Indigenous oil and gas operators have taken over Nigeria's oil output, accounting for more than 50 per cent of the country's crude oil production. This significant shift in ownership and participation in the country's upstream petroleum industry was announced by the Federal Government. The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this at the maiden Petroleum Technology Development Fund (PTDF) Journal Summit 2026 in Abuja.
According to Lokpobiri, the development is largely attributed to major divestment transactions by international oil companies, which have created opportunities for Nigerian operators to expand their presence in the upstream sector. 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 growing role of indigenous producers could have important implications for Nigeria's oil economy. Greater participation by Nigerian companies could strengthen local ownership of petroleum assets and create opportunities for domestic companies to build technical expertise, expand employment and retain a larger share of value generated within the industry. This shift may also lead to increased economic benefits for the country.
However, Lokpobiri cautioned that higher 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. The minister pointed to the Dangote Petroleum Refinery and the growing number of modular refineries as evidence of the impact of private-sector investment on the downstream petroleum sector.
Attention is also shifting to Nigeria's gas sector, which the Federal Government sees as an important driver of industrialisation and economic diversification. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said private capital, technical expertise and innovation would be critical to unlocking the country's gas resources. The Federal Government is committed to creating an enabling environment for private-sector investment across the petroleum value chain.
Ekpo identified infrastructure gaps, high financing costs, project development risks, regulatory bottlenecks and inadequate access to reliable energy infrastructure as major constraints to private-sector participation. He called for increased investment in indigenous technology, local manufacturing and skills development, areas that could determine whether Nigeria captures more value from its petroleum resources.
The Executive Secretary of PTDF, Prof. Shuaibu Aliyu, said the summit was designed to expand the Petroleum Technology Development Journal beyond research publication into a platform for dialogue, collaboration and practical solutions for the petroleum industry. The Managing Director of Waltersmith Petroman Oil Limited, Oladapo Filani, noted that PTDF had sponsored over 15,639 scholars and supported over 50,000 research projects.
Key points
- Indigenous oil operators 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 sees the gas sector as an important driver of industrialisation and economic diversification.
