Nigeria’s local petrol production has increased from virtually zero in 2023 to about 48 million litres per day, according to the Federal Government. The development marks a significant shift in the country’s energy sector as more of the petrol consumed by Nigerians is now refined domestically.
The disclosure was made by the Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, 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 recent reforms in the oil and gas sector are beginning to deliver measurable outcomes. She noted that for the first time in decades, the majority of petrol used in Nigeria is being produced locally, reducing dependence on imports and strengthening the country’s economic position.
According to Verheijen, the growth in local petrol production has significantly reduced the demand for foreign exchange previously required for fuel imports. She stated that petrol import costs declined sharply from about N2.3 trillion in the first quarter of 2025 to less than N90 billion one year later.
“This is where energy reform meets the strength of the naira,” she said.
“For decades, every cargo of imported petrol was a standing demand for scarce dollars, a structural drain that weakened our currency.”
She explained that lower fuel import bills have helped reduce pressure on the naira, adding that energy security and currency stability are closely linked. On crude oil output, Verheijen said 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.
She also revealed that approximately $4 billion worth of international oil company divestments had been concluded, allowing greater indigenous participation in onshore operations while international firms focus on deepwater and gas projects. The presidential adviser added that pipeline uptime has improved significantly, while illegal refining activities have reduced across producing areas.
Verheijen said the administration inherited an energy sector facing major challenges in 2023, including unsustainable fuel subsidies, foreign exchange distortions and declining production levels. According to her, the government responded by removing fuel subsidies and implementing exchange rate reforms to restore fiscal stability.
She noted that these measures contributed to a rise in federation revenue from approximately N12 trillion in 2023 to about N21 trillion in 2024. The adviser described the reforms as difficult but necessary steps toward rebuilding the sector and improving long-term sustainability.
The increase in local petrol production is expected to strengthen Nigeria’s energy security, reduce reliance on imported fuel and support currency stability through lower foreign exchange demand. Industry observers also see the development as a potential boost for investment, job creation and broader economic growth as refining capacity continues to expand.
The Federal Government says rising local petrol production is one of the clearest indicators of progress in Nigeria’s energy sector reforms. Officials maintain that continued investment, improved production levels and stronger refining capacity will help deliver greater economic value and long-term energy security for the country.
