The Federal Government of Nigeria has announced that indigenous oil and gas companies now account for more than 50 per cent of the country's crude oil production. This development is a major shift in ownership and participation in the upstream sector. The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this at the maiden edition of the Petroleum Technology Development Fund (PTDF) Journal Summit 2026 in Abuja.
According to Lokpobiri, the increase in indigenous firms' participation is largely due to major divestment transactions by international oil companies. These transactions have opened up opportunities for indigenous operators to expand their participation in the upstream industry. Nigeria's crude oil production has increased from about one million barrels per day in 2023 to more than 1.7 million barrels per day. The number of active drilling rigs has also risen from about 14 to more than 60.
The Minister of State for Petroleum Resources (Oil) attributed the growth in crude oil production to the divestment transactions. He said significant progress had been made in restructuring the industry. These transactions are creating great opportunities for indigenous operators who now account for more than 50 per cent of Nigerian crude oil production. Lokpobiri described this as a historic milestone for the industry.
However, Lokpobiri stressed that increased crude production must be supported by adequate infrastructure. Efficient transportation and storage systems, expanded refining capacity, and a competitive market capable of delivering value to consumers and investors are necessary. He cited the emergence of the Dangote Petroleum Refinery and the growth of modular refineries as indications of the impact of private-sector investment on the downstream petroleum industry.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also spoke at the summit. He said private capital, technical expertise, and innovation remained critical to unlocking Nigeria's vast gas resources. Ekpo said the Federal Government was committed to creating an enabling environment for private-sector investment across the petroleum value chain. The Petroleum Industry Act had provided a framework for regulatory certainty and institutional governance.
Ekpo listed infrastructure gaps, high financing costs, project development risks, regulatory bottlenecks, and inadequate access to reliable energy infrastructure as constraints to greater private-sector participation. He called for increased investment in indigenous technology, local manufacturing, and skills development to strengthen domestic capacity across the industry. The Decade of Gas initiative was designed to position natural gas as a catalyst for industrialisation, job creation, energy security, and economic diversification.
The Executive Secretary of PTDF, Prof. Shuaibu Aliyu, said the summit was conceived to broaden the role of the Petroleum Technology Development Journal. The summit aims to provide a platform for dialogue, collaboration, and practical solutions to challenges confronting the petroleum industry. PTDF was particularly interested in ensuring that research outputs moved beyond publication to practical application, intellectual property development, and commercialisation.
Key points
- Indigenous oil firms now account for over 50% of Nigeria's crude oil production.
- Nigeria's crude oil production has increased from about one million barrels per day in 2023 to more than 1.7 million barrels per day.
- The Federal Government is committed to creating an enabling environment for private-sector investment across the petroleum value chain.
