Nigeria’s oil industry is experiencing a significant turnaround, with the country’s pipelines and terminals reaching near 100% capacity due to enhanced security measures
According to Bashir Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), the improved security situation has boosted crude oil production, with the company working towards achieving 2.5 million barrels per day.
A Collaborative Effort
The success in combating crude oil theft can be attributed to the collaborative efforts between the NNPCL, security agencies, and intelligence units. This partnership has not only reduced pipeline vandalism but also increased investor confidence, contributing to higher national revenue. The National Security Adviser, Nuhu Ribadu, revealed that a special committee has been working to bring offenders to justice, with over 100 suspects prosecuted and 15 recently sent to prison.
A New Production Target
The federal government has set a new crude oil production target of 2.5 million barrels per day for the NNPCL by December 2025. This target exceeds the initial budget goal of 2 million barrels per day set by President Bola Tinubu. To achieve this goal, the government is working to address long-standing challenges such as pipeline vandalism and oil theft in the Niger Delta.¹
Challenges and Opportunities
Despite the progress made, crude oil theft remains a significant challenge, with international syndicates exploiting security gaps in the state, national, and continental security architecture. However, with the improved security situation, Nigeria’s oil production is poised for growth, and the country is set to benefit from increased revenue and economic stability.
Key Players in Nigeria’s Oil Production
- Top Oil-Producing States:
- Akwa Ibom: 504,000 barrels per day
- Delta: 346,000 barrels per day
- Rivers: 344,000 barrels per day
- Bayelsa: 290,000 barrels per day
- Ondo: 60,000 barrels per day
As Nigeria continues to ramp up its oil production, the country is expected to play a significant role in the global energy market. With its vast oil reserves and growing production capacity, Nigeria is well-positioned to drive economic growth and development.²
