The Nigerian National Petroleum Company Limited (NNPC Ltd) has emphasised the need for sustained drilling activities and increased investment in upstream operations to enable Nigeria to achieve its ambitious crude oil production target of three million barrels per day.
The company disclosed that Nigeria’s crude oil production, including condensates, recently increased to approximately 1.821 million barrels per day, reflecting improvements in security, regulatory coordination and upstream operational activities.
Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed this at the 2026 Association of Energy Correspondents of Nigeria (NAEC) Conference held on Thursday in Lagos.
Ojulari, who was represented by the company’s Chief Communications Officer, Andy Odeh, explained that the improvement followed stronger collaboration among industry stakeholders and measures designed to address operational challenges affecting oil production.
He maintained that although recent production gains were encouraging, Nigeria would need to sustain drilling programmes, reactivate underperforming assets and attract fresh investment to achieve its long-term production objectives.
Sustained Drilling Critical to Production Growth
According to NNPC, continuous drilling activities remain essential to increasing the country’s production capacity and maintaining output from existing oilfields.
Oil wells naturally experience declining production over time, making new exploration and development activities necessary to replace depleted reserves and sustain output.
For Nigeria, this challenge has been compounded by years of underinvestment, infrastructure limitations, security concerns and operational disruptions in several producing areas.
The national oil company believes that expanding drilling activities across existing and new fields will help reverse production losses and improve the utilisation of available reserves.
However, achieving three million barrels per day will require more than drilling additional wells.
The industry will also need reliable transportation infrastructure, adequate financing, efficient regulatory approvals and improved security across production facilities.
Improved Security Supports Production Recovery
Ojulari attributed part of the recent production improvement to stronger security arrangements around oil exploration and production infrastructure.
Pipeline vandalism, crude oil theft and illegal refining activities have historically contributed to production losses and disruptions across Nigeria’s oil-producing regions.
Such activities can force operators to suspend production, delay maintenance and incur additional security costs.
According to the NNPC chief, improved protection of critical infrastructure has contributed to a reduction in oil theft and created a more favourable environment for upstream operations.
Greater security could also encourage international and indigenous operators to increase investment in fields that have experienced repeated disruptions.
Nevertheless, sustained monitoring and cooperation among security agencies, host communities and industry operators will remain important to maintaining the gains.
Government Seeks to Remove Investment Bottlenecks
The company’s position aligns with recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who highlighted improvements in Nigeria’s upstream operating environment.
Speaking at the fifth anniversary commemoration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, Lokpobiri attributed production improvements to stronger collaboration between government and industry stakeholders.
He also pointed to efforts to remove regulatory and operational bottlenecks that had previously discouraged investment.
These challenges have included lengthy approval processes, uncertainty surrounding project execution and difficulties associated with developing new production infrastructure.
The Federal Government has continued to promote reforms aimed at improving the competitiveness of Nigeria’s petroleum industry and attracting capital into exploration and production.
Why Higher Oil Output Matters to Nigeria
Crude oil remains an important source of export earnings and government revenue for Nigeria.
An increase in production could improve foreign exchange inflows, strengthen public finances and support the country’s external reserves, depending on international prices and the volume of crude available for export.
Higher production could also create opportunities for indigenous service companies involved in drilling, engineering, logistics and equipment supply.
For oil-producing communities, renewed investment may support employment and economic activities, although the benefits will depend on local participation, environmental safeguards and responsible project implementation.
However, increased output does not automatically translate into higher government revenue.
Production costs, contractual arrangements, crude prices and other fiscal considerations will influence the financial benefits.
Three Million Barrels Target Remains Ambitious
At the reported production level of 1.821 million barrels per day, Nigeria would need to increase output by approximately 1.179 million barrels daily to reach the three-million-barrel target.
This represents an increase of about 65 per cent over the reported level.
The scale of the required expansion underscores the importance of sustained investment and operational improvements.
It also highlights the need to distinguish production capacity from actual daily output.
While new projects may increase available capacity, consistent production will depend on infrastructure reliability, security and market conditions.
Focus Shifts to Long-Term Production Sustainability
Industry stakeholders will now be watching whether the recent improvements can be maintained over several months.
Sustained production growth would strengthen confidence in Nigeria’s upstream petroleum industry and potentially encourage new investment commitments.
For NNPC, the immediate priority remains supporting drilling programmes, protecting existing infrastructure and working with regulators to improve operational efficiency.
The company maintained that continued collaboration among government institutions, operators and other stakeholders will be necessary to achieve the country’s production ambitions.
Nigeria’s ability to reach three million barrels per day will ultimately depend on whether these initiatives translate into sustained field development and measurable increases in crude output.
