FG demands concrete action from IOCs to boost oil production
Federal Government Calls for Action from International Oil Companies to Enhance Crude Production
By Obas Esiedesa, Abuja
The Federal Government of Nigeria has urged International Oil Companies (IOCs) to take decisive measures to increase crude oil production, aiming for a target of 2.5 million barrels per day by 2027.
As of 2025, Nigeria’s daily oil production was approximately 1.6 million barrels, falling short of the budget benchmark of 2.06 million barrels per day.
At a panel session concluding the 2026 Nigerian International Energy Summit, Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, emphasized the importance of an enabling environment for oil companies to operate efficiently.
“The success of the oil and gas industry is largely dependent on the success of upstream operators,” Lokpobiri said. He noted that the country’s economy remains heavily reliant on foreign exchange earnings from the petroleum sector.
Lokpobiri further stated, “If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of upstream.”
He reassured participants that the government treats all companies equally within the framework of the Petroleum Industry Act (PIA), ensuring no discrimination between indigenous and foreign operators. “While you may operate at different scales, you are governed by the same regulations,” he added.
The minister also committed to ongoing government support for the industry through reforms, tax incentives, and regulatory adjustments aimed at fully unlocking the sector’s potential.
“We have provided extensive incentives through reforms, tax reliefs, and regulatory changes. The question now is: what will you do in return? The government has given a lot. Now is the time for industry players to reciprocate by investing, producing, and delivering results,” he stated.
