In response to Nigeria’s ambitious goal of achieving 2.5 million barrels per day by 2027, the Federal Government (FG) yesterday called on International Oil Companies (IOCs) doing business there to take decisive action to increase crude oil production.
In 2025, Nigeria’s average daily oil output was approximately 1.6 million barrels, which was much less than the budget goal of 2.06 million barrels.
Speaking at the conclusion of a panel discussion at the current 2026 Nigerian International Energy Summit, Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stated that the government had established an atmosphere that allowed oil businesses to function efficiently.
Lokpobiri emphasized that the success of upstream operators is crucial to the petroleum industry’s performance, pointing out that the Nigerian economy is still heavily reliant on the sector’s foreign exchange profits.
“I have always maintained that the success of the upstream is largely dependent on the success of the oil and gas industry,” he said. Everything is interconnected, from upstream to midstream and downstream. There won’t be any crude oil to distribute or refine if we don’t produce any. As a result, the upstream industry’s success determines the petroleum sector’s success.
“I am especially pleased with the group of dedicated professionals I have had the honor of working with. It is crucial for the government to make it clear that indigenous farmers and other entrepreneurs are treated equally.
“You are all businesses that operate under the same laws in Nigeria. There is no distinction made between domestic and international businesses under the Petroleum Industry Act (PIA). You are subject to the same rules even if you may work at various scales. For the benefit of all Nigerians, we thus anticipate that we will keep cooperating, strengthening the upstream sector, and working together.
In order to fully realize the industry’s potential, the minister promised that the Federal Government would continue to support it through reforms, tax breaks, and regulatory changes.
Through reforms, tax breaks, and regulatory adjustments, we have offered a wide range of incentives to help the sector reach its full potential. Now, what are you going to do in exchange? Much has been provided by the government. The moment has come for industry participants to pay back by making investments, creating, and delivering outcomes,” he stated.
