FG Orders NNPC to Boost Oil Production by Year-End
In a bold move to strengthen Nigeria’s economy and reassert its dominance in Africa’s oil sector, the Federal Government on Wednesday directed the Nigerian National Petroleum Company Limited (NNPC Ltd.) to significantly increase crude oil production beyond current levels by the end of the year.
The directive comes as part of President Bola Ahmed Tinubu’s broader strategy to revitalize the oil and gas industry, a key pillar of Nigeria’s economic framework. Currently, the country produces approximately 1.8 million barrels of oil per day (bpd), but the government is targeting at least 2 million bpd by December 2025, with aspirations to reach 3 million bpd by 2027.
To spearhead the ambitious overhaul, the government recently appointed Bayo Ojulari, a former Shell executive, as the new Managing Director of NNPC Ltd., replacing Mele Kyari. Ojulari has been tasked with conducting a comprehensive review of NNPC’s operations and assets to unlock value and increase efficiency.
The government outlined a series of measures designed to support the production increase, including:
Plans to replace obsolete pipelines and launch a rig-sharing program among oil companies to maintain steady operations.
Intensified military operations in oil-producing regions to tackle pipeline vandalism and crude oil theft, particularly through the newly-launched Operation Delta Sanity.
Investment Drive: Introduction of fiscal incentives aimed at attracting up to $50 billion in foreign and local investment into Nigeria’s oil sector before year-end.
Minister of State for Petroleum Resources, Heineken Lokpobiri, reaffirmed the administration’s commitment to restoring investor confidence and ensuring a more transparent, accountable energy sector.
“We are declaring a state of emergency on crude oil production. This is not just about hitting numbers—it’s about rebuilding trust and ensuring Nigeria’s oil industry remains globally competitive,” Lokpobiri said.
The move is expected to stabilize foreign exchange inflows, improve government revenues, and reduce the nation’s fiscal deficit. Analysts have lauded the government’s renewed focus on oil production as critical for achieving macroeconomic stability amid fluctuating global oil prices.
Industry stakeholders have also expressed optimism, emphasizing the need for swift execution and collaboration between government agencies, international oil companies, and local communities.
As the year progresses, all eyes will be on NNPC Ltd. and its new leadership to deliver on this mandate and reposition Nigeria as a top-tier oil producer on the continent.
