Nigeria’s Indigenous Oil Producers Emerge as Majority Operators Amid Policy Reforms

Nigeria’s oil and gas industry is experiencing a fundamental realignment as indigenous companies assume a dominant role in national production, a shift widely attributed to recent fiscal and regulatory reforms implemented by the federal government.

At a recent engagement between presidential energy advisers and the Independent Petroleum Producers Group (IPPG), industry leaders confirmed that Nigerian-owned operators now control more than 50 percent of the country’s oil and gas output. This development follows a wave of divestments by international oil companies and marks one of the most consequential transitions in the sector’s history.

The IPPG leadership noted that recent policy reforms have materially improved project economics, reduced regulatory friction, and enhanced the viability of long-term investments for local operators. These changes have helped address structural challenges that previously limited indigenous participation, including high operating costs, fiscal uncertainty, and limited access to commercially sustainable assets.

Analysts view the growing dominance of indigenous producers as a deliberate outcome of Nigeria’s broader energy strategy, aimed at deepening local capacity, retaining value within the economy, and building resilience in the upstream sector. The reforms have also helped stabilize the operating environment at a time when global capital for fossil fuel projects has become increasingly selective.

Government officials emphasized that sustained collaboration with indigenous producers will be critical to maintaining production levels, attracting new investment, and ensuring energy security. Engagement with local operators is expected to focus on improving access to finance, strengthening technical capacity, and aligning regulatory frameworks with global best practices.

As Nigeria navigates the dual pressures of energy transition and economic development, stakeholders argue that a competitive, investment-ready oil and gas sector—anchored by capable indigenous companies—will remain central to delivering long-term value, employment, and revenue for the country.