Nigeria’s indigenous oil and gas companies are playing a growing role in strengthening the country’s crude production, as their share of total output has risen to about 27%, up from roughly 12% a decade ago.

This was highlighted in a new industry outlook by energy consultancy Wood Mackenzie, which examined recent developments in Nigeria’s upstream oil sector and the increasing influence of local operators.

According to the report, Nigeria’s crude production has declined over the years from above 2 million barrels per day to about 1.6 million barrels daily. However, indigenous firms are helping to stabilise and gradually improve output through new investments and field development projects.

The consultancy noted that companies such as SEPLAT Energy, Oando, and Renaissance Africa Energy are leading the push, especially after acquiring assets previously operated by international oil majors.

These firms are now planning a combined investment of about $35 billion aimed at expanding both greenfield and brownfield projects, with the goal of increasing production capacity and strengthening their position in the sector.

Wood Mackenzie attributed the rise of local players to a combination of asset divestments by global oil companies, supportive government policies, and improved technical expertise within Nigeria’s energy industry.

Despite the growth, the report stressed that financing remains a major challenge for indigenous operators, especially given the high-risk nature of ageing and marginal oilfields.

It also noted that Nigeria remains one of the costliest oil-producing environments in Africa, with operating costs estimated at around $15 per barrel, which continues to limit investment appetite.

The report concluded that while local firms are helping to revive the sector and support Nigeria’s long-term production target of 3 million barrels per day by 2030, further improvements in security, infrastructure, and regulatory efficiency will be critical to sustaining growth.