Reforms lift Nigeria’s oil output by 600,000bpd- NNPC

Samuel Mobolaji

Nigeria’s crude oil production has increased by 600,000 barrels per day (bpd) to 1.8 million bpd following reforms in the petroleum industry, the Nigerian National Petroleum Company Limited (NNPC) has said.

The company attributed the improvement to the implementation of the Petroleum Industry Act (PIA), improved investment conditions and stronger collaboration with international oil companies and other industry partners.

The Group Chief Executive Officer of NNPC Limited, Bashir Ojulari, disclosed this on Tuesday during an energy session titled ‘Nigeria’s Reform Agenda: Competing for Energy Capital’ at the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in the United Arab Emirates.

According to a statement issued by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the production increase represents progress in the country’s efforts to restore crude oil output and attract foreign investment into the upstream sector.

Ojulari said the company was targeting national crude oil production of two million bpd by 2027, stressing that achieving the target would depend on protecting existing production, maintaining infrastructure and accelerating ongoing projects.

He described the current output of 1.8 million bpd as a milestone but warned that sustaining the improvement would require consistent investment and effective execution of critical 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 said.

Nigeria has struggled with declining crude oil production over the years due to oil theft, pipeline vandalism, underinvestment and operational disruptions, limiting its ability to consistently meet its Organisation of the Petroleum Exporting Countries (OPEC) production quota.

Ojulari said NNPC’s management had undertaken a baseline assessment of the company’s assets and infrastructure to identify operational weaknesses, determine investment priorities and improve performance.

He added that the management and board remained committed to delivering on the mandate given to the company by President Bola Tinubu.

“Our track record will be judged by what is done and not by what is said,” he stated.

On domestic energy supply, the NNPC chief said the removal of the petrol subsidy had been accompanied by an expanded compressed natural gas (CNG) programme to encourage alternative fuel adoption and reduce dependence on petrol and diesel.

He disclosed that more than 400 CNG conversion centres had been established nationwide, while over 1,000 trucks used for transporting petroleum products had been converted to run on natural gas.

Ojulari also announced progress on major gas infrastructure projects, saying the Obiafu-Obrikom-Oben gas pipeline was completed in August 2026.

He added that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline was expected to begin delivering gas to Abuja before the end of the year, providing additional supplies for electricity generation, data centres and industrial activities.

On gas production, he said NNPC was targeting 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030.

He stressed that achieving the targets would require simultaneous development of domestic consumption and export markets to ensure increased production translated into economic gains.

The NNPC boss also highlighted progress on the proposed Nigeria-Morocco Gas Pipeline and Trans-Saharan Gas Pipeline, saying participating countries had made progress in securing the necessary agreements for the projects.

On foreign investment, Ojulari identified TotalEnergies’ Ubeta project, Shell’s Bonga South-West development and Eni’s Zabazaba project as evidence of renewed investor interest in Nigeria’s oil and gas industry.

He disclosed that commercial agreements covering approximately $20 billion in investments had been concluded, adding that the company was strengthening relationships with international energy companies and investors.

According to him, NNPC was also engaging the United Arab Emirates’ national oil company, ADNOC, and Chinese investors interested in Nigeria’s refineries.

He said the company was equally collaborating with international oilfield service providers to strengthen technical and operational capacity for executing new projects.

Ojulari reaffirmed NNPC’s commitment to transparency and accountability, citing the company’s consecutive earnings calls as part of efforts to improve engagement with investors and other stakeholders.

The 2026 ADIPEC, hosted by ADNOC under the patronage of UAE President Sheikh Mohamed bin Zayed Al Nahyan, attracted more than 239,000 participants from over 170 countries.