President Bola Tinubu has announced that Nigeria has made significant strides in reducing its dependence on oil revenue. Speaking at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, he emphasized the government's commitment to diversifying the economy and attracting investment into various sectors. Tinubu, represented by Vice President Kashim Shettima, highlighted that the government's diversification strategy focuses on agriculture, manufacturing, digital and creative industries.
The President noted that while oil and gas would continue to provide energy, foreign exchange, and revenue, the government would use its resources to support broader economic activity rather than rely solely on crude oil for growth. This shift in strategy comes as the administration continues to pursue reforms aimed at increasing oil production, improving revenue remittances, and attracting fresh investment into the petroleum sector. In February, Tinubu issued an executive order directing oil and gas revenues to be paid directly into the Federation Account.
Despite efforts to reduce dependence on oil, the sector remains crucial to Nigeria's finances. However, it has faced challenges such as fluctuations in crude production and oil prices, as well as security and operational problems. According to Premium Times, oil and gas revenue remittances fell significantly below projections in the first two months of 2026, with actual remittances standing at N137.41 billion against a budgeted N937.10 billion. Tinubu attributed improved security and cooperation among stakeholders to the stabilization of production.
The President also highlighted that the government's efforts have helped attract investors who previously left Nigeria, with the country ranking first among Africa's leading destinations for upstream investment for two consecutive years. The Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri, stated that Nigeria currently produces about 1.7 million barrels of crude oil per day and has over 37 billion barrels of oil reserves. Lokpobiri emphasized the need for more investment, additional licensing rounds, and increased exploration to unlock the country's petroleum resources.
The NUPRC has reported increased investment activity in the upstream sector, with over $57 billion in Field Development Plans approved since 2024. Twenty-two major offshore projects are expected to come on stream between 2026 and 2030, estimated to attract between $30 billion and $50 billion in investment. Nigeria's oil and condensate reserves stood at 37.01 billion barrels as of January 2026, while gas reserves increased to 215.19 trillion cubic feet, according to NUPRC data.
Tinubu declared the period ahead as a decade of gas, emphasizing its centrality to the government's energy strategy. He outlined plans to expand gas supply for power, industry, and clean cooking, reduce flaring and methane emissions, and grow renewable energy. The President also noted that a stronger upstream industry could create jobs for Nigerian engineers, fabricators, and oilfield service companies. He urged the NUPRC to maintain clear regulatory processes and work with other government agencies to reduce overlapping requirements.
The President emphasized that legislation alone could not guarantee investment, citing concerns raised by investors about high costs, lengthy contracting processes, and uncertainty around fiscal terms for complex projects. He urged operators benefiting from government incentives to meet their obligations on work programs, local content, environmental protection, and host communities. Tinubu also stressed the importance of the NUPRC remaining independent and accountable in its regulatory decisions.
Key points
- President Tinubu says Nigeria has significantly reduced its reliance on oil revenue.
- The government aims to diversify the economy, focusing on agriculture, manufacturing, digital and creative industries.
- Nigeria's oil and gas sector will continue to provide energy, foreign exchange, and revenue.
