Local oil producers in Nigeria have renewed calls for reforms that would improve access to financing for upstream operations, cautioning that persistent funding challenges could undermine production growth achieved in recent years.
Speaking at the Nigeria International Energy Summit, the chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, said indigenous operators need supportive fiscal policies and reliable financing structures to sustain operations and expand investment across the sector.
Falade noted that Nigerian-owned companies now play a dominant role in crude oil production, accounting for over half of national output following the exit of several international oil companies from onshore and shallow-water assets. He added that average liquids production reached roughly 1.64 million barrels per day in 2025, reflecting gradual improvements in the operating environment.
Despite these gains, Falade said many local producers continue to struggle with high financing costs and limited access to long-term capital. According to him, indigenous firms have inherited mature oil fields that require significant funding for asset rehabilitation and production optimisation, yet often face tougher borrowing conditions due to perceived risks.
He acknowledged improvements across the energy value chain, including progress in gas development, growing domestic refining capacity, and signs of renewed investor confidence following policy reforms introduced by the current administration. However, he stressed that operational costs, regulatory delays, and administrative hurdles remain major concerns for industry players.
The IPPG chairman called for deeper collaboration between the public and private sectors, as well as clearer and more stable regulatory frameworks to attract both local and foreign investment. He also emphasised the importance of addressing security challenges in oil-producing areas to reduce disruptions and operating expenses.
In the midstream segment, Falade said targeted financing initiatives have helped advance gas infrastructure projects, while major liquefied natural gas expansions are approaching completion. On the downstream side, increased production from the Dangote refinery has begun to ease Nigeria’s dependence on imported fuel products.
Falade warned that inconsistent policies and weak institutional coordination could stall recent progress. He urged stakeholders to prioritise value addition within the country rather than relying solely on crude oil exports, noting that stronger local value chains would support economic growth and job creation.
The summit, held under the theme Energy for Peace and Prosperity: Securing Our Shared Future, focused on energy security as a foundation for Africa’s development. Falade called on regulators, investors, service providers, and operators to work together to build a sustainable and competitive energy industry.
IPPG reaffirmed its commitment to partnering with government agencies to support reforms aimed at strengthening indigenous participation and ensuring long-term growth in Nigeria’s energy sector.
