Mkpoikana Udoma
Port Harcourt — Nigeria’s indigenous oil and gas producers now control more than 50 per cent of national hydrocarbon production, marking a major structural shift in the country’s energy industry driven by recent fiscal and regulatory reforms.
Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed this after a meeting with the leadership of the Independent Petroleum Producers Group IPPG, led by its Chairman, Mr. Gbite Falade, where both sides reviewed the evolving operating environment in Nigeria’s oil and gas sector.
According to Verheijen, the transition reflects the impact of policy reforms that have reshaped project economics and improved the investment climate for Nigerian-owned companies, particularly following recent asset divestments by international oil companies.
“Following recent divestments, indigenous operators now control over 50 per cent of national oil and gas production, a significant structural shift enabled by deliberate fiscal and regulatory reform,” she said.
She noted that members of the IPPG acknowledged that recent policy measures have “materially improved project economics and the operating environment for Nigerian companies,” strengthening their ability to operate competitively and attract capital.
Verheijen said the Federal Government remains committed to sustained engagement with indigenous producers, describing them as central to building a resilient and investment-ready oil and gas industry.
“We remain committed to close engagement with indigenous producers as partners in building a competitive, investment-ready oil and gas sector that delivers long-term value for Nigerians,” she stated.
The growing dominance of indigenous operators represents a turning point for Nigeria’s upstream sector, with local firms increasingly responsible for production growth, field redevelopment and employment, even as global capital becomes more selective.
The IPPG represents Nigeria’s leading indigenous exploration and production companies and has played a growing role in shaping industry policy discussions as local operators expand their footprint across the upstream value chain.
