ABUJA — Structural reforms in Nigeria’s energy sector have added 600,000 barrels per day (bpd) to national output, driving total crude oil production from 1.2 million to 1.8 million bpd, according to state oil firm NNPC Limited.
Speaking at the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday, NNPC Group Chief Executive Officer Bayo Ojulari stated that the supply surge positions Africa’s largest oil producer to better attract global energy capital.
Ojulari attributed the growth to operational changes under the Petroleum Industry Act (PIA 2021), improved security around pipeline infrastructure, and enhanced joint-venture collaboration.
He confirmed that NNPC is working toward a target of 2 million bpd by 2027 by protecting existing base production, sustaining infrastructure maintenance, and accelerating new field developments.
“The figure of 1.8 million barrels per day is a stage in a journey,” Ojulari said during an executive panel session. “We are concentrating on the basics—maintaining our infrastructure, protecting base operations, and executing the projects that will take production higher.”
Gas expansion and infrastructure projects
Addressing domestic market shifts, Ojulari noted that the removal of Nigeria’s petrol subsidy has been paired with an aggressive rollout of Compressed Natural Gas (CNG) initiatives, establishing over 400 vehicle conversion centres and transitioning more than 1,000 heavy haulage trucks to gas power.
Major gas transit infrastructure has also advanced:
- Obiafu-Obrikom-Oben (OB3) pipeline: Completed in August 2026 to enhance domestic gas transmission across the southern industrial belt.
- Ajaokuta-Kaduna-Kano (AKK) pipeline: Scheduled to deliver natural gas to Abuja by the end of the year to supply power stations, industrial hubs, and data centres.
Regionally, NNPC expects to achieve national gas production of 10 billion standard cubic feet per day (Bcf/d) by 2027 and 12 Bcf/d by 2030. Key cross-border projects—including the Nigeria-Morocco Gas Pipeline and the Trans-Saharan Gas Pipeline involving Algeria and Niger—have secured alignment and intergovernmental agreements among participating nations.
Commercial agreements and international partnerships
The state energy firm reported that commercial agreements representing roughly $20bn (£15.4bn) in international investment have been finalized, highlighting major offshore developments including TotalEnergies’ Ubeta, Shell’s Bonga South-West, and Eni’s Zabazaba fields.
Ojulari added that NNPC Limited is expanding strategic partnerships with the Abu Dhabi National Oil Company (ADNOC) alongside Chinese investors to support refining operations and boost local service capacity.
Reaffirming a commitment to corporate governance and investor confidence, the company pointed to its recent introduction of regular quarterly earnings calls to maintain institutional transparency.
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