The Federal Government has announced that Nigeria’s local petrol production has increased from virtually zero in 2023 to about 48 million litres per day, marking a significant shift in the country’s energy sector.

The disclosure was made by Olu Verheijen during the Nigerian-British Chamber of Commerce Energy Day 2026 held in Lagos.

According to Verheijen, the development means that, for the first time in decades, most of the petrol consumed in Nigeria is now refined locally rather than imported.

She explained that the rise in domestic refining has significantly reduced the country’s dependence on imported fuel and eased pressure on foreign exchange demand. Petrol import costs, she said, fell sharply from about ₦2.3 trillion in the first quarter of 2025 to less than ₦90 billion a year later.

“Fewer dollars spent on fuel means less pressure on the naira. Energy security and currency stability are not separate goals; they are the same goal,” Verheijen stated.

On crude oil production, she revealed that Nigeria’s crude oil and condensate output averaged 1.64 million barrels per day in 2025, representing an increase of roughly 400,000 barrels per day compared to 2023 levels. She described the figure as the highest onshore production level recorded in two decades.

The presidential adviser also disclosed that more than $4 billion worth of international oil company divestments had been completed, helping to expand indigenous participation in onshore operations while major oil firms shifted focus to deepwater and integrated gas projects.

According to her, pipeline operations have improved significantly, while incidents of illegal refining have reduced, contributing to higher production levels and increased government revenue.

Reflecting on the state of the sector when the current administration assumed office in 2023, Verheijen said the industry faced serious challenges, including unsustainable fuel subsidies, foreign exchange distortions, low production levels and mounting power-sector debts.

She noted that the government responded by removing fuel subsidies and implementing exchange-rate reforms, describing the decisions as difficult but necessary to restore fiscal stability and investor confidence.

As a result, she said total federation revenue rose from about ₦12 trillion in 2023 to approximately ₦21 trillion in 2024, nearly doubling within a year.

Verheijen added that despite the deregulation of the downstream petroleum sector, the government has largely prevented the widespread fuel shortages and long queues that previously characterised petrol distribution across the country.

Nigeria’s gross gas production has increased to 7.63 billion standard cubic feet per day (bscf/d), up from about 6.83 billion standard cubic feet per day recorded in 2023, according to the Presidency.

The disclosure was made by Olu Verheijen during the Nigerian-British Chamber of Commerce Energy Day 2026 held in Lagos.

Verheijen said Nigeria’s proven gas reserves have also grown to more than 215 trillion cubic feet, attributing the progress to targeted presidential directives aimed at improving investment conditions for deep-water projects, non-associated gas development and midstream infrastructure.

According to her, more than $4 billion in international oil company divestments have been redirected into deep-water and integrated gas projects, while reforms introduced by President Bola Ahmed Tinubu have significantly reduced the cost and time required to do business in the sector.

She explained that contract approval timelines, which previously took as long as 36 months, have been reduced to about 14 months, with the government targeting a further reduction to six months.

The presidential adviser noted that Nigeria’s share of African upstream Final Investment Decisions (FIDs) rose from about four per cent in 2023 to roughly 40 per cent across 2024 and 2025. She added that the improvement attracted about $10 billion in commitments, with a potential investment pipeline estimated at $500 billion.

Verheijen said several previously stalled projects, including the Bonga North, Ubeta and HI gas developments, have resumed, while new non-associated gas projects are expected to strengthen long-term supply for Nigeria’s liquefied natural gas exports.

She stressed that the administration views gas not only as a transition fuel but also as a key driver of industrialisation, supporting power generation, fertiliser production, petrochemicals, clean cooking, compressed natural gas transportation, manufacturing and exports.

On the power sector, Verheijen said the government is addressing longstanding financial challenges through the Presidential Power Sector Debt Reduction Programme. She revealed that the Federal Executive Council approved a bond programme of up to ₦4 trillion to clear verified debts owed to electricity generation companies and gas suppliers.

According to her, generation companies have already signed settlement agreements worth about ₦2.28 trillion, while a ₦501 billion first-series bond has been issued and oversubscribed. A second bond worth ₦729 billion is expected to complete the first phase of the programme.

Verheijen described the initiative as a strategic intervention designed to restore liquidity, rebuild investor confidence and create a stronger foundation for future investments across Nigeria’s energy value chain.