Nigeria is targeting an increase in crude oil production to an average of 1.8 million barrels per day (bpd) in 2026 as the Nigerian National Petroleum Company moves to strengthen output capacity and improve operational performance.
Group Chief Executive Officer of the company, Bashir Bayo Ojulari, said Nigeria could raise production by about 100,000 bpd over the next few months as part of ongoing efforts to scale output.
Speaking on the sidelines of the CERAWeek by S&P Global conference in Houston, Ojulari noted that the country produced between 1.6 million and 1.7 million bpd on average last year and is working to close the gap toward its new production target.
“We are building that capacity,” he said, adding that while Nigeria cannot match the scale of major producers such as Saudi Arabia, it remains positioned to contribute additional supply to the global market.
The projected increase comes at a time when global oil markets are facing supply uncertainties linked to geopolitical tensions, including disruptions associated with the ongoing conflict involving the United States, Israel and Iran.
Nigeria’s planned output expansion is expected to provide incremental support to global supply balances.
Ojulari also disclosed that the national oil company completed a comprehensive review of its business portfolio last year and has begun implementing key changes aimed at improving efficiency and delivery.
A central focus of the reform agenda is enhancing project execution, ensuring that oil and gas projects are delivered on schedule and within budget.
The move follows a history of delays that have constrained production growth and limited Nigeria’s ability to fully capitalise on its hydrocarbon resources.
Industry analysts noted that increasing output will depend not only on operational improvements but also on sustained investment, security of oil infrastructure and effective collaboration with international oil companies.
Nigeria, Africa’s largest oil producer, continues to face structural challenges including pipeline vandalism, crude theft and underinvestment, which have historically impacted production levels.
The government and industry stakeholders are expected to intensify efforts to address these issues as part of a broader strategy to stabilise output and maximise revenue from the oil sector.
While the planned increase of 100,000 bpd represents a moderate gain, it signals renewed momentum within the sector and aligns with Nigeria’s objective of strengthening its position in the global energy market.
Market participants will be watching closely to assess execution timelines and whether the reforms introduced by the national oil company can translate into sustained production growth in the coming months.
