The Federal Government has urged International Oil Companies (IOCs) operating in Nigeria to take urgent steps to increase crude oil production, in line with the country’s ambitious goal of reaching 2.5 million barrels per day by 2027.
Nigeria’s daily oil output averaged about 1.6 million barrels per day in 2025, falling short of the budget benchmark of 2.06 million barrels per day.
Speaking at the closing session of the 2026 Nigerian International Energy Summit, Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, highlighted that the government has created an enabling environment for oil operators to perform efficiently.
“The success of the petroleum sector begins with the success of the upstream. From upstream to midstream and downstream, everything is interconnected. If crude is not produced, there will be nothing to refine or distribute,” Lokpobiri said.
He stressed that all operators, whether indigenous or foreign, are governed by the same laws under the Petroleum Industry Act (PIA) and called for collaboration to strengthen the upstream sector.
The minister further pledged continued government support through reforms, tax incentives, and regulatory adjustments aimed at unlocking the sector’s full potential. “We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs, and regulatory changes. Now is the time for industry players to reciprocate by investing, producing, and delivering results,” he said.
Lokpobiri also noted that Nigeria’s success in upstream operations would have positive ripple effects across Africa, while failure could negatively affect the continent’s midstream and downstream sectors. “We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he concluded.
