Nigeria’s oil production has climbed to a five year high, with the Nigerian National Petroleum Company Limited (NNPCL) reporting crude output of 1.71 million barrels per day in its latest one year performance review.
The figure reflects a recovery in national output and signals improved upstream activity despite persistent challenges in the sector. The update, covering April 2025 to April 2026, was disclosed by Group Chief Executive Officer Bayo Ojulari, who described the results as measurable progress across production, infrastructure, and financial operations.
Within the upstream segment, the company’s exploration and production arm recorded a peak output of 365,000 barrels per day in December 2025, marking its highest level on record. The report also highlighted the execution of a revised Production Sharing Contract framework for oil blocks PPL 2000 and 2001, introducing terms designed to support the development of deepwater non associated gas resources.
In addition, a long standing dispute linked to the former OPL 245 asset has been resolved and restructured into new contract areas, including PMLS 102 and 103, as well as PPLs 2011 and 2012.
Gas Expansion and Downstream Integration
Gas supply rose to 7.5 billion standard cubic feet per day in 2025, supported by infrastructure expansion and new commercial agreements. Key milestones include the completion of the River Niger crossing on the Ajaokuta Kaduna Kano pipeline and the commissioning of the Assa North Ohaji South processing plant, now connected to the Obiafu Obrikom Oben pipeline network.
The company confirmed multiple supply agreements involving industrial users, including Dangote Refinery, Dangote Fertiliser, and Dangote Cement, alongside the rollout of a Gas Master Plan in January 2026.
In the downstream segment, the company introduced an Incorporated Joint Venture model aimed at repositioning its refineries as commercially viable entities. It also sustained crude supply to the Dangote Refinery under the crude for naira arrangement, a policy designed to ease foreign exchange pressure and stabilise domestic fuel supply.
NNPCL further consolidated its 7.25 percent equity stake in the refinery, describing the move as critical to safeguarding national energy interests. On the international front, the company expanded its footprint through shipping partnerships and introduced a new crude grade, Cawthorne.
Financially, NNPCL reported the resumption of full monthly remittances to the Federation Account since July 2025. It also reinstated monthly performance reporting and held its first earnings call in November 2025, signalling a shift towards improved transparency and investor engagement.
Outlook and Structural Constraints
Despite the increase in output, operational challenges persist. Pipeline disruptions, crude theft, infrastructure gaps, and supply inconsistencies continue to affect stability across the value chain.
The company noted ongoing internal reforms under its Fit4Future initiative, alongside workforce expansion and performance management changes, as part of efforts to strengthen efficiency and long term competitiveness.
While the recovery in production points to improved upstream performance, sustaining growth will depend on consistent crude supply, infrastructure reliability, and policy stability. The outcome remains critical as Nigeria seeks to support expanding domestic refining capacity and reduce dependence on imported petroleum products.