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Nigeria has struggled to consistently meet its Organisation of Petroleum Exporting Countries’ production quota in recent years, despite crude oil remaining the country’s major source of foreign exchange earnings.
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The Nigerian National Petroleum Company Limited has attributed a 600,000-barrel-per-day increase in Nigeria’s crude oil production to ongoing reforms in the petroleum industry, saying the country’s output has risen from approximately 1.2 million barrels to 1.8 million barrels daily.
The state-owned oil company said the improvement reflected the impact of the Petroleum Industry Act, improved investment conditions and stronger collaboration with industry partners, positioning Nigeria to compete more effectively for international energy investments.
The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed this on Tuesday during an energy talk titled, ‘Nigeria’s Reform Agenda: Competing for Energy Capital,’ at the 2026 Abu Dhabi International Petroleum Exhibition and Conference in the United Arab Emirates.
A statement on the proceedings was issued by NNPC’s Chief Corporate Communications Officer, Andy Odeh, on Tuesday.
According to the statement, the production increase represents significant progress in the country’s efforts to revive its oil and gas industry after years of declining output caused by crude oil theft, pipeline vandalism, underinvestment and operational challenges.
Ojulari said NNPC was targeting crude oil production of two million barrels per day by 2027, noting that the company was prioritising the protection of existing production facilities, maintenance of critical infrastructure and accelerated execution of new projects.
He described the current production level of 1.8 million barrels per day as an important milestone but cautioned that sustaining the improvement would require consistent investment and effective implementation of ongoing projects.
“The figure of 1.8 million barrels per day is a stage in a journey towards our objective. We are concentrating on the basics, which are maintaining our infrastructure, protecting base operations and executing the projects that will take production higher,” he stated.
Nigeria has struggled to consistently meet its Organisation of Petroleum Exporting Countries’ production quota in recent years, despite crude oil remaining the country’s major source of foreign exchange earnings.
The decline in production has been attributed to persistent crude oil theft, pipeline sabotage, ageing infrastructure, inadequate investment and disruptions in oil-producing communities.
The latest increase, according to NNPC, demonstrates the progress made through policy reforms and improved cooperation among stakeholders in the industry.
Ojulari specifically identified the Petroleum Industry Act, enacted in 2021, as one of the major factors supporting the improvement in production and creating a more favourable environment for investment.
He also said better investment decisions and closer working relationships between NNPC and its industry partners had contributed to the gains recorded in the sector.
The NNPC chief executive added that the company’s management and board remained committed to delivering on the projections contained in the mandate given to it by President Bola Tinubu.
According to him, a baseline assessment of NNPC’s assets and infrastructure had enabled the management to understand its portfolio, identify areas of strength and determine facilities requiring urgent attention.
He maintained that the company’s performance would ultimately be measured by its ability to translate announced reforms and production targets into tangible results.
“Our track record will be judged by what is done and not by what is said,” Ojulari stated.
Beyond crude oil production, the NNPC boss highlighted the company’s efforts to expand domestic energy alternatives following the removal of the Federal Government’s petrol subsidy.
He said the government had accompanied the subsidy removal with a major compressed natural gas initiative designed to reduce the country’s dependence on petrol and diesel while encouraging the utilisation of locally available natural gas.
Ojulari disclosed that more than 400 compressed natural gas conversion centres had been established across the country, while over 1,000 trucks involved in transporting petroleum products had been converted to run on natural gas.
He said the initiative was part of broader efforts to expand alternative fuel options, reduce transportation costs and improve the efficiency of petroleum product distribution following the removal of the subsidy.
The development is expected to support the government’s efforts to promote cleaner energy alternatives and reduce the financial burden associated with conventional fuels.
On gas infrastructure, Ojulari highlighted progress on major projects designed to improve domestic gas supply and support industrial development.
He disclosed that the Obiafu-Obrikom-Oben gas pipeline was completed in August 2026, describing the development as an important step towards strengthening the country’s gas transportation network.
He further said the Ajaokuta-Kaduna-Kano gas pipeline was expected to begin delivering gas to Abuja before the end of the year.
According to him, the project would provide additional gas supplies for electricity generation, data centres and industrial activities, while supporting the Federal Government’s ambition to expand the country’s domestic gas market.
The Ajaokuta-Kaduna-Kano pipeline is considered a major component of Nigeria’s gas development strategy, particularly efforts to connect northern parts of the country to the national gas supply network.
Its completion and commencement of gas delivery are expected to create opportunities for industries, businesses and power generation facilities that depend on reliable energy supplies.
Nigeria has continued to position natural gas as a major component of its energy transition strategy, with the government seeking to increase domestic utilisation while maintaining the country’s relevance in the international energy market.
Ojulari said NNPC was targeting national gas production of 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030.
The targets, he explained, were part of the company’s broader ambition to strengthen Nigeria’s position as a major gas-producing nation and attract investments into the sector.
The gas expansion agenda is also expected to support electricity generation, industrialisation and the development of other gas-based industries, particularly as Nigeria seeks to address its longstanding energy supply challenges.
However, achieving the production projections will depend on sustained investment, effective infrastructure maintenance, security of oil and gas facilities and the timely completion of major projects.
The latest announcement comes as Nigeria intensifies efforts to attract international investors into its petroleum industry amid growing competition for global energy capital.
By highlighting improvements in crude oil production, regulatory reforms and ongoing gas infrastructure development, NNPC said the country was positioning itself as a more competitive destination for investors seeking opportunities in the global energy market.
The company maintained that sustaining the current production gains and achieving its 2027 targets would require continued collaboration with industry partners and consistent implementation of reforms.
