Nigeria’s crude oil production has rebounded to around 1.8 million barrels per day, one of the country’s strongest output levels in recent years.
The recovery follows major improvements in pipeline security, operational infrastructure, and renewed investor confidence across the upstream oil and gas industry.
Recent data from the Ministry of Petroleum Resources indicate that national output, including condensates, has maintained steady growth after years of disruptions caused by theft, vandalism, and underinvestment.
Officials say the combined effect of security interventions, regulatory reforms, and strategic partnerships with host communities has significantly improved crude delivery to export terminals.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, attributed the rebound to a more stable operating environment supported by stronger coordination among security agencies and oil companies.
He noted that incidents of crude theft and sabotage, which previously discouraged production, have reduced sharply, enabling operators to ramp up activity.
Industry analysts confirm that pipeline integrity has improved considerably across the Niger Delta, allowing for near-total recovery of crude injected into the system. This progress has also translated into higher export volumes and reduced losses for producers.
Nigeria’s rig count — a key measure of upstream activity — has climbed significantly this year, reflecting renewed capital investment in drilling and field development. The rise in rig deployment underscores the momentum within the sector following years of stagnation and project delays.
The federal government’s policy direction under President Bola Tinubu has further strengthened investor sentiment. A series of executive orders issued earlier this year introduced fiscal incentives aimed at reducing production costs, improving contract efficiency, and attracting new upstream investments. These measures are part of a broader strategy to restore production to above two million barrels per day in the short term.
Analysts say that while global oil prices remain volatile, Nigeria’s improved performance is a critical boost to fiscal and foreign exchange stability. Higher output volumes are expected to enhance government revenues and provide additional support to the Central Bank’s efforts to stabilise the naira.
The Petroleum Industry Act (PIA) continues to play a central role in providing regulatory clarity and operational transparency.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has strengthened oversight and data reporting systems, restoring credibility to production figures and ensuring compliance with the new framework.
In addition to international oil companies, indigenous producers are driving a significant share of the country’s output growth. Several local firms have expanded operations after acquiring divested assets from multinational operators, demonstrating stronger technical capability and financial resilience. Their contribution has deepened domestic participation and increased overall output, positioning Nigeria for long-term sustainability in the upstream segment.
Despite the recent gains, challenges remain in cost management, infrastructure expansion, and global competitiveness.
Nigeria’s production costs remain above the international average, though the government has outlined plans to narrow the gap through technology adoption and efficiency improvements.
With output now stabilising near 1.8 million barrels per day, industry stakeholders expect continued growth through 2025 as new projects come onstream.
The government maintains that with sustained investment and regulatory consistency, Nigeria can exceed two million barrels per day and reinforce its leadership as Africa’s largest crude producer.