Nigeria has achieved a major milestone in its energy sector, with local petrol production increasing from virtually zero in 2023 to approximately 48 million litres per day, the Federal Government has revealed.
The disclosure was made by Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during the Nigerian-British Chamber of Commerce Energy Day 2026 held in Lagos.
Speaking on the theme, “Energy in Nigeria: From Potential to Reality,” Verheijen said the country’s refining sector has undergone significant transformation, enabling domestic refineries to meet the bulk of Nigeria’s petrol demand for the first time in decades.
According to her, increased local refining has substantially reduced the nation’s dependence on imported fuel, helping to conserve foreign exchange and support the stability of the naira.
“For the first time in a generation, most of the petrol consumed in Nigeria is being refined locally,” she said.
She explained that imported petrol had long placed heavy pressure on Nigeria’s foreign exchange reserves, as each shipment required large amounts of dollars.
However, with domestic refining capacity improving, petrol import costs have dropped dramatically. She noted that fuel imports declined from about N2.3 trillion in the first quarter of 2025 to less than N90 billion during the same period a year later.
Verheijen stressed that reducing fuel import dependence not only strengthens Nigeria’s energy security but also contributes directly to currency stability, The News Edition reports.
“Less demand for foreign exchange to import fuel translates into reduced pressure on the naira. Energy security and currency stability are closely linked,” she stated.
Crude Oil Production and Investment Growth
The presidential adviser also highlighted improvements in Nigeria’s crude oil sector, noting that investor confidence has continued to recover.
She revealed that Nigeria’s crude oil and condensate production averaged 1.64 million barrels per day in 2025, representing an increase of roughly 400,000 barrels daily compared to 2023 levels.
According to her, this marks the highest onshore crude oil production recorded in nearly two decades.
Verheijen further disclosed that international oil company divestment transactions worth more than $4 billion have been successfully concluded.
She explained that the development has expanded indigenous participation in Nigeria’s onshore oil industry, while international oil majors increasingly focus on deepwater exploration and integrated gas projects.
She also noted improvements in pipeline operations and a significant decline in illegal refining activities across oil-producing regions.
“Every additional barrel produced contributes to government revenue, job creation, and economic growth,” she said.
Tinubu Administration’s Energy Reforms
Reflecting on the state of the energy sector when the current administration assumed office in 2023, Verheijen said the industry was facing severe challenges.
She cited unsustainable fuel subsidy payments, foreign exchange distortions, underperforming oil production, and mounting debt in the power sector as major obstacles confronting the economy.
According to her, the government responded by implementing key reforms, including the removal of fuel subsidies and adjustments to the foreign exchange system.
While acknowledging that the decisions were difficult, she said they were necessary to restore fiscal stability and attract investment.
Verheijen noted that total federation revenue increased significantly from approximately N12 trillion in 2023 to about N21 trillion in 2024, reflecting the impact of the reforms.
Despite the deregulation of the downstream petroleum sector, she added that the government has largely eliminated the widespread fuel shortages and long queues that previously affected consumers across the country.