Nigeria’s oil and gas industry is undergoing a transformative shift, with local oil companies now responsible for over 50 percent of the country’s crude oil production, according to a new report citing data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This milestone marks a significant transition from the former 40 percent share held by indigenous operators and highlights the growing influence of homegrown firms in Africa’s largest oil-producing economy.
The shift is largely attributed to a wave of divestments by international oil companies (IOCs) such as Shell, ExxonMobil, TotalEnergies, and ENI, who have exited onshore and shallow-water fields to focus on deepwater ventures. Their departure has opened a path for Nigerian-owned local oil firms to step in and scale operations, reflecting broader industry reforms under the Petroleum Industry Act (PIA) and a strategic national push for increased upstream investment.
The report noted that this growing local participation is not only significant but essential in achieving the Federal Government’s target to increase daily crude oil output by one million barrels next year.
“This shift signifies a new chapter in Nigeria’s oil and gas sector. Indigenous producers now control over half of national production and are central to the country’s strategy to boost output,” said Gbenga Komolafe, Chief Executive of the NUPRC.
Among the leading contributors to this transition is Green Energy International Limited, which recently commenced operations at Nigeria’s first fully indigenous onshore crude export terminal—Otakikpo Terminal—in OML 11 near Port Harcourt. The terminal, with a 360,000 barrels-per-day capacity, exported its maiden cargo earlier this week, handled by Shell’s trading division. The facility is expected to unlock production from over 40 marginal fields across the Niger Delta region.
Similarly, Conoil Producing Limited recorded a milestone by exporting the first shipment of its newly branded Obodo crude blend from its OML 150 block, with the crude lifted by Oando Trading, a subsidiary of Oando Plc. The deal follows Oando’s acquisition of ENI’s divested assets, part of a broader trend of local companies snapping up formerly IOC-controlled fields.
Another significant player is Renaissance Africa Energy, a Nigerian-led consortium that acquired Shell’s onshore assets. The company has announced a $15 billion investment plan over the next five years aimed at ramping up oil and gas output, particularly once a major new domestic pipeline becomes operational.
Meanwhile, Seplat Energy, which is finalizing its takeover of ExxonMobil’s shallow-water operations, has unveiled aggressive expansion plans. Speaking at the company’s recent AGM, CEO Roger Brown said Seplat intends to reopen over 400 shut-in wells and invest $320 million in new drilling campaigns and infrastructure, with a target of raising output to 140,000 barrels per day.
“We’re committed to reviving shut-in wells, expanding gas infrastructure, and stabilising Nigeria’s energy output,” Brown stated.
Industry analysts say the rise of indigenous operators represents a structural evolution in Nigeria’s oil sector, offering both opportunities and challenges.
“Local players have shown ambition and technical capacity, but they also face steep hurdles, including pipeline vandalism, oil theft, regulatory bottlenecks, and community relations,” said Mikolah Judson, energy analyst at Control Risks.
“These challenges increase operational costs and can deter new investments unless addressed comprehensively.”
Despite these concerns, stakeholders argue that the growing dominance of local firms could reverse Nigeria’s recent production declines and support long-term energy security.
The NUPRC recently reported that Nigeria produced around 1.42 million barrels per day in May 2025, still below the OPEC quota. But with increasing indigenous participation and enhanced infrastructure, optimism is growing that the country can meet and even exceed its targets in the coming year.
For many industry observers, the changing landscape is a testament to the resilience and ambition of Nigerian oil entrepreneurs. With the right regulatory support, infrastructure investment, and security guarantees, experts believe the indigenous-led oil sector could emerge as the cornerstone of Nigeria’s energy future.