Nigeria’s oil and gas industry has long been recognized as the backbone of the nation’s economy, yet for much of the past decade, it struggled under the weight of stalled projects, investor apathy, and declining production. That narrative is now shifting dramatically. At the 9th Nigeria International Energy Summit (NIES) 2026, held in Abuja, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced a landmark achievement: in 2025 alone, Nigeria signed 28 new field development plans valued at $18.2 billion, unlocking an estimated 1.4 billion barrels of oil.
This breakthrough signals Nigeria’s return to the global energy investment map and underscores the country’s emergence as Africa’s leading destination for oil and gas capital. The summit, themed “Energy for Peace and Progress: Securing Our Shared Future”, provided a platform for government officials, industry leaders, and international stakeholders to reflect on reforms, celebrate progress, and chart the path forward.
Nigeria’s Investment Breakthrough
Lokpobiri’s announcement was more than a statistic; it was a statement of intent. Between 2024 and 2025, Africa recorded seven major Final Investment Decisions (FIDs) in oil and gas projects. Remarkably, four of those were in Nigeria, cementing the country’s position as a magnet for serious business.
The minister emphasized that this success was not accidental but the result of deliberate reforms, improved policy clarity, and stronger governance. For years, Nigeria’s upstream sector had been in distress, plagued by declining output and capital flight. Now, with renewed investor confidence, the tide has turned.
The Role of Reforms and Governance
Central to Nigeria’s resurgence is the Petroleum Industry Act (PIA), which provided a stable fiscal framework, clearer licensing processes, stronger regulation, and predictable contract terms. Lokpobiri credited the PIA with restoring confidence among investors who had previously been cautious.
Complementing the PIA was the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which granted tax credits and lowered unit operating costs for producers. These measures directly addressed cost pressures in the upstream sector, making Nigeria more competitive globally.
The minister stressed that being “investment-ready” requires more than just resource abundance. It demands clarity, predictability, efficiency, incentives, and alignment — qualities Nigeria is now delivering.
Project One Million Barrels: Tangible Results
One of the most striking achievements highlighted at the summit was the launch of Project One Million Barrels in October 2024. Within a year, crude oil production rose to between 1.7 million and 1.83 million barrels per day, representing a 20% increase over previous levels.
The number of active rigs surged from just 14 in 2023 to over 60 by early 2026. This revival demonstrates that idle assets are being activated and existing assets optimized. For a sector that had stagnated for over a decade, these numbers are proof that reforms are working.
Asset Divestments and Indigenous Participation
Another milestone was the successful completion of long-delayed asset divestments by International Oil Companies (IOCs). These transfers of onshore and shallow-water assets to Nigerian firms added approximately 200,000 barrels per day to national output.
Lokpobiri praised the speed of these divestments under President Bola Tinubu’s leadership, noting that they were concluded in record time. Importantly, the divestments have empowered indigenous producers, who now account for more than 50% of national production. This shift marks a new era of local participation and ownership in Nigeria’s oil and gas sector.
Challenges and Policy Missteps
Despite the progress, Lokpobiri acknowledged that challenges remain. He pointed to structural constraints in Nigeria’s oil and gas service sector, particularly within the engineering, procurement, and construction (EPC) segment.
A misinterpretation of the Nigerian Oil and Gas Industry Content Development Act had inadvertently encouraged the rise of “briefcase EPC companies.” These entities, lacking real capacity, forced out experienced international contractors while sidelining competent indigenous firms. The minister warned that such missteps could undermine the sector’s growth if not corrected.
Africa’s Energy Context
Lokpobiri also placed Nigeria’s progress within the broader African context. He highlighted the continent’s staggering $120 billion annual hydrocarbon import bill, describing it as a lost opportunity. He called for stronger support for the African Energy Bank, headquartered in Nigeria, to mobilize resources and tackle Africa’s energy challenges.
“If we do not mobilise resources to solve Africa’s energy problems, our misery will increase as our population grows. The responsibility is ours and ours alone,” he said.
Industry Voices: The Call for Sustained Reform
The summit was not only about government achievements; industry leaders also weighed in. Adegbite Falade, Chairman of the Independent Petroleum Producers Group (IPPG) and CEO of Aradel Holdings, delivered a keynote address emphasizing the need for urgent reforms to streamline industry fees, reduce bureaucracy, and improve access to long-term capital.
Falade noted that Nigeria’s oil and gas sector had recorded significant growth, with indigenous producers now accounting for more than half of national output. He attributed this to improved export pipeline availability, reduced crude losses, and stronger local participation.
However, he cautioned that the sector still operates at significantly elevated costs compared to other jurisdictions. Without affordable, long-term capital and reduced bureaucracy, Nigeria risks losing competitiveness.
Global Energy Landscape: A Shifting Context
Falade also reminded stakeholders that Nigeria’s progress must be viewed against the backdrop of a volatile global energy landscape. Conflicts, shifting alliances, and growing energy insecurity are reshaping the industry.
“In today’s interconnected world, energy has no borders. Shocks in one region affect people across continents, and Africa, including Nigeria, is not shielded from these pressures,” he said.
This perspective underscores the importance of resilience, diversification, and collaboration in Nigeria’s energy strategy.
Stakeholder Consensus: A Recovery Path
The consensus among stakeholders at NIES 2026 was clear: Nigeria’s oil and gas sector is on a strong recovery path. Policy clarity, regulatory reforms, and strategic investments are driving growth. Yet, sustained collaboration between government, indigenous companies, and international partners is essential to consolidate gains, expand domestic energy access, and position Nigeria as a regional and global energy hub.
Conclusion: Securing Nigeria’s Energy Future
Nigeria’s oil and gas sector is experiencing a renaissance. From the signing of $18.2 billion worth of field development plans to the successful implementation of the Petroleum Industry Act, the country has demonstrated that deliberate reforms and governance can restore investor confidence.
The surge in production, the rise of indigenous participation, and the completion of long-delayed asset divestments all point to a sector that is not only recovering but thriving. Yet, challenges such as structural constraints in the service sector and elevated operating costs must be addressed to sustain momentum.
As Africa grapples with its energy future, Nigeria’s leadership — exemplified by its support for the African Energy Bank — will be critical. The journey ahead requires clarity, collaboration, and commitment. With the foundations now laid, Nigeria is poised to secure its shared future, ensuring that energy becomes a driver of peace, progress, and prosperity.
