The Federal Government has called on International Oil Companies (IOCs) operating in Nigeria to move beyond rhetoric and implement tangible measures to significantly increase crude oil production, as the country targets an ambitious 2.5 million barrels per day (mbpd) by 2027.
Nigeria’s average daily oil output in 2025 hovered around 1.6 mbpd—well below the budgeted benchmark of 2.06 mbpd—highlighting persistent challenges in the upstream sector despite reforms under the Petroleum Industry Act (PIA).
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, delivered the charge at the closing of a panel session during the 2026 Nigerian International Energy Summit in Abuja.
Lokpobiri emphasized that the government has already created a conducive operating environment through legislative reforms, tax incentives, and regulatory adjustments.
He underscored the critical linkage between upstream performance and the entire petroleum value chain, stating:
“I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.”
The minister reiterated the government’s commitment to non-discriminatory treatment of all operators:
“There is no discrimination between indigenous producers and other operators. You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations.”
Lokpobiri acknowledged the collaborative spirit within the industry and expressed appreciation for the professionalism of stakeholders, while stressing mutual accountability:
“Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”
He pointed out that the government has already provided substantial support:
“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot. Now is the time for industry players to reciprocate by investing, producing and delivering results.”
The minister warned that Nigeria’s upstream success or failure would have ripple effects across Africa, impacting midstream and downstream segments continent-wide.
“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” Lokpobiri declared.
The renewed push for higher production comes amid ongoing efforts to stabilize foreign exchange earnings, which remain heavily reliant on oil exports, and to reverse years of underperformance in the sector due to theft, vandalism, aging infrastructure, and investment hesitancy.
Related developments in the sector include the continued shutdown of government-owned refineries due to massive losses and recent court rulings affecting marginal field operations.
