Gas
NNPC attributes oil output growth to industry reforms
Nigerian crude production has expanded to 1.8 million barrels daily following the implementation of the Petroleum Industry Act, according to state oil company officials.
Key points
- National crude output grew from 1.2 million to 1.8 million barrels per day.
- NNPC targets a production milestone of two million barrels daily by 2027.
- Commercial agreements totaling twenty billion dollars have been secured for upstream assets.
What happened
According to reports from Punch and Vanguard, the national oil company announced the production increase during an energy forum in the United Arab Emirates. Bashir Ojulari, the chief executive of NNPC, stated that regulatory changes enacted under the Petroleum Industry Act of 2021 have helped draw fresh capital and improve asset management.
The state firm noted that output climbed by 600,000 barrels daily from earlier levels of approximately 1.2 million barrels. Leadership aims to reach two million barrels daily by 2027 by safeguarding existing operations, maintaining infrastructure, and advancing new ventures. Industry representatives emphasized that ongoing collaboration with international partners remains vital for sustaining these operational gains.
Investment and infrastructure
BusinessDay reported that international partnerships are driving the sector expansion. Upstream initiatives involving major energy firms have secured roughly twenty billion dollars in finalized commercial deals, encompassing prominent offshore and onshore ventures. Furthermore, domestic gas infrastructure is advancing, with specific pipelines finished in August and additional routes slated to supply the capital before year-end.
Compressed natural gas adoption is also expanding across the country. Officials noted that hundreds of conversion centres have been established alongside thousands of retrofitted transport trucks to mitigate the removal of petroleum subsidies.
Why it matters
Fuel exports constituted 85.9 percent of merchandise exports in 2025, according to World Bank figures compiled by the Centre for Energy Investment and Innovation, contrasting sharply with a global average of 9.5 percent. With Brent crude trading at 123.1 dollars per barrel in late October 2026, higher production volumes directly impact foreign exchange earnings and macroeconomic stability in Nigeria.
While national electricity access stood at 62.5 percent in 2024 according to World Bank data, expanded domestic gas pipelines are critical for supplying power plants and industrial hubs. Enhancing local energy availability remains essential for broader economic development alongside export-oriented petroleum growth.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
72.9% of electricity in Nigeria came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
