President Bola Tinubu has ordered the immediate reactivation of dormant oil assets across Nigeria as part of a renewed push to raise the country’s crude oil production and revenues.
The directive was relayed to oil and gas operators by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the 2025 Nigeria Oil and Gas Energy Week, currently ongoing in Abuja.
According to Lokpobiri, reviving inactive assets is essential for reversing declining output and attracting sustainable investment in the oil sector.
“To sustain growth in our oil industry, we must first sustain our investment in capacity building,” the minister said.
“The recent wave of asset divestments and the subsequent increase in production volumes underscore a critical truth: we have the indigenous capacity to grow this industry.”
Lokpobiri emphasised that the president’s directive must be taken seriously.
“This is not just a rhetorical challenge, it is a call to action,” he said.
“In my address, I urged all operators to ensure every asset under them is active and productive. This is not a suggestion but a directive from President Bola Ahmed Tinubu, and it must be treated with the urgency and gravity it deserves.”
The federal government has set an ambitious target of producing 2.1 million barrels of crude oil per day, with a projected revenue of ₦84.67 trillion in the 2025 budget—based on an oil benchmark price of $75 per barrel. However, Nigeria’s actual production has consistently fallen short of the target, averaging around 1.4 million barrels per day.
In May 2025, oil and condensate production reached 1.63 million bpd, up slightly from 1.61 million bpd in April. Still, the Nigerian Upstream Petroleum Regulatory Authority reported a production dip to 1.45 million bpd in the same month.
Despite recent improvements in pipeline security, including the Nigerian National Petroleum Company Limited’s (NNPCL) announcement that five key crude evacuation pipelines achieved 100 per cent operational availability between May and June, challenges such as theft, vandalism, and terminal shutdowns continue to limit production.
“These developments show we are making progress, but we must do more,” Lokpobiri said. “We must do something new, something bold, something that directly translates to increased production.”
The minister noted that Nigeria’s crude oil reserves stood at 37.28 billion barrels as of January 1, 2025—including 31.44 billion barrels of proven and probable crude and 5.84 billion barrels of condensates—highlighting the country’s untapped potential.
Lokpobiri also pointed to improved financing prospects following Nigeria’s fulfilment of its obligations toward the establishment of the African Energy Bank (AEB), which is expected to enhance access to capital for investors.
“This new financing window is expected to catalyse robust economic growth, not just for the energy sector, but for our nation as a whole,” he added.
Currently, hydrocarbons in Nigeria are extracted from 323 developed fields via 265 processing stations, and exported through 31 terminals connected by over 5,200 kilometers of pipelines. These infrastructures serve both primary operators and third-party producers.
While NNPCL reported ₦6.008 trillion in revenue for May 2025—a slight increase from April’s ₦5.972 trillion—the firm acknowledged that production still lags behind targets, despite operational milestones in pipeline availability.
President Tinubu’s directive comes at a critical time as the administration intensifies efforts to stabilise the oil sector, drive investment, and restore Nigeria’s standing in the global energy market.
