Juliet Ezeh
Nigeria’s oil sector is staging a notable comeback, with daily crude production rising to 1.84 million barrels per day, a development that is strengthening government revenue expectations and renewing confidence in the upstream industry.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the improvement reflects ongoing reforms and regulatory efforts led by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
During a meeting with the Commission’s leadership in Abuja, Edun commended the agency for reversing earlier production declines but stressed that the current momentum must translate into higher and more stable output.
According to him, the Federal Government is firmly targeting 2 million barrels per day as a benchmark for both economic stability and fiscal strength, in line with the broader agenda of Bola Tinubu.
“This is a strong recovery, but the goal remains clear. We must move beyond 1.84 million barrels per day and sustain production at higher levels without setbacks,” Edun stated.
He added that consistency in output is more critical than short-term gains, warning against fluctuations that could undermine revenue projections.
Providing insight into the recovery, the Commission Chief Executive, Oritsemeyiwa Eyesan, attributed the earlier dip in production to operational disruptions and maintenance activities at key oil facilities.
She noted that those challenges have now been resolved, leading to a steady ramp-up in output in recent days.
“We are currently at 1.84 million barrels per day. While that is a significant milestone, we are confident that production will continue to increase,” she said.
Eyesan also revealed that the 2025 licensing round has advanced to the technical and financial evaluation stage, raising expectations that new oil blocks could come on stream within a relatively short timeframe.
She pointed to the growing role of indigenous oil companies, noting that their performance demonstrates increased local capacity and resilience within the sector.
In addition, the Commission confirmed compliance with Executive Order 9 of 2026, including the suspension of the 30 per cent Frontier Exploration Fund deductions and the remittance of revenues directly to the Federation Account.
The policy shift is expected to improve government earnings and enhance transparency in the management of oil revenues.
With production recovering and reforms gaining traction, the government now faces the critical task of sustaining output growth, as hitting the 2mbpd target remains central to Nigeria’s economic stability and budget performance.
