The federal government has stated indigenous oil and gas businesses now account for more than 50 per cent of Nigeria’s crude oil production, describing the accomplishment as a dramatic shift in ownership and engagement in the upstream industry.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil) revealed this at the debut edition of the Petroleum Technology Development Fund (PTDF) Journal Summit 2026 in Abuja, Saturday Independent reports.
Represented by his Technical Adviser, Engr Lokpobiri, Emmanuel Sinime said the growth was mainly due to the massive divestment deals by foreign oil corporations, which had paved the way for indigenous operators to play a larger role in the upstream sector.
He said crude oil output in Nigeria has climbed from roughly one million barrels per day in 2023 to above 1.7 million barrels per day while active drilling rigs rose from about 14 to over 60.
He added that the country had garnered over $10 billion in foreign direct investment in recent years.
“There has also been significant progress in the restructuring of the industry with the completion of major divestment transactions involving international oil companies. These transactions are offering excellent prospects for indigenous operators who now account for over 50 per cent of Nigerian crude oil output, a historic milestone for our industry,” Lokpobiri said.
But the minister insisted that higher crude output must be supported by suitable infrastructure, efficient transportation and storage systems, additional refining capacity and a competitive market capable of delivering value to consumers and investors.
He noted the creation of the Dangote Petroleum Refinery and the growth of modular refineries as Waltersmith and Aradel, as pointers to the impact of private sector investment on the downstream petroleum industry.
Also speaking at the summit, the Minister of State for Petroleum potential (Gas), Ekperikpe Ekpo emphasised that private finance, technical expertise and creativity were vital to unlocking Nigeria’s massive gas potential. Shop African Art
The federal government was dedicated to providing an enabling environment for private sector investment across the petroleum value chain, Ekpo said, adding that the Petroleum Industry Act had given a framework for regulatory stability and institutional governance.
He said the Decade of Gas project was aimed at positioning natural gas as a driver for industrialisation, job development, energy security and economic diversification.
To achieve the target, there will be a need for ongoing investment in gas processing, transportation and distribution infrastructure, as well as liquefied petroleum gas, compressed natural gas, petrochemicals and other gas-based sectors’, he said.
“This is not something the federal government can do alone. We must further strengthen partnership with private investors, financial institutions, technology providers and other stakeholders to raise the resources and knowledge required to deliver these projects,” Ekpo said.
He cited gaps in infrastructure, high cost of finance, project development risk, regulatory hurdles and lack of access to reliable electricity infrastructure as obstacles to increasing participation by the private sector.
Ekpo also advocated for more investment in indigenous technologies, local manufacturing and skills development to enhance local capacity across the industry.
The PTDF Executive Secretary, Prof. Shuaibu Aliyu had earlier said the summit was put together to expand the role of the Petroleum Technology Development Journal beyond research publication by providing a platform for dialogue, collaboration and practical solutions to challenges facing the petroleum industry.
Aliyu said the increase in the involvement of private investors in refining, gas processing, logistics, storage and distribution of petroleum products created potential for economic growth, employment creation, technology development and the development of local capability.
He said PTDF was particularly keen in ensuring that research results flowed from publications to practical application, intellectual property development and monetisation.
The PTDF boss emphasised the need for more industry and research partnerships to tackle the difficulties of funding, infrastructure, regulatory stability, access to technology, market efficiency and technical capability.
In his keynote address, Mr Oladapo Filani, the Managing Director of Waltersmith Petroman Oil Limited, said PTDF had sponsored over 15,639 scholars in different programs and higher institutions, and had assisted over 50,000 research projects and many collaborations between industry and higher institutions.
Filani said the challenge for the business was not just about developing competent Nigerians, but keeping the skills and creating opportunities for experts to utilise their experience in solving domestic challenges. Buy African Art
He also mentioned infrastructure shortages, gaps in human-capital and technical capabilities, funding limits, and economic viability and investment uncertainty as key difficulties facing the midstream and downstream industries.
Constraints in gas gathering and processing, pipelines, storage and terminals, refining support infrastructure and product logistics continued to impair the efficiency and investment economics of the business, he added.
Filani also blamed supply disruptions on pipeline vandalism, oil theft and pipeline integrity problems, while limited gas processing and evacuation infrastructure continued to hamper gas monetisation.
But, he stated, investments by the federal government and NNPC Limited in vital infrastructure such as the Ajaokuta-Kaduna-Kano, Oben-Oben and OB3 pipeline projects were steps toward bolstering Nigeria’s gas infrastructure.
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