Nigeria’s Oil Production Output Inches Up on Reforms Strategy

By Naija Enquirer Staff

Nigeria has significantly boosted its crude oil production, achieving between 1.7 million and 1.83 million barrels per day, while the number of active drilling rigs has surged from 31 in January to 50 by July 2025. The resurgence marks a major turnaround in exploration and development, driven by reforms championed by President Bola Tinubu’s administration.

Reforms Driving Growth

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed the milestone during a keynote address at the Africa Energy Week in Cape Town, speaking on behalf of President Tinubu. He highlighted the visible impact of targeted reforms on upstream activity.

Central to this progress is the Project One Million Barrels initiative, launched in October 2024 to restore and expand Nigeria’s oil production capacity after years of underinvestment, oil theft, and operational challenges.

Impact of the Petroleum Industry Act

Lokpobiri credited the Petroleum Industry Act (PIA) as a transformative piece of legislation that has created a transparent and investor-friendly framework. The Act has positioned Nigeria as “open for business,” attracting both local and foreign capital.

Investment Boost from Asset Divestments

The Minister noted that recent asset divestments by international oil companies (IOCs) have spurred more than $5.5 billion in final investment decisions (FIDs). These are expected to add around 200,000 barrels per day to Nigeria’s national production.

“These are not just transfers of assets; they are transfers of confidence, capability, and ownership,” Lokpobiri said, underscoring renewed investor faith in Nigeria’s hydrocarbon sector.

A Sector in Recovery

Nigeria’s oil and gas industry is undergoing a recovery phase, powered by structural reforms, increased investment, and proactive government policies. The combination of stronger regulation and local participation is helping unlock the nation’s vast oil potential while restoring international confidence in the sector.