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.
