The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bashir Bayo Ojulari, has expressed strong optimism that Nigeria will achieve an oil production target of 1.8 million barrels per day in 2026, a key benchmark expected to stabilise projected revenue in the federal budget currently before the National Assembly.
Ojulari disclosed this on Sunday while briefing State House correspondents in Lagos after meeting with President Bola Ahmed Tinubu, assuring that ongoing reforms in the oil and gas sector are beginning to yield measurable results.
He also reiterated that consumers would ultimately benefit from increasing competition in the downstream petroleum sector, even as the market experiences temporary tensions arising from structural changes.
PIA Separated Regulation From Business
Ojulari urged Nigerians to understand that the Petroleum Industry Act (PIA) fundamentally altered the structure of the oil and gas sector by separating regulation from commercial operations.
“The PIA did something fundamental. It separated regulation from business,” he said.
According to him, under the post-PIA framework, NNPC Ltd is no longer a regulator, but a fully commercial entity incorporated under the Companies and Allied Matters Act (CAMA).
“We are a CAMA company that must compete profitably,” Ojulari said, adding that NNPC Ltd no longer receives allocations from the Federation Account and must now operate like any other business enterprise.
He explained that regulatory responsibilities now rest with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while NNPC Ltd focuses strictly on oil and gas production, trading and investment.
Market Tensions Temporary — Ojulari
Addressing the ongoing volatility in the downstream petroleum market, Ojulari described the situation as a temporary adjustment phase inherent in a newly liberalised system.
“Competitiveness is not easy. We are in the early stages of a willing-buyer, willing-seller market,” he said.
He noted that the entry of major domestic refining capacity—particularly the Dangote Refinery—has significantly altered market dynamics.
“By the time you have a refinery like Dangote in-country, which we did not have before, the market will be impacted,” Ojulari said.
“It is a great thing to have a major refinery in Nigeria supplying West Africa and other parts of the world. What we need to do is walk through this reality together so that market forces can stabilise and everyone can be okay.”
Despite the changes, Ojulari assured that NNPC Ltd would continue to act as a ‘supplier of last resort’, working closely with key downstream players, including Dangote Refinery, to ensure steady product availability nationwide.
Nigerians Will Benefit From Competition
Ojulari expressed confidence that as reforms mature and stakeholders adjust, the benefits of competition would become more evident to ordinary Nigerians.
“At the end of the day, Nigerians on the streets are going to be the beneficiaries. Where there is healthy competition, buyers are the ultimate beneficiaries,” he said.
He acknowledged that the reform process has been difficult but necessary, adding that with President Tinubu’s backing, NNPC Ltd has begun implementing significant internal structural improvements.
Oil, Gas Production Records Gains in 2025
Providing an update on production performance, Ojulari revealed that Nigeria’s oil output increased from about 1.5 million barrels per day in 2024 to over 1.7 million barrels per day in 2025.
“Last year, we were producing about 1.5 million barrels per day. This year, we are reaching over 1.7 million barrels per day in oil production,” he said.
He attributed the improvement to enhanced security in the Niger Delta and a reduction in crude oil theft, supported by structural reforms within NNPC Ltd.
Gas production also recorded growth, rising from 6.5 billion standard cubic feet per day to over seven billion standard cubic feet per day, according to the NNPC boss.
AKK Pipeline Milestone
Ojulari disclosed that NNPC Ltd has successfully completed the welding of the main line of the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) gas pipeline, including the long-delayed crossing of the River Niger.
“We successfully completed the welding of the main line of the AKK pipeline. We were also able to cross the River Niger, which had been a struggle for many years,” he said.
“By completing the main line, we can now begin to make all the connections in the early part of next year. This will bring gas in its full form to the northern part of Nigeria.”
He listed Kaduna, Kano, Ajaokuta and Abuja as major beneficiaries of the project, noting that increased gas supply would drive industrialisation.
“We will begin to see industrial parks, gas-based industries, fertiliser plants and power generation,” Ojulari said.
Investment and Production Targets
Ojulari disclosed that President Tinubu charged NNPC Ltd to focus on attracting over $30 billion in additional investment by 2030 and raising oil production to two million barrels per day by 2027.
He added that NNPC Ltd is targeting at least 1.8 million barrels per day in 2026, alongside further growth in gas production.
“I came to update Mr President on the end-of-2025 performance of NNPC and to discuss our strategic priorities for 2026. It was also an opportunity to thank him for the inspiration he has given the new NNPC management and board during this challenging period of transformation,” Ojulari said.
Joshua Chinonye ✔
Joshua Chinonye is the Energy Editor at Naija247news, covering Nigeria’s oil, gas, and power sectors. He reports on energy policy, market trends, and sustainability with a focus on informing public discourse and decision-makers.
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