By Emmanuella Opara | November 4th 2026
KEY POINTS
- NNPC Limited says oil sector reforms have increased Nigeria’s crude production from 1.2 million to 1.8 million barrels per day.
- The company is targeting two million barrels per day by 2027.
- More than 400 compressed natural gas conversion centres have been established nationwide.
- NNPC targets gas production of 10 billion standard cubic feet per day by 2027 and 12 billion by 2030.
- The Ajaokuta-Kaduna-Kano gas pipeline is expected to begin supplying Abuja before the end of 2026.
MAIN STORY
Nigeria’s crude oil production has increased by 600,000 barrels per day to 1.8 million barrels per day, following reforms in the oil and gas industry, according to the Nigerian National Petroleum Company Limited.
The state-owned energy company attributed the improvement to the implementation of the Petroleum Industry Act, better investment conditions and stronger collaboration with industry partners.
The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed this on Tuesday during an energy session titled ‘Nigeria’s Reform Agenda: Competing for Energy Capital’ at the 2026 Abu Dhabi International Petroleum Exhibition and Conference in the United Arab Emirates.
According to the company, the increase from approximately 1.2 million barrels per day represents progress in efforts to reverse years of declining production and improve Nigeria’s competitiveness in attracting international investment.
Ojulari said the company was targeting crude oil production of two million barrels per day by 2027, with priorities including protecting existing production, maintaining infrastructure and accelerating ongoing projects.
He described the current production level as an important milestone but said sustaining the improvement would depend on the effective execution of planned projects and rehabilitation of critical infrastructure.
Nigeria has struggled to consistently meet its Organisation of Petroleum Exporting Countries production quota amid persistent challenges, including crude oil theft, pipeline vandalism, underinvestment and operational disruptions.
The country’s production recovery is particularly important to its fiscal and foreign exchange position, given the significant contribution of crude oil exports to government revenue and foreign exchange earnings.
Ojulari said NNPC’s management and board remained committed to delivering the projections contained in the mandate given to the company by President Bola Tinubu.
He added that an assessment of the company’s assets and infrastructure had helped management identify its strengths, understand its portfolio and determine areas requiring urgent intervention.
Beyond crude oil production, the NNPC chief highlighted developments in the domestic gas market, particularly following the removal of petrol subsidies.
He said the government had introduced a major compressed natural gas initiative to reduce dependence on petrol and diesel while encouraging the use of locally available gas.
According to him, more than 400 CNG conversion centres have been established across the country, while over 1,000 trucks used for transporting petroleum products have been converted to operate on natural gas.
The initiative is expected to expand alternative fuel options and reduce the cost of transporting petroleum products.
On gas infrastructure, Ojulari disclosed that the Obiafu-Obrikom-Oben gas pipeline was completed in August 2026.
He also said the Ajaokuta-Kaduna-Kano gas pipeline was expected to begin delivering gas to Abuja before the end of the year.
The project is expected to provide additional gas supplies for electricity generation, data centres and industrial activities.
The developments form part of the Federal Government’s broader strategy to expand domestic gas utilisation, improve energy supply and strengthen Nigeria’s position in regional and international gas markets.
NNPC is also targeting national gas production of 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030.
THE ISSUES
The reported increase in crude oil production represents progress for Nigeria’s energy sector after years of output challenges that weakened government revenue and limited the country’s ability to benefit fully from its petroleum resources.
However, increasing production is only one part of the challenge. Sustaining output will require consistent investment in infrastructure, improved security around oil facilities and the successful completion of ongoing projects.
The two-million-barrel-per-day target also places pressure on the industry to demonstrate that the reported recovery can be maintained rather than becoming a temporary improvement.
Gas development presents another opportunity. Expanding domestic utilisation could support electricity generation, industrial production and transportation while reducing reliance on imported energy products.
However, the success of the country’s gas ambitions will depend on infrastructure delivery, investment and the ability of the market to absorb increased supply.
WHAT’S BEING SAID
“The figure of 1.8 million barrels per day is a stage in a journey towards our objective. We are concentrating on the basics, which are maintaining our infrastructure, protecting base operations and executing the projects that will take production higher,” Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, said.
“Our track record will be judged by what is done and not by what is said,” Ojulari said.
WHAT’S NEXT
NNPC is expected to focus on sustaining crude oil production at current levels while pursuing its two-million-barrel-per-day target by 2027.
The company will also continue work on critical infrastructure, including the Ajaokuta-Kaduna-Kano gas pipeline, which is expected to begin supplying Abuja before the end of 2026.
Its longer-term gas production targets stand at 10 billion standard cubic feet per day by 2027 and 12 billion by 2030.
BOTTOM LINE
Nigeria’s reported 600,000-barrel-per-day production increase offers a measure of recovery for an oil industry that has struggled with declining output and investment challenges. The real test for NNPC, however, will be sustaining the gains, meeting its production targets and translating ongoing reforms into reliable energy infrastructure and stronger economic returns.
