Nigeria oil production increases as sector shifts toward value-led strategy

Nigeria's energy sector is experiencing a shift toward increased production and a strategic focus on value creation. NNPC Limited reported steady growth in crude oil and gas output, with crude oil production (including condensate) rising from an average of 1.60 million barrels per day (mbpd) in April 2025 to 1.67 mbpd by April 2026, representing a 6% increase. Gas production also grew by 5%, rising from 7,354 mmscfd in April 2025 to 7,729 mmscfd in April 2026.

In response to leadership scrutiny regarding recent oil licensing rounds, NNPC Limited clarified that under the Petroleum Industry Act 2021, the authority to conduct licensing rounds and allocate oil blocks belongs to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), not NNPC Limited, which operates as a commercial entity.

As of mid-2026, Nigeria's crude oil output has risen to approximately 1.56 mbpd, exceeding its OPEC quota of 1.5 mbpd. The country is now transitioning from a volume-led model to a value-led energy strategy, aiming to balance export earnings with domestic refining capabilities, supported by developments such as the Dangote Refinery.