Nigeria’s oil production nears 1.83mbpd, targets 2.5mbpd by 2026

Nigeria’s oil sector is showing signs of renewed momentum as crude production edges closer to 1.83 million barrels per day (mbpd), driven by the federal government’s “One Million Barrels Initiative” launched in 2024.

Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said on Thursday that current unreconciled daily production is averaging between 1.7 million and 1.83 million bpd, a significant rise from the 1.46 million bpd recorded when the initiative began.

Speaking at the 50th anniversary conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, he also noted that the scheme is designed to lift output to 2.5 mbpd by 2026.

The strategy includes reactivating dormant fields, accelerating regulatory approvals, and improving operational efficiency across the upstream value chain.

Read also: Nigeria’s crude output hits 1.5mbpd in July, exceeds OPEC quota for second month

“Equally crucial is the protection and optimisation of national hydrocarbon assets. The approval of 37 new evacuation routes, coupled with intensified collaboration with national security agencies, has significantly curtailed crude theft and enhanced accountability across the industry,” he added.

According to Komolafe, enforcing the domestic crude supply obligation (DCSO) is also ensuring steady feedstock for local refineries, helping to strengthen Nigeria’s internal fuel supply chains and bolster long-term economic resilience.

Hydrocarbons remain central to Nigeria’s economy, accounting for nearly 90 percent of foreign exchange earnings and about 70 percent of government revenue.

Komolafe said the government recognises that sustaining the sector’s long-term viability will require balancing production growth with climate responsibility.

Latest report from the Organisation of Petroleum Exporting Countries (OPEC) revealed that Nigeria’s average daily crude production rose to 1.50 million bpd in July, surpassing OPEC’s quota and signalling a gradual recovery after years of output challenges.