The Federal Government has announced that Nigeria’s domestic petrol output has risen significantly, growing from virtually zero in 2023 to about 48 million litres per day.
The Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, made this known during the Nigerian-British Chamber of Commerce Energy Day 2026, held in Lagos. Her presentation was later made available in Abuja on Tuesday.
Speaking on the theme “Energy in Nigeria: From Potential to Reality,” Verheijen said the country was, for the first time in years, consuming more locally refined petrol than imported products.
She explained that the expansion of local refining capacity is closely linked to improvements in the value of the naira and broader economic stability.
According to her, increased domestic refining has reduced the heavy foreign exchange burden associated with fuel imports, which previously placed pressure on the economy.
She noted that petrol imports dropped sharply from about N2.3 trillion in the first quarter of 2025 to below N90 billion a year later, describing the shift as evidence of improved energy security.
Verheijen said energy reforms and currency stability are interconnected, stressing that reducing fuel import dependence strengthens the economy.
On crude oil and condensate production, she said output averaged 1.64 million barrels per day in 2025, marking an increase of about 400,000 barrels per day compared to 2023, and the highest onshore performance in two decades.
She also disclosed that more than $4 billion in divestment deals by international oil companies had been completed, a development that has boosted indigenous participation in onshore operations while allowing major firms to focus on deep-water and gas projects.
According to her, pipeline availability has improved significantly, while incidents of illegal refining have declined.
She added that higher crude output continues to support national revenue, employment generation, and overall economic stability.
Reflecting on the state of the sector in 2023, Verheijen said it was facing serious structural challenges, including unsustainable fuel subsidies, foreign exchange distortions, and declining investment confidence.
She noted that production was below potential at the time, while power sector debts were affecting the gas-to-power value chain, limiting efficiency across the industry.
She explained that the administration’s initial focus was to stabilise the sector and rebuild its foundations through key reforms.
According to her, measures such as fuel subsidy removal and exchange rate adjustments were necessary steps to restore fiscal stability.
She said the impact of the reforms is already evident, with federation revenue rising to about N21 trillion in 2024, up from approximately N12 trillion in 2023.
Verheijen added that despite deregulation, the government has managed to avoid the recurring nationwide fuel scarcity that previously characterised the downstream sector.