NNPCL pushes for sustained production growth, decarbonisation
The optimism by oil and gas operators and the Federal Government that Nigeria’s oil production may hit two million barrels per day this year remains unrealistic, as production levels stood at 1.459 million barrels per day (bpd) in January 2026.
 
The February 2026 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries (OPEC), released yesterday, showed that Nigeria’s production was still 400,000 barrels below the projection in the 2026 budget. 
 
This development, which may translate to more borrowing by the government at a time when the government approved production benchmark of 1.84 million bpd and oil price of $64.85 amid a plan to borrow about N25.9 trillion. 
 
Last year, Nigeria struggled to meet the 2.06 million bpd target; production increased by about 200,000 bpd, ending 2025 at 1.4 million bpd, or about 600,000 bpd below the 2025 budget assumptions.
 
Data in the report shows that while Nigeria’s production is below budget and OPEC quota, the country added the largest oil production in January among OPEC members, as the increase stood at 37,000 bpd 
 
The figures come from OPEC’s assessment of member countries’ supplies based on secondary sources, independent estimates that track actual flows and liftings. The data, however, excluded condensate. Nigeria’s condensate volume has lately hovered around 200,000 bpd. 
 
Production shortfalls directly affect revenue that the Federal Government needs to fund public services and bridge fiscal gaps. Nigeria depends heavily on crude oil exports for foreign exchange and funding a large portion of its national budget. The inability to sustain higher production levels has increased pressure on government finances, contributing to wider reliance on borrowing to fund key expenditures.
 
Meanwhile, Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Limited (NNPCL), Bashir Ojulari, has reaffirmed the company’s commitment to sustained oil and gas production growth alongside stronger decarbonisation efforts, as Africa seeks to secure its energy future.
 
Ojulari spoke during a fireside chat with Mr Andy Brown, Deputy Chair of Ørsted and President of the Energy Institute, at the 2026 International Energy Week (IEW) in London yesterday.
 
He said Africa must align infrastructure, policy and capital to achieve long-term energy security, identifying shared infrastructure, coordinated investment frameworks, cross-border technology exchange and integrated gas market development as critical pillars.
 
According to him, NNPCL’s regional gas initiatives demonstrate how collaboration can unlock scale, efficiency and resilience. He stressed that accelerating flagship projects such as the Nigeria–Morocco Gas Pipeline and the expansion of the West African Gas Pipeline would strengthen regional integration and promote cross-border energy trade.

Ojulari also called for greater policy alignment across African countries, including harmonised pricing frameworks, transit protocols, local content standards and joint technical regulations. 
 
Drawing lessons from Nigeria’s Petroleum Industry Act, he said clear and consistent regulation would help reduce investment friction and safeguard cross-border infrastructure.
 
He further advocated the establishment of structured joint investment platforms among African National Oil Companies (NOCs), arguing that collective action would enable the continent to attract and deploy capital more effectively.
 
Ojulari said the company aims to grow oil production responsibly while scaling up gas development as a foundation for industrialisation. 
 
At the same time, he emphasised the importance of environmental accountability and alignment with global decarbonisation objectives.
 
“Our pathway is clear: grow production responsibly, scale gas as the backbone of Africa’s industrialisation, strengthen environmental accountability, and align with global decarbonisation objectives, while ensuring that Africans are not left behind in the energy transition,” he said.