Sopuruchi Onwuka

Independent crude oil and natural gas producing companies in Nigeria have called on African governments to urgently move away from inherited, export-focused petroleum models and instead design energy systems rooted in economic growth, industrial development, and national resilience.

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The call was made by Chairman of the Independent Petroleum Producers Group (IPPG), Engr. Adegbite Falade, at the ongoing Nigeria International Energy Summit (NIES) in Abuja.

Falade said emerging global conflicts, shifting geopolitical alliances, and rising energy insecurity have made it imperative for developing economies to prioritise energy security and economic resilience. He noted that global energy systems are being rapidly reshaped by these forces, stressing that energy shocks in one region inevitably affect others.

“Energy has no borders,” Falade said, adding that Africa and Nigeria are not insulated from global disruptions.

He said the theme of the 2026 NIES, “Energy for Peace and Prosperity: Securing Our Shared Future,” underscores the need for African nations to rethink how natural resources are translated into sustainable development that improves living standards for a fast-growing population.

According to him, securing peace and prosperity requires Africa—and Nigeria in particular—to take ownership of its energy destiny by charting an independent development path that prioritises in-country value creation over raw resource exports.

Falade stated that Nigeria must build an energy industry capable of sustaining itself, delivering long-term value to citizens, and growing through collaboration rather than fragmentation. He said the future of the sector lies in moving beyond the traditional model of crude extraction and export toward value-added activities that strengthen the economy and expand GDP contribution.

He noted that such an industry must be efficient, competitive, well-governed, and resilient, adding that scale can only be achieved through deliberate collaboration and, where necessary, consolidation among operators, service companies, regulators, and investors.

Reviewing sector performance since the 2025 edition of the summit, Falade said Nigeria’s oil and gas industry has recorded measurable progress across the value chain. In the upstream sector, average liquids production rose to about 1.64 million barrels per day in 2025, compared with 1.56 million barrels per day in 2024, with peak production reaching 1.77 million barrels per day.

He attributed the increase to improved export pipeline availability, reduced crude losses, and stronger output from indigenous producers. For the first time, he noted, independent and indigenous companies now account for more than 50 percent of national oil production.

Falade also highlighted the approval of major upstream mergers and acquisitions by the Federal Government, which he said has strengthened local ownership and enhanced operational control among Nigerian producers.

In the midstream segment, he said more than 16 companies benefited from support under the Midstream and Downstream Gas Infrastructure Fund, facilitating the development of CNG, mini-LNG, and LPG projects nationwide. He added that domestic gas utilisation expanded significantly through the rollout of CNG refuelling stations and gas-powered transport systems, while work continued on critical infrastructure such as the AKK and OB3 pipelines. The NLNG Train 7 project, he noted, has reached about 80 percent completion.

On the downstream side, Falade said the gradual ramp-up of the 650,000 barrels-per-day Dangote Refinery is already reshaping domestic fuel supply, reducing import dependence and boosting local refining capacity.

He also commended recent policy and regulatory reforms, including the introduction of the Upstream Petroleum Operations Cost Efficiency Incentives Order 2025, which offers performance-based tax credits to operators that reduce costs. He praised the appointment of experienced professionals to lead the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), describing it as a signal of the government’s commitment to strong and effective regulation.

Despite the progress recorded, Falade said significant challenges remain and outlined key priority areas requiring sustained attention.

These include reducing bureaucracy and streamlining industry fees to address Nigeria’s estimated 40 percent cost premium compared with similar non-shale jurisdictions; strengthening security in the Niger Delta to curb rising operating costs; accelerating public-private partnerships to expand midstream infrastructure; improving access to long-term, affordable capital, including effective deployment of the African Energy Bank; and ensuring policy stability through full and consistent implementation of the Petroleum Industry Act.

Falade concluded that Nigeria must build an oil and gas industry that is self-sustaining and capable of delivering lasting value to its citizens. He said achieving this goal would require bold, coordinated actions across the energy sector, adding that IPPG remains fully committed to supporting the Federal Government’s reform agenda.

The address was delivered on February 3, 2026, at the 9th edition of the Nigeria International Energy Summit in Abuja.