The Federal Government has disclosed that indigenous oil and gas operators now account for more than 50 percent of Nigeria’s crude oil production following major divestment transactions by international oil companies.
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, who was represented by his Technical Adviser, Engr. Emmanuel Sinime, said the divestment of assets by international oil companies had created opportunities for indigenous operators to expand their participation in the upstream sector.
“These transactions are creating great opportunities for indigenous operators who now account for more than 50 percent of Nigerian crude oil production, a historic milestone for our industry,” Lokpobiri said.
He said Nigeria’s crude oil production had also increased from about one million barrels per day in 2023 to more than 1.7 million barrels per day, while the number of active drilling rigs rose from about 14 to more than 60.
According to him, Nigeria has attracted more than $10 billion in foreign direct investment in recent years, alongside increased activity across the upstream sector.
Lokpobiri, however, said higher crude production would need to be supported by adequate infrastructure, efficient transportation and storage systems, expanded refining capacity, and a competitive market.
He identified the Dangote Petroleum Refinery and growing modular refining capacity, including the Waltersmith and Aradel refineries, as examples of increased private-sector investment in the downstream sector.
At the summit, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said private capital, technical expertise, and innovation remained critical to unlocking Nigeria’s gas resources.
Ekpo said the Federal Government was focused on creating an environment that would support private investment across the petroleum value chain, adding that the Petroleum Industry Act had provided a framework for regulatory certainty and institutional governance.
He said the Decade of Gas initiative was aimed at using natural gas to support industrialization, job creation, energy security, and economic diversification.
Ekpo identified infrastructure gaps, high financing costs, project development risks, regulatory bottlenecks, and inadequate access to reliable energy infrastructure as some of the constraints affecting private-sector participation in the gas sector.
He called for increased investment in gas processing, transportation, and distribution infrastructure, as well as LPG, CNG, petrochemicals, and other gas-based industries.