The Federal Government says Nigeria’s domestic petrol production has soared from virtually zero in 2023 to about 48 million litres per day, marking a major turnaround in the country’s energy sector and significantly reducing dependence on fuel imports.
The disclosure was made by Mrs. Olu Verheijen, Special Adviser to the President on Energy, during the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos.
Speaking on the theme, “Energy in Nigeria: From Potential to Reality,” Verheijen said Nigeria had reached a historic milestone, with the bulk of the petrol consumed nationwide now being refined locally for the first time in decades.
According to her, the rise in local refining has eased pressure on the foreign exchange market and strengthened the naira.
“For decades, every cargo of imported petrol represented a constant demand for scarce dollars and a structural drain on the economy. Today, that burden is rapidly diminishing,” she said.
Verheijen revealed that petrol import costs crashed from about N2.3 trillion in the first quarter of 2025 to less than N90 billion a year later, describing the development as a major boost for both energy security and currency stability.
On crude oil production, she said Nigeria had regained investor confidence, with crude oil and condensate output averaging 1.64 million barrels per day in 2025—an increase of roughly 400,000 barrels daily compared to 2023 levels.
She noted that the figure represents the country’s highest onshore production level in nearly two decades.
The presidential aide further disclosed that more than $4 billion worth of international oil company divestments had been successfully concluded, strengthening indigenous participation in onshore operations while enabling multinational firms to focus on deepwater and gas projects.
According to her, improved pipeline security and a sharp decline in illegal refining activities have also contributed to the sector’s recovery.
“Pipeline uptime is now consistently high, and illegal refining has reduced significantly. Every additional barrel produced translates into more revenue, more jobs, and a stronger federation,” she said.
Reflecting on the state of the industry when the Tinubu administration took office in 2023, Verheijen described the sector as being under severe pressure, weighed down by unsustainable fuel subsidies, foreign exchange distortions, weak investment inflows, and mounting power-sector debt.
She said the administration’s first priority was to stabilise the sector and rebuild confidence through difficult but necessary reforms.
Among the key measures, she highlighted the removal of fuel subsidies and exchange-rate reforms, which she said helped restore fiscal credibility and unlock government revenues.
As a result, total federation revenue rose from about N12 trillion in 2023 to approximately N21 trillion in 2024, nearly doubling within a year.
Despite fuel market deregulation, Verheijen added that the government had successfully avoided the chronic nationwide petrol shortages and long queues that once characterised fuel supply across the country.
