The Nigerian National Petroleum Company Limited has announced that reforms in the oil and gas industry have led to a significant increase in Nigeria's crude oil production. The country's daily output has risen by 600,000 barrels, from 1.2 million barrels to 1.8 million barrels. This development is attributed to the impact of the Petroleum Industry Act, improved investment conditions, and stronger collaboration with industry partners.
The Group Chief Executive Officer of NNPC Limited, Bashir Ojulari, disclosed this information during an energy talk at the 2026 Abu Dhabi International Petroleum Exhibition and Conference in the United Arab Emirates. He stated that the production increase reflects the country's efforts to attract international investment into the sector and position Nigeria to compete more effectively for global energy capital.
According to Ojulari, the company is targeting crude oil production of two million barrels per day by 2027. To achieve this goal, the company will focus on protecting existing production, maintaining infrastructure, and accelerating new projects. He emphasized that sustaining the current production level of 1.8 million barrels per day will depend on the successful execution of ongoing projects and the rehabilitation of critical infrastructure.
The NNPC boss attributed the improvement in production to the implementation of the Petroleum Industry Act, 2021, better investment decisions, and closer working relationships between the company and its partners. He also highlighted the company's commitment to delivering on its projections, as mandated by President Bola Tinubu. A baseline assessment of NNPC's assets and infrastructure has enabled the management to understand the company's portfolio and identify areas requiring urgent attention.
On the domestic energy market, Ojulari mentioned that the removal of the petrol subsidy has been accompanied by a major compressed natural gas initiative. The goal is to reduce dependence on petrol and diesel while promoting the use of locally available gas. Over 400 CNG conversion centres have been established across the country, and more than 1,000 trucks used in transporting petroleum products have been converted to run on natural gas.
The NNPC chief also provided updates on major gas infrastructure projects, including the completion of the Obiafu-Obrikom-Oben gas pipeline in August 2026. Additionally, the Ajaokuta-Kaduna-Kano gas pipeline is expected to begin delivering gas to Abuja before the end of the year. These projects aim to expand domestic gas utilization, improve electricity supply, and position Nigeria as a major supplier to regional and international markets.
Ojulari outlined NNPC's production ambitions, targeting national gas output of 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030. He emphasized that achieving these targets will require the simultaneous development of domestic consumption and export markets. The company is also working on regional gas export ambitions, including the proposed Nigeria-Morocco Gas Pipeline and the Trans-Saharan Gas Pipeline.
Key points
- Nigeria's crude oil production has increased by 600,000 barrels per day to 1.8 million barrels daily due to reforms in the oil and gas industry.
- The Nigerian National Petroleum Company Limited is targeting crude oil production of two million barrels per day by 2027.
- The company has established over 400 CNG conversion centres and converted over 1,000 trucks to run on natural gas as part of efforts to reduce dependence on petrol and diesel.
