Oil and gas
FG Pushes Oil Firms to Raise Output, Targets 2.5mbpd by 2027
By Otobong Gabriel, Abuja
Determined to restore Nigeria’s oil production strength, the Federal Government has challenged International Oil Companies (IOOCs) operating in the country to take bold and immediate steps to scale up crude output as part of efforts to hit a 2.5 million barrels per day (mbpd) target by 2027.
The charge was delivered by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during a panel session at the 9th Nigerian International Energy Summit (NIES).
Lokpobiri stressed that Nigeria’s economic stability remains closely tied to the performance of the upstream petroleum sector, noting that crude oil production is still the backbone of the nation’s foreign exchange earnings.
According to him, without increased crude output, the entire value chain — from refining to distribution — would struggle to function effectively.
“The success of the oil and gas industry starts with the upstream,” he said. “If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Everything is connected.”
He explained that the government has already done its part by creating an enabling environment for operators through reforms, policy adjustments, and incentives designed to boost investment and productivity.
As such, oil companies should have no excuses for underperformance.
The minister also dismissed any notion of preferential treatment within the sector, clarifying that both indigenous producers and international operators are governed by the same rules under the Petroleum Industry Act (PIA).
“There is no discrimination,” he said. “All companies operate in the same Nigerian space under the same law. While the scale of operations may differ, expectations remain the same — collaboration and stronger production.”
Lokpobiri highlighted several government-backed measures including tax incentives, regulatory reforms, and relief packages aimed at unlocking the sector’s full potential.
He urged industry players to reciprocate by committing more capital, increasing exploration activities, and delivering measurable production growth.
He further warned that Nigeria’s performance carries weight beyond its borders.
Success in the upstream sector, he said, would strengthen Africa’s broader energy value chain, while failure could negatively affect midstream and downstream operations across the continent.
With the 2027 production target now firmly in sight, the government appears set to hold operators accountable as it pushes for renewed investment and higher output to revive the nation’s oil fortunes.