Indigenous oil and gas operators have reached a historic milestone in Nigeria, now producing more than half of the country’s crude oil output. This achievement underscores the growing strength of local participation in the energy sector following years of international oil company divestments.
Nigeria’s Federal Government announced that indigenous firms now account for over 50% of crude oil production, a feat that was unimaginable a decade ago when international oil companies (IOCs) dominated the upstream sector.
The shift was largely driven by asset sales from IOCs such as Shell, ExxonMobil, and Eni, which opened opportunities for local companies including Seplat Energy, Oando, Waltersmith, and Renaissance Oil. These firms have expanded operations, increased drilling activities, and boosted Nigeria’s daily crude output.
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According to official figures, Nigeria’s production rose from about 1 million barrels per day in 2023 to over 1.7 million barrels per day in 2026, with indigenous operators contributing the majority share.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil):
Confirmed that active drilling rigs surged from 14 to more than 60 in recent years.
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Highlighted that Nigeria attracted over $10 billion in foreign direct investment (FDI), much of it driven by indigenous operators.
Described the development as a “historic transformation” that strengthens Nigeria’s energy independence.
Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas):
Emphasised the role of private capital and innovation in unlocking Nigeria’s gas potential.
Reiterated commitment to the Decade of Gas initiative, aimed at positioning Nigeria as a gas-powered industrial economy.
The commissioning of the Dangote Petroleum Refinery and modular refineries such as Waltersmith and Aradel has expanded downstream processing, reducing reliance on imported fuel.
Indigenous control is expected to drive industrialisation, create jobs, and enhance energy security.
Infrastructure gaps in pipelines, storage, and refining remain obstacles. Regulatory stability and sustained investment will be crucial to maintain momentum.
This milestone signals a new era of local ownership in Nigeria’s oil industry. Sustaining it will require stronger infrastructure, transparent regulation, and continued private-sector investment. Would you like me to expand this into a profile of leading indigenous oil firms or a deep dive on Nigeria’s refining capacity?
