Nigeria’s oil industry has recorded its strongest production performance in five years, with crude output rising above 1.8 million barrels per day and drilling activity accelerating as government reforms begin to attract fresh investment into the sector.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd, Engr. Bashir Bayo Ojulari announced the milestones at the 25th NOG Energy Week in Abuja, where they pointed to improving production, stronger operational performance and renewed investor confidence across the petroleum industry.
Lokpobiri said the latest weekly report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria’s crude oil production had exceeded 1.8 million barrels per day, describing the development as evidence that reforms introduced by the Federal Government were beginning to yield results.
He said that although production remained below the country’s long-term target, Nigeria had previously produced as much as 2.5 million barrels per day, expressing confidence that the industry could attain similar levels again.
“We’ve done 2.5 million barrels a day before. So we can do it again. What we need to do is to work together under the right circumstances,” the minister said.
According to him, increased drilling activity has raised the number of active rigs from about 40 in 2023 to more than 60 currently, providing a strong foundation for future production growth.
Lokpobiri said indigenous operators had assumed a more dominant role in Nigeria’s upstream sector following the divestment of onshore assets by international oil companies (IOCs), with local firms now accounting for more than 60 per cent of national crude oil production.
He cited Renaissance Africa Energy Company’s recent offshore drilling campaign and new hydrocarbon discovery as evidence of the growing capacity of indigenous operators to sustain exploration and production activities.
The minister dismissed suggestions that major IOCs had exited Nigeria, explaining that companies such as Shell, ExxonMobil and Eni had repositioned their investments towards deep offshore operations aimed at increasing reserves and production.
He attributed the renewed momentum to reforms undertaken since 2023 to address regulatory bottlenecks, improve security and create a more competitive investment environment.
According to him, Nigeria is witnessing growing interest from investors across the United States, Europe and the Middle East, while the government has begun implementing measures under the Petroleum Industry Act (PIA), including enforcement of the three-month drilling campaign requirement and a review of industry charges to improve competitiveness.
Lokpobiri said the Federal Government had also engaged global consulting firm BWC to benchmark Nigeria’s oil and gas fees against international standards in a bid to reduce multiple levies imposed on operators.
He maintained that global energy discussions had shifted from energy transition to energy mix, arguing that Africa, which contributes only about three per cent of global carbon emissions, should be allowed to develop its hydrocarbon resources while pursuing cleaner energy solutions.
Providing further evidence of the sector’s recovery, Ojulari disclosed that NNPC Ltd recorded average crude oil production of 1.71 million barrels per day, representing the highest sustained production level in five years.
He said gas production also increased to 7.5 billion standard cubic feet per day, driven by the completion of the River Niger crossing on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the commissioning of the ANOH Gas Processing Plant.
According to him, the company achieved an average of 98 per cent operational recovery across its five crude oil export terminals between April 2025 and May 2026, compared with severe disruptions experienced in previous years.
Ojulari said NNPC maintained full compliance with Joint Venture cash call obligations throughout 2025 and into 2026, while signing Gas Sale and Purchase Agreements covering 1.29 billion standard cubic feet per day for LNG feed gas and 750 million standard cubic feet per day for domestic industrial gas supply to DFL FZE and Dangote Refinery.
He said the agreements were expected to unlock more than $20 billion in associated investments, with seven additional commercial transactions currently under negotiation.
The NNPC chief also disclosed that the company resumed full monthly remittances to the Federation Account in July 2025, reinstated monthly operational reporting and hosted its first earnings call as part of measures to strengthen transparency and investor confidence.
He called for stronger collaboration among governments, investors, regulators and operators, saying Africa’s energy future would depend not only on its vast resource base but also on its ability to build strategic partnerships capable of attracting capital, technology and innovation.