Indigenous operators now produce 50% of Nigeria’s oil — FG

By Obas Esiedesa, Abuja ABUJA — Indigenous oil and gas operators now account for more than 50 per cent of Nigeria’s crude oil production, the Federal Government has said. The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this on Wednesday at the maiden Petroleum Technology Development Fund (PTDF) Journal Summit 2026 in Abuja. The minister, represented by his Technical Adviser, Engr.

Emmanuel Sinime, attributed the development to major divestment transactions by international oil companies, which he said had created opportunities for indigenous operators to expand their participation in the upstream sector. Lokpobiri said Nigeria’s crude oil production had risen from about one million barrels per day in 2023 to more than 1.7 million barrels per day. He added that the number of active drilling rigs had increased from about 14 to more than 60, while Nigeria had attracted over $10 billion in foreign direct investment in recent years.

“Significant progress has also been made in restructuring the industry by completing major divestment transactions involving international oil companies. “These transactions are creating great opportunities for indigenous operators who now account for more than 50 per cent of Nigerian crude oil production, a historic milestone for our industry,” he said. However, Lokpobiri said the increase in crude production must be matched by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity and a competitive market capable of delivering value to consumers and investors.

He identified the emergence of the Dangote Petroleum Refinery and the growing number of modular refineries, including Waltersmith and Aradel, as evidence of the impact of private-sector investment in the downstream sector. Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said private capital, technical expertise and innovation were critical to unlocking Nigeria’s gas resources. Ekpo said the Federal Government was committed to creating an enabling environment for private-sector investment across the petroleum value chain, adding that the Petroleum Industry Act had provided an important framework for regulatory certainty and institutional governance.

He said the Decade of Gas initiative was aimed at transforming Nigeria into a gas-powered industrial economy,… He added that active drilling rigs had increased from about 14 to more than 60, while the country had attracted over $10 billion in foreign direct investment in recent years. However, Lokpobiri said increased crude production must be matched by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity and a competitive market capable of delivering value to consumers and investors.

He identified the Dangote Petroleum Refinery and the growing number of modular refineries, including Waltersmith and Aradel, as evidence of the impact of private-sector investment in the downstream sector.