Nigeria’s crude oil production is gaining momentum as improved security around oil facilities helps reduce crude theft and creates a more favourable environment for investment in the petroleum industry.
President Bola Tinubu highlighted the decline in oil theft among the developments recorded under his administration during his October 1, 2026 Independence Day address.
He said Nigeria’s economy had grown by more than four per cent in 2026, while inflation had fallen considerably from its previous peak.
Tinubu also pointed to improvements in the country’s foreign reserves and foreign exchange market, as well as stronger non-oil export earnings.
The decline in crude theft has been accompanied by increased efforts to secure pipelines and other petroleum infrastructure in the Niger Delta.
Tantita Security Services Nigeria Limited, led by Government Ekpemupolo, popularly known as Tompolo, is among the contractors involved in protecting oil assets in the region.
The company works alongside security agencies to monitor pipelines, identify illegal connections and detect activities linked to crude theft and illegal refining.
Tantita has also deployed surveillance equipment, including cameras, thermal imaging systems, motion sensors and remote monitoring technology, as part of efforts to improve the protection of oil infrastructure.
The improved security situation is coming at a time when the Federal Government and oil companies are pushing to increase production and attract fresh investment into Nigeria’s upstream sector.
A major development is the renewed progress on the Bonga Southwest/Aparo deepwater project in Oil Mining Lease 118.
The Nigerian National Petroleum Company Limited and its partners recently signed agreements aimed at moving the project closer to a Final Investment Decision.
The development is expected to attract about $21bn in investment and deliver peak production of around 175,000 barrels of crude oil per day, alongside 140 million standard cubic feet of gas daily.
The project partners include Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited.
To further encourage investment in deepwater projects, the Federal Government has introduced the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The measure is aimed at improving the competitiveness of Nigeria’s deepwater fiscal regime and encouraging oil companies to commit more capital to new developments.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the increase in oil production and improved security in oil-producing communities had contributed to Nigeria’s broader economic recovery.
He said higher crude production had supported the country’s external reserves and strengthened the Central Bank of Nigeria’s efforts to stabilise the naira.
Yusuf also identified reforms in the downstream sector as another factor supporting investment in the petroleum industry, particularly the development of the Dangote Refinery.
Meanwhile, security efforts in the Niger Delta have increasingly included community-based initiatives designed to provide alternative sources of income.
Tantita has said its operations provide direct employment for about 136,000 people involved in pipeline-related activities, while indirect employment is estimated at more than 300,000.
The company has also launched an agricultural initiative focused on rice production to encourage communities previously involved in illegal oil activities to embrace alternative livelihoods.
Stakeholders have continued to call for stronger cooperation among government agencies, security contractors, oil companies and host communities to sustain the reduction in crude theft.
With improved security, renewed upstream investment and measures to make oil projects more attractive to investors, Nigeria is seeking to sustain higher crude production and increase oil revenue.
