By Daniel Kudayah
Indigenous oil and gas companies now account for more than 50 per cent of Nigeria’s crude oil production, the Federal Government has said.Indigenous oil and gas companies now account for more than 50 per cent of Nigeria’s crude oil production, the Federal Government has said.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, disclosed this on Wednesday at the first Petroleum Technology Development Fund, PTDF, Journal Summit 2026 in Abuja.
The minister was represented by his Technical Adviser, Engr. Emmanuel Sinime.
Lokpobiri said the increase followed the sale of some oil assets by international oil companies, which had created more opportunities for Nigerian companies to operate in the upstream sector.
He said Nigeria’s crude oil production had increased from about one million barrels per day in 2023 to more than 1.7 million barrels per day.
He also said the number of active drilling rigs had increased from about 14 to more than 60, while Nigeria had attracted more than $10 billion in foreign direct investment in recent years.
He said, “These transactions are creating great opportunities for indigenous operators who now account for more than 50 per cent of Nigerian crude oil production, a historic milestone for our industry.”
However, Lokpobiri said the increase in oil production must be supported by better infrastructure, transportation and storage facilities, more refining capacity and a competitive market.
He mentioned the Dangote Petroleum Refinery and modular refineries such as Waltersmith and Aradel as examples of private-sector investment in the downstream oil sector.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said private investment, technical skills and new ideas were important to the development of Nigeria’s gas sector.
Ekpo said the Federal Government was working to create an environment that would encourage more private investment across the oil and gas industry.
He said the Petroleum Industry Act had provided a framework for better regulation and management of the sector.
According to him, the Decade of Gas programme is aimed at using natural gas to support industrial growth, create jobs, improve energy supply and reduce the country’s dependence on other sources of energy.
Ekpo said more investment was needed in gas processing, pipelines, distribution, liquefied petroleum gas, compressed natural gas and gas-based industries.
He said the government could not achieve the target alone and would need the support of private investors, financial institutions and technology companies.
He identified poor infrastructure, high financing costs, project risks and regulatory challenges as some of the problems affecting private investment in the sector.
He also called for more investment in local technology, manufacturing and skills development.
Earlier, the Executive Secretary of PTDF, Prof. Shuaibu Aliyu, said the PTDF Journal Summit was created to promote discussion and find practical solutions to problems facing the oil and gas industry.
He said the growing involvement of private investors in refining, gas processing, storage, logistics and petroleum product distribution could create jobs, boost economic growth and improve local skills.
Aliyu said PTDF was also working to ensure that research carried out by scholars was used to solve real problems and support new businesses.
He called for stronger cooperation between oil and gas companies and research institutions.
In his keynote address, the Managing Director of Waltersmith Petroman Oil Limited, Mr Oladapo Filani, said PTDF had sponsored more than 15,639 scholars and supported over 50,000 research projects and several partnerships with industry and higher institutions.
Filani said the challenge was no longer just training Nigerians but also creating opportunities for them to use their skills in the country.
He identified poor infrastructure, lack of technical skills, funding problems and uncertainty over investments as some of the major challenges facing the oil and gas sector.
He also said problems with gas gathering, pipelines, storage facilities and transportation continued to affect the industry.
Filani said pipeline vandalism, oil theft and damage to pipelines were also affecting the steady supply of crude oil and gas.
He, however, said investments by the Federal Government and NNPC Limited in projects such as the Ajaokuta-Kaduna-Kano, Oben-Oben and OB3 pipelines were important steps towards improving Nigeria’s gas infrastructure.
