Nigeria’s energy sector has recorded a significant resurgence, with the number of active oil rigs increasing sharply from eight in 2021 to 69 by late 2025. This growth coincides with $8 billion in new investment, which government officials attribute to reforms under the Petroleum Industry Act (PIA).
Speaking at the 9th Nigeria International Energy Summit (NIES), Vice President Kashim Shettima, representing President Bola Tinubu, declared an end to “prolonged underinvestment.” He credited the PIA’s transparency measures and fiscal incentives for delivering the regulatory certainty long demanded by international oil companies, enabling fully digital and competitive licensing rounds that are rebuilding investor trust.
While crude oil output remains vital for immediate revenue, the government is strategically pivoting toward natural gas as the foundation for future growth. Current average daily gas production stands at 7.6 billion standard cubic feet (BSCFD), with domestic supply exceeding 2 BSCFD for the first time—a milestone aimed at powering local industry.
The administration’s “Project One Million” initiative targets 2.5 million barrels of oil per day by 2027 and gas production of 10 BSCFD by 2030. Gas is central to Nigeria’s “just transition” strategy, which seeks to create jobs while reducing emissions.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, broadened the discussion to continental energy security, calling the summit a “call to action” to eradicate energy poverty in Africa. He pointed to major projects like Shell’s $5 billion Bonga North and TotalEnergies’ $550 million Ubeta development as evidence of Nigeria’s investment readiness. The establishment of the African Energy Bank, headquartered in Nigeria, was highlighted as a mechanism to help the continent retain greater value from its hydrocarbon resources.
The summit, themed Energy for Peace and Prosperity: Securing Our Shared Future, attracted high-level participation, including the Presidents of Gambia and Equatorial Guinea, and leaders from the Nigerian National Petroleum Company Limited (NNPCL).
The rebound in drilling activity, coupled with major project sanctioning and a policy-driven focus on gas, signals a concerted effort to reposition Nigeria as a stable energy hub. The outcomes of this summit and the implementation of the PIA will be closely observed by international markets and African partners seeking to develop their own resources.
