Nigeria’s indigenous oil producers have referred to as for pressing reforms to capital entry and monetary frameworks, warning that structural obstacles threaten to undermine current features in home vitality manufacturing regardless of improved output figures and strengthening native possession throughout the sector.
Adegbite Falade, chairman of the Unbiased Petroleum Producers Group, used his maiden handle on the Nigeria Worldwide Vitality Summit to press for “daring, coordinated motion” to construct what he termed a resilient and self-sustaining vitality business. The intervention comes as indigenous operators account for greater than half of nationwide oil manufacturing for the primary time, marking a big shift within the business’s possession profile.
Common liquids manufacturing climbed to roughly 1.64 million barrels per day in 2025, supported by what Falade described as strengthened coverage measures and improved operational situations. The milestone displays years of gradual switch of property from worldwide oil firms to native operators, a transition that has reshaped Nigeria’s upstream panorama however raised questions on financing capability and technical functionality.
Talking earlier than international dignitaries, together with Gambian President Adama Barrow and senior representatives from the Gasoline Exporting Nations Discussion board and African Petroleum Producers Organisation, Falade acknowledged progress throughout Nigeria’s vitality worth chain. He cited increasing gasoline infrastructure, rising home refining capability, and early indicators of restored investor confidence following reforms beneath President Bola Tinubu’s administration.
Nonetheless, the IPPG chairman emphasised that operational value premiums, insufficient entry to reasonably priced long-term capital, and administrative inefficiencies proceed to constrain business members. “Nigeria’s vitality future have to be outlined by self-sufficiency, competitiveness, and collaboration,” Falade mentioned, calling for accelerated infrastructure funding via public-private partnerships and streamlined regulatory processes.
The enchantment for improved capital entry displays mounting strain on indigenous producers who’ve assumed operatorships of growing old property requiring substantial funding for rehabilitation and enhanced restoration. Many native firms have struggled to safe challenge financing at aggressive charges, going through larger borrowing prices than worldwide counterparts on account of perceived nation and credit score dangers.
Within the midstream section, focused funding assist has superior gasoline infrastructure tasks, whereas main liquefied pure gasoline enlargement efforts close to completion. Home refining functionality has strengthened with elevated operational capability from the Dangote refinery, Nigeria’s latest large-scale facility, starting to cut back petroleum product imports.
Falade warned that with out regulatory and monetary stability, stronger safety in producing areas, and aggressive working frameworks, current momentum may stall. He urged stakeholders to maneuver past uncooked hydrocarbon exports towards constructing an ecosystem that creates in-country worth and strengthens GDP contribution.
“The way forward for our sector lies in producing in-country worth that fuels financial development,” the chairman said, calling for an business that delivers “actual and lasting advantages” to Nigerian residents via environment friendly governance and resilient operations.
The summit’s theme, Vitality for Peace and Prosperity: Securing Our Shared Future, underscored vitality safety as foundational to African improvement. Falade referred to as for collaboration throughout operators, regulators, service suppliers and buyers to form a sustainable trajectory for the continent’s vitality transition.
IPPG, which represents indigenous exploration and manufacturing firms, reaffirmed alignment with nationwide coverage targets and pledged continued partnership with authorities stakeholders to advance sector transformation. The group’s intervention indicators rising assertiveness amongst native operators looking for coverage assist to consolidate their expanded position in Nigeria’s vitality financial system.
