FG deepens oil and gas sector reforms, reaffirms Nigeria’s readiness for global energy investments

The Federal Government has reaffirmed its commitment to sustaining reforms across Nigeria’s petroleum industry, stating that the country’s oil and gas sector is experiencing renewed growth driven by bold policy decisions, improved regulatory certainty, strategic investments and stronger collaboration between government and industry.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and his gas counterpart, Ekperikpe Ekpo, disclosed this at the ongoing 25th Nigeria Oil and Gas (NOG) Energy Week 2026 in Abuja.

Speaking on developments in the oil sector, Lokpobiri said reforms initiated under the administration of President Bola Ahmed Tinubu had restored investor confidence and repositioned Nigeria’s upstream industry for sustainable growth after years of declining investments.

He said crude oil production had increased from about one million barrels per day in 2023 to over 1.8 million barrels per day, while active drilling rigs had risen from 14 to more than 60, showing renewed exploration and production activities.

He stressed that government remained committed to increasing production beyond current levels through sustained investment, improved security, regulatory stability and stronger collaboration across the industry.

According to Lokpobiri, the rising global demand for Nigerian crude further underscores the need to increase production capacity. He attributed the sector’s renewed momentum to the implementation of the Petroleum Industry Act (PIA), the Tinubu administration’s reforms and decisive actions to resolve long-standing industry challenges.

He also observed that the global energy conversation is shifting from an exclusive focus on energy transition to a more balanced energy mix, as growing concerns over energy security continue to reinforce the strategic importance of oil and gas. He maintained that Nigeria would continue to responsibly harness its hydrocarbon resources to drive industrialisation, economic growth and national development while contributing to a balanced and sustainable global energy future.

He further highlighted the successful completion of divestment transactions involving Shell, ExxonMobil and ENI, noting that indigenous operators now account for over 60 per cent of Nigeria’s daily crude oil production, while the International Oil Companies have redirected investments to deep offshore operations, creating new opportunities for reserve growth and increased production.

To improve the ease of doing business, the minister disclosed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in collaboration with the Independent Petroleum Producers Group (IPPG), had engaged PricewaterhouseCoopers (PwC) to undertake a global benchmarking study aimed at simplifying the industry’s multiple taxes, levies and statutory charges.

Speaking on Nigeria’s gas agenda, Ekpo said the Federal Government is leveraging the country’s over 215 trillion cubic feet of proven gas reserves to drive industrialisation, strengthen energy security and diversify the economy under the Decade of Gas Initiative.

He said the PIA and subsequent Executive Orders issued by President Tinubu had enhanced regulatory certainty, introduced targeted fiscal incentives, streamlined contracting processes and renewed investor confidence, resulting in increased investments across the gas value chain.

Ekpo highlighted major infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Pipeline, OB3 Gas Pipeline, expansion of gas processing facilities and the NLNG Train 7 Project, which will increase Nigeria’s LNG production capacity from 22 million to 30 million tonnes per annum.

He also underscored the importance of the Presidential Compressed Natural Gas (CNG) Initiative and the National Clean Cooking Programme in expanding domestic gas utilisation, reducing transportation costs, creating jobs and improving access to cleaner energy.

While restating Nigeria’s commitment to regional energy integration through the Trans-Saharan Gas Pipeline, Africa-Atlantic Gas Pipeline, Nigeria–Equatorial Guinea Gas Pipeline and the continued expansion of the West African Gas Pipeline network, he added that Nigeria’s assumption of the presidency of the 2026 Gas Exporting Countries Forum (GECF) and its admission as an Association Country of the International Energy Agency (IEA) underscore growing international confidence in the country’s energy reforms and leadership.

The Special Adviser to the President on Energy, Mrs. Olu Verheijen, said the Federal Government remains firmly committed to achieving crude oil production of 3 million barrels per day and 10 billion standard cubic feet of gas per day by the end of the decade.

She noted that the administration’s reform agenda had continued to deliver measurable results, with Nigeria attracting over 10 billion dollars in long-awaited Final Investment Decisions (FIDs) within the last three years.

The presidential aide further disclosed that the country’s crude oil and condensate production had increased by more than 400,000 barrels per day, while onshore production had reached its strongest level in nearly two decades.

She added that Nigeria has emerged as a leading destination for upstream investments in Africa, with its share of upstream FIDs rising significantly, while the country’s external reserves have surpassed 50 billion dollars, reflecting growing investor confidence in the economy.