Nigeria has recorded its strongest oil production performance in five years, with output rising to 1.71 million barrels per day, according to the Nigerian National Petroleum Company, signalling renewed momentum in a sector long weighed down by instability and underinvestment.
The increase, tracked between April 2025 and April 2026, reflects a combination of upstream operational improvements, infrastructure expansion, and policy reforms aimed at restoring confidence in Africa’s largest oil producer. For a country that has struggled in recent years to meet production targets due to pipeline vandalism, oil theft, and regulatory uncertainty, the rebound marks a significant shift.
NNPC Group Chief Executive Officer Bayo Ojulari attributed the gains to a more coordinated approach across the energy value chain. Peak production reached about 565,000 barrels per day in December 2025 under NNPC’s exploration and production arm, while natural gas output remained steady at approximately 7.5 billion standard cubic feet per day.
Infrastructure has played a central role in stabilising supply. Projects such as the Ajaokuta-Kaduna-Kano pipeline river crossing and the commissioning of additional gas processing facilities have improved reliability and reduced disruptions. These upgrades are critical in a system where logistical bottlenecks have historically limited output even when reserves were available.
Beyond physical infrastructure, reforms in governance and transparency appear to be reshaping the sector’s performance. NNPC highlighted the introduction of monthly operational reporting, its first-ever earnings call in late 2025, and continued remittances to the federation account as part of a broader push toward accountability. These measures are designed to reassure investors and signal a break from past inefficiencies.
Another factor supporting the production increase is the expansion of domestic gas supply agreements. NNPC has strengthened partnerships with major industrial players, including Dangote Refinery and Dangote Cement, aligning gas output with rising industrial demand. This strategy not only boosts utilisation but also helps diversify revenue streams beyond crude exports.
The company also confirmed that it has consolidated its 7.25 percent equity stake in the Dangote Refinery, alongside the adoption of an incorporated joint venture model aimed at improving operational efficiency and financial autonomy in refinery operations. This move reflects a broader effort to strengthen Nigeria’s downstream capacity and reduce dependence on imported refined products.
The production surge comes at a critical time for Nigeria’s economy. Oil revenues remain a major source of government income and foreign exchange, and improved output could ease fiscal pressures while supporting currency stability. Higher production also positions Nigeria to better capitalise on elevated global oil prices, particularly as geopolitical tensions continue to disrupt supply chains.
However, the sustainability of this growth remains a key question. While recent gains are encouraging, maintaining output at higher levels will require continued investment, security improvements in oil-producing regions, and consistent policy execution. The sector’s history of volatility means that progress can quickly reverse if underlying challenges are not addressed.
For now, the data points to a sector regaining traction. Nigeria’s ability to sustain and build on this momentum will determine whether the current rebound translates into long-term stability and growth for its energy industry and broader economy.
