Nigeria’s oil output climbs above 1.8 million barrels per day as officials tout reforms

Nigeria’s crude oil production rebounded to over 1.8 million barrels per day, up from about one million barrels per day a year earlier, according to Minister of State for Petroleum Resources Heineken Lokpobiri. The surge was linked to President Bola Ahmed Tinubu’s directive to remove upstream bottlenecks, a rise in active drilling rigs from 14 to more than 60, and increased participation by indigenous firms, which now provide over 60 % of daily output.

At the opening of the 25th Nigerian Oil and Gas Energy Week in Abuja, officials announced a PwC‑led benchmarking of more than 270 fees, taxes and levies to streamline the sector’s cost structure. NNPC CEO Bashir Bayo Ojulari highlighted a 98 % recovery rate at export terminals, signalling improved operational stability.

Analysts caution that the gains are fragile. Production in May had reached roughly 1.53 million barrels per day, driven mainly by reduced pipeline attacks and a temporary geopolitical price premium from the Iran‑U.S. conflict in the Strait of Hormuz. The recent decline in oil prices, combined with a modest fiscal oil‑price assumption of $60 per barrel, erodes the revenue windfall. Moreover, the expanding Dangote refinery now consumes more domestic crude, limiting export earnings even as domestic processing rises.