Nigeria’s state oil company, NNPC Ltd, is now operating as a commercially driven entity without reliance on federal budgetary allocations, as oil and gas production levels continue to rise, its Group Chief Executive Officer Bashir Ojulari said on Sunday.
Ojulari spoke after briefing President Bola Tinubu, outlining the impact of structural reforms introduced under the Petroleum Industry Act (PIA), which formally repositioned NNPC from a state-funded corporation into a profit-oriented limited liability company.
According to Ojulari, the reforms have strengthened operational discipline, improved cost management, and enabled the company to fund its activities independently while expanding production capacity.
He said NNPC is no longer dependent on monthly federal allocations, marking a significant shift in Nigeria’s oil and gas governance framework.
The NNPC chief disclosed that crude oil production is expected to rise to 1.8 million barrels per day in 2026, up from approximately 1.7 million barrels per day this year.
Gas production is also projected to continue increasing, supported by new infrastructure and improved operational efficiency across the value chain.
Ojulari linked the production outlook to progress on key infrastructure projects, including the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) gas pipeline.
He said the company has completed welding of the pipeline’s main line, including the critical River Niger crossing, a longstanding bottleneck that had delayed the project for years.
The milestone is expected to enable pipeline connection early next year, expanding domestic gas supply, particularly to northern Nigeria.
The AKK pipeline forms part of NNPC’s broader gas monetisation strategy, aimed at supporting power generation, fertiliser production, and gas-based industries while reducing dependence on imported fuels. Increased domestic gas utilisation is also expected to strengthen revenue stability and support NNPC’s commercial sustainability.
Ojulari said President Tinubu reaffirmed the administration’s target of attracting $30 billion in new investments by 2030 and raising Nigeria’s oil production to 2 million barrels per day by 2027.
He noted that the PIA framework has improved investor confidence by clarifying fiscal terms, governance structures, and regulatory oversight within the energy sector.
Industry analysts view NNPC’s ability to operate without federal allocations as a critical test of the PIA’s effectiveness. Sustained production growth, coupled with improved transparency and commercial discipline, is expected to play a central role in boosting government revenues, stabilising foreign exchange inflows, and supporting broader economic growth.
With oil and gas output on an upward trajectory and major infrastructure projects nearing completion, NNPC’s transition to a self-financing, profit-driven national oil company marks a turning point in Nigeria’s long-running effort to reform its energy sector and unlock long-term value from its hydrocarbon resources.