Share!
Nigeria is ramping up efforts to strengthen crude oil production, with the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), Bashir Bayo Ojulari, projecting an incremental increase of about 100,000 barrels per day (bpd) in the coming months.
Ojulari disclosed this on the sidelines of the CERAWeek by S&P Global conference in Houston, noting that Nigeria is steadily building the technical and operational capacity required to scale up output.
According to him, Nigeria averaged between 1.6 million and 1.7 million bpd in 2025 and is targeting an average production of 1.8 million bpd in 2026.
The planned 100,000 bpd increase forms part of broader efforts to stabilise output and reinforce the country’s contribution to the global oil market.
Responding to questions on whether Nigeria could help offset potential crude supply disruptions arising from geopolitical tensions in the Middle East, Ojulari stated that while Nigeria may not possess the spare capacity of leading OPEC producers such as Saudi Arabia, it remains positioned to make meaningful contributions.
“We are building that capacity. We are not like Saudi Arabia, but we can contribute,” he said.
Strategic Reforms Underway
Ojulari further revealed that NNPC concluded a comprehensive portfolio review of its operations in 2025 and has commenced phased implementation of reforms in 2026.
The review, he explained, was designed to reposition the national oil company for improved efficiency, commercial discipline, and project execution.
A key priority under the new framework is strengthening execution capacity to ensure projects are delivered within budget and on schedule—an area that has historically constrained performance due to delays and cost overruns.
Industry analysts note that sustained production growth will depend not only on operational efficiency but also on improved security in oil-producing regions, enhanced upstream investment, and regulatory stability.
If successfully implemented, the proposed output expansion could boost foreign exchange earnings, support fiscal revenues, and reinforce investor confidence in Nigeria’s upstream sector at a time of heightened global energy uncertainty.
As Nigeria recalibrates its oil strategy, the coming months will be critical in determining whether the projected production gains translate into measurable economic dividends.
No related posts.
