Indigenous Oil Firms Dominate Nigeria’s Production After 70 Years of Foreign Control
For the first time in seven decades, Nigerian indigenous oil companies have overtaken international giants in national oil production, now contributing over 50% of the country’s output. This historic milestone reflects a dramatic shift in Nigeria’s energy sector, fueled by an accelerating wave of asset divestments from multinational oil companies such as Shell, ExxonMobil, and Eni to local players like Seplat, Oando, and Renaissance.
Officials say these divestments have injected an additional 200,000 barrels per day into the national output, helping to reverse years of production decline caused by crude theft, pipeline vandalism, and underinvestment. “This represents a historic transformation in the structure and control of Nigeria’s oil and gas sector,” said Adegbite Falade, chairman of the Independent Petroleum Producers Group, during the Nigerian International Energy Summit in Abuja.
Renaissance, one of the main beneficiaries of these divestments, has doubled its production, showcasing the capacity of local operators to efficiently manage assets previously controlled by multinational corporations. Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized that these transactions are not just transfers of equipment but transfers of confidence, ownership, and operational capability—factors critical to Nigeria’s energy independence.
The rise of indigenous companies has been supported by regulatory reforms and the implementation of the Petroleum Industry Act of 2021, along with improved security measures and better pipeline infrastructure. Industry leaders note that while international firms retreat from onshore operations to focus on deepwater projects and renewable energy, local companies face the dual challenge of managing complex operational environments while maintaining competitiveness through access to long-term capital.
Beyond economics, this shift carries geopolitical significance for Africa’s largest oil exporter. Increased indigenous control not only strengthens Nigeria’s domestic energy governance but also enhances gas production, supporting the country’s goal to monetize untapped reserves and become a regional energy hub. Analysts see this moment as a turning point that could define the future of Nigeria’s oil and gas sector for decades to come.
source: Business day