Nigeria’s indigenous oil producers have called for urgent reforms to capital access and fiscal frameworks, warning that structural barriers threaten to undermine recent gains in domestic energy production despite improved output figures and strengthening local ownership across the sector.
Adegbite Falade, chairman of the Independent Petroleum Producers Group, used his maiden address at the Nigeria International Energy Summit to press for “bold, coordinated action” to build what he termed a resilient and self-sustaining energy industry. The intervention comes as indigenous operators account for more than half of national oil production for the first time, marking a significant shift in the industry’s ownership profile.
Average liquids production climbed to approximately 1.64 million barrels per day in 2025, supported by what Falade described as strengthened policy measures and improved operational conditions. The milestone reflects years of gradual transfer of assets from international oil companies to local operators, a transition that has reshaped Nigeria’s upstream landscape but raised questions about financing capacity and technical capability.
Speaking before global dignitaries, including Gambian President Adama Barrow and senior representatives from the Gas Exporting Countries Forum and African Petroleum Producers Organisation, Falade acknowledged progress across Nigeria’s energy value chain. He cited expanding gas infrastructure, rising domestic refining capacity, and early signs of restored investor confidence following reforms under President Bola Tinubu’s administration.
However, the IPPG chairman emphasised that operational cost premiums, inadequate access to affordable long-term capital, and administrative inefficiencies continue to constrain industry participants. “Nigeria’s energy future must be defined by self-sufficiency, competitiveness, and collaboration,” Falade said, calling for accelerated infrastructure investment through public-private partnerships and streamlined regulatory processes.
The appeal for improved capital access reflects mounting pressure on indigenous producers who have assumed operatorships of aging assets requiring substantial investment for rehabilitation and enhanced recovery. Many local companies have struggled to secure project financing at competitive rates, facing higher borrowing costs than international counterparts due to perceived country and credit risks.
In the midstream segment, targeted funding support has advanced gas infrastructure projects, while major liquefied natural gas expansion efforts near completion. Domestic refining capability has strengthened with increased operational capacity from the Dangote refinery, Nigeria’s newest large-scale facility, beginning to reduce petroleum product imports.
Falade warned that without regulatory and fiscal stability, stronger security in producing regions, and competitive operating frameworks, recent momentum could stall. He urged stakeholders to move beyond raw hydrocarbon exports toward building an ecosystem that creates in-country value and strengthens GDP contribution.
“The future of our sector lies in generating in-country value that fuels economic growth,” the chairman stated, calling for an industry that delivers “real and lasting benefits” to Nigerian citizens through efficient governance and resilient operations.
The summit’s theme, Energy for Peace and Prosperity: Securing Our Shared Future, underscored energy security as foundational to African development. Falade called for collaboration across operators, regulators, service providers and investors to shape a sustainable trajectory for the continent’s energy transition.
IPPG, which represents indigenous exploration and production companies, reaffirmed alignment with national policy objectives and pledged continued partnership with government stakeholders to advance sector transformation. The group’s intervention signals growing assertiveness among local operators seeking policy support to consolidate their expanded role in Nigeria’s energy economy.
