(DDM) – Nigeria has recorded a surge in crude oil production and drilling activities, with officials crediting recent reforms under President Bola Tinubu for renewed investor confidence in the country’s energy sector.
Diaspora Digital Media (DDM) gathered that the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, announced that Nigeria’s oil output currently ranges between 1.7 million and 1.83 million barrels per day.
He disclosed this while addressing industry leaders at the Africa Energy Week in Cape Town, South Africa.
According to Lokpobiri, key policy reforms such as the Petroleum Industry Act (PIA) and the federal government’s Project One Million Barrels initiative have been instrumental in driving growth and stability in Nigeria’s oil sector.
These measures, he explained, are designed to streamline regulation, incentivize investors, and increase production efficiency.
The minister further revealed that asset transfers by international oil companies (IOCs) operating in Nigeria have triggered new investments worth over $5.5 billion.
These inflows, he noted, have already boosted production capacity by an additional 200,000 barrels per day.
Lokpobiri described Nigeria as “open for business,” assuring global investors that the country is committed to creating a stable, transparent, and attractive operating environment.
He emphasized that the government is determined to reverse years of production decline, pipeline vandalism, and underinvestment that had plagued the oil and gas sector.
Background analysis shows that Nigeria, Africa’s largest crude oil exporter, has faced significant challenges in meeting its OPEC production quotas in recent years.
Oil theft, sabotage of key pipelines, foreign divestments, and policy uncertainty combined to drag output below 1.2 million barrels per day at certain points in 2022 and 2023.
However, the passage of the Petroleum Industry Act and Tinubu’s broader economic reforms have started to reshape investor sentiment.
Analysts argue that by addressing bottlenecks in licensing, royalties, and host community benefits, the government has restored confidence among both domestic and international players.
Nigeria’s renewed push for energy investment comes at a critical time, as global demand for oil continues to fluctuate amid energy transition debates.
While some countries are shifting toward renewables, Nigeria remains heavily reliant on crude oil revenues, which account for a significant share of foreign exchange earnings and government funding.
Energy experts say the $5.5 billion injection signals a strong vote of confidence in Nigeria’s potential to reclaim its position as a top-tier oil producer on the continent.
Still, they caution that sustained progress will depend on tackling security challenges in the Niger Delta and ensuring transparent management of oil revenues.
For the Tinubu administration, the latest developments bolster its message that Nigeria is entering a new era of economic reform, with the oil and gas sector at the heart of efforts to attract foreign capital and drive growth.
With daily production edging closer to two million barrels and drilling rates rising, Nigeria appears poised to consolidate gains and strengthen its role in global energy markets.