… Oil production hits 1.7mbpd as gas output tops 7bcf/day in 2025
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The Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC Ltd), Mr Bayo Ojulari, has assured Nigerians that rising competition in the downstream petroleum sector will ultimately benefit consumers, despite the current adjustment pressures in the market.
Ojulari, who spoke to journalists after meeting President Bola Ahmed Tinubu at his Lagos residence on Sunday, said the transition to a fully competitive, willing-buyer, willing-seller regime was bound to generate early tensions but would stabilise over time.
“At the end of the day, Nigerians on the streets will be the beneficiaries. Where there is healthy competition, the buyers are the ultimate beneficiaries,” he said.
The NNPC chief said the meeting with the President was to brief him on the company’s end-of-year performance and outline strategic priorities for 2026, adding that the visit also provided an opportunity to appreciate Tinubu’s support for the ongoing transformation of the national oil company.
“I came to update Mr President on NNPC’s end-of-2025 performance and to discuss our strategic priorities for 2026. It was also to thank him for the inspiration he has given the new management and board through this challenging period of transformation,” he said.
Ojulari described the reform of NNPC as difficult but unavoidable, noting that presidential backing had been critical to the progress recorded so far. “Transformation is very difficult. With his support, we have been able to make significant improvements to the structure of NNPC,” he said.
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On production, he said the company recorded measurable gains in 2025 compared with the previous year. “Last year, we were producing about 1.5 million barrels per day. This year, we are approaching over 1.7 million barrels per day in oil production,” he said.
He added that gas output also rose significantly within the same period. “Our gas production increased from about 6.5 billion standard cubic feet per day to over 7 billion standard cubic feet per day. These improvements are driven by deep structural changes within the organisation,” he said.
Ojulari also highlighted progress on the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, describing it as one of the most significant milestones of the year.
“We successfully completed the welding of the main AKK line and crossed the River Niger, which had been a challenge for many years,” he said.
According to him, completion of the main line will allow connections to commence early next year, unlocking gas supply to large parts of northern Nigeria.
“With the main line completed, we can begin connections early next year. That will deliver gas at scale to northern Nigeria,” he said.
He listed Kaduna, Kano, Ajaokuta and Abuja as major beneficiaries, noting that improved gas availability would accelerate industrial development.
“We expect to see industrial parks, gas-based industries, fertiliser plants and increased power generation,” he said.
Looking ahead to 2026, Ojulari said boosting production remains NNPC’s top priority, stressing that it would require sustained efforts to attract investment.
“Increasing production may sound simple, but it requires attracting the right investments, whether in oil or gas,” he said.
He disclosed that NNPC is targeting at least 1.8 million barrels of oil per day next year, alongside higher gas output.
He added that the company expects more final investment decisions and is reviewing its asset portfolio to unlock additional value.
Ojulari said President Tinubu commended the management and board for early gains but emphasised long-term targets. “Mr President charged us to drive his performance aspirations, including attracting over $30 billion in additional investment by 2030,” he said.
He added that the President also reiterated the goal of raising crude oil production to two million barrels per day by 2027.
Addressing concerns over downstream pricing and supply, Ojulari urged Nigerians to understand the structural changes introduced by the Petroleum Industry Act (PIA). “The PIA fundamentally separated regulation from business,” he said.
He explained that regulatory responsibilities now lie with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while NNPC operates strictly as a commercial entity.
“Post-PIA, NNPC is no longer a regulator. We are a CAMA company that must compete profitably,” he said, adding that the company no longer receives federation allocations.
On supply, he said NNPC remains the supplier of last resort and is working closely with downstream players, including the Dangote Refinery, to ensure product availability nationwide.
He acknowledged current market tensions but described them as temporary. “Competition is not easy. We are still in the early stages of a willing buyer-willing seller market,” he said.
He noted that the entry of large domestic refineries was already reshaping the market. “Having a refinery like Dangote in-country, which we did not have before, will naturally impact the market,” he said.
Describing domestic refining as a positive development, Ojulari said the transition must be carefully managed.
“It is a major gain for Nigeria to have a refinery supplying West Africa and beyond. What we must do is manage this transition together so that market forces can stabilise and everyone benefits,” he said.
He expressed confidence that sustained reforms and cooperation among stakeholders would soon make the gains of competition clearer to ordinary Nigerians.
