Minister Cites Reforms, New Investments and Stronger Local Content Amid Production Challenges
Nigeria’s oil and gas sector recorded notable progress in 2025, driven by reforms, fresh investments and strengthened local content development, according to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.
The minister disclosed this in a post on his official X (formerly Twitter) handle on Wednesday, where he described the industry as remaining open for business throughout the year.
Lokpobiri said the Federal Government actively engaged investors, launched new projects and deepened partnerships across both the upstream and downstream segments of the sector.
According to him, reforms implemented during the year contributed to improved production levels, ensured compliance with industry obligations and kept sustainability at the centre of operations.
Local Content, Value Retention Highlighted
The minister said increased in-country value retention translated into tangible outcomes for the industry, describing 2025 as a successful year for Nigeria’s oil sector.
“From upstream to downstream, Nigeria stayed open for business. We engaged investors, launched new projects, strengthened partnerships, and deepened local content,” Lokpobiri stated.
He added that reforms helped boost production, obligations were met, and sustainability remained a priority, noting that the sector delivered “real results” and was positioned for further growth.
“2025 was a win, and we are just getting started,” the minister said.
Optimism Despite OPEC Output Shortfall
Lokpobiri’s comments come amid growing optimism that Nigeria’s oil industry can sustain growth while balancing investor confidence with national development objectives.
However, the sector continued to face production challenges, as Nigeria struggled to consistently meet its crude oil output quota set by the Organisation of the Petroleum Exporting Countries (OPEC).
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show that Nigeria produced a total of 443.25 million barrels of crude oil between January and October 2025.
This translates to an average production level of about 1.46 million barrels per day, placing the country below its 1.5 million barrels per day OPEC quota. The output represents approximately 97 per cent of the assigned quota over the 10-month period.
Below Budget Benchmark
The production performance also fell short of the Federal Government’s 2025 budget benchmark, which projected oil output of over two million barrels per day, including crude oil and condensate.
While the government has pledged to ramp up production through improved security, reduced crude oil theft and the rehabilitation of critical infrastructure, the January-to-October figures indicate that structural and operational challenges continue to limit output growth.
