s commendation followed the NUPRC Chief Executive Gbenga Komolafe’s announcement during the 2025 Nigeria Oil and Gas (NOG) Energy Week in Abuja that the federal government has approved the new crude evacuation routes.

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The new routes aim to disrupt illegal bunkering networks and secure crude transportation. Oil theft has cost Nigeria billions annually, with losses exacerbated by inefficient infrastructure and security gaps.

NUPRC Chief Executive Gbenga Komolafe emphasized that the routes, implemented with military and security agency collaboration, will enhance surveillance and accountability.

CEGA, in a statement released on Sunday, signed by its Executive Director, Dr Kelvin Sotonye Williams, described the move as “a major milestone” in combating decades of crude oil theft.

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“The approval of 37 new evacuation routes is not just a bureaucratic tweak—it’s a strategic intervention in a sector that loses billions annually to theft and inefficiencies. This development signals a firm commitment to plugging leakages and restoring investor confidence,” Williams stated.

He said the move aligns with NUPRC’s One Million Barrels Initiative, targeting an increase from 1.7 million barrels per day (bpd) to 2.5 million bpd by 2026.

He said the results of the initiative include revived dormant fields and faster project approvals.

Williams stated that since the Petroleum Industry Act (PIA) was passed in 2021, the sector has seen increased stability, attracting $16 billion in investment under President Tinubu’s administration.

While emphasising the importance of investing in oil production, the group warned that failing to do so could affect global and regional stability.

Nigeria’s oil reserves are a strategic asset that must be optimally managed, not underutilised,” the CEGA executive director said..

The group also emphasized that the NUPRC HostComply initiative is a crucial instrument for fostering peace in the Niger Delta that monitors oil companies’ adherence to host community obligations under the PIA.

The group further stated that it was encouraged by NUPRC’s incorporation of environmental accountability into its upstream policies, such as its support for Nigeria’s 2060 net-zero target.

All parties involved, including state-owned and private operators, were urged by CEGA to support the commission’s mission and pledge to conduct business in an ethical and climate-conscious manner.

“With Komolafe at the helm, the NUPRC is not content with the status quo. They are thinking beyond survival; they are working towards transformation,” Williams said.

The group urged the federal government to continue supporting the reforms by protecting the regulatory space from political interference and ensuring that executive orders, such as those governing local content and cost-efficiency, are consistently enforced.

 

 

 

 

victor ezeja
Correspondent at  |  + posts

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

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