The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has disclosed that the United States, Europe and countries in the Middle East are increasingly seeking Nigerian crude oil, but the country does not yet have sufficient production to meet the growing international demand.

Lokpobiri vented this on Wednesday in Abuja at the ongoing Nigeria Oil and Gas Energy Week, adding that Nigeria’s improving oil output has renewed global interest in its crude.

The situation is compounded because of growing complaints from local refiners that they are not getting enough domestic feedstock for their plants.

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According to Lokpobiri, “The pressure is even more on me because of what has happened in the Gulf region.”

He pointed out that there is increasing demand for Nigerian crude from across the world. “I receive delegations from across the world, from the USA, from Europe, and from the Middle East. Everybody comes to me because they want to do business with Nigeria. They want to buy Nigerian oil. Unfortunately, we don’t have enough to sell to them,” Lokpobiri said.

He, however, assured prospective buyers that the Federal Government was implementing policies aimed at significantly increasing crude production over the next few years.

“But I promise them that in the next few years, Nigeria will be able to increase our production through the ambitious programmes we are pursuing, and we will be able to meet some of those obligations to those countries,” he added.

The minister disclosed that Nigeria’s crude oil production, including condensate, has risen above 1.8 million barrels per day, compared to about one million barrels per day when the current administration assumed office in 2023.

He cited the latest weekly production report submitted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as indicating that the country is now producing more than 1.8 million barrels daily.

“When I became minister in 2023, the president told me it was unacceptable for Nigeria to be producing one million barrels per day. I made a commitment that we would remove the bottlenecks and work together as a team to change the story. Today, the latest report from NUPRC shows we are doing over 1.8 million barrels per day, inclusive of condensate,” he said.

Despite the improvement, Lokpobiri insisted that the current output remains inadequate, maintaining that Nigeria has the capacity to return to its previous production peak of 2.5 million barrels per day.

“I’ve also told them that 1.8 million barrels is not enough. We’ve done 2.5 million barrels in this country before, so we can do it again. What we need is to work together under the right circumstances,” he stated.

The minister attributed the production recovery to renewed investment in the upstream sector, revealing that the number of active drilling rigs has increased from about 14 in 2023 to more than 60. “That is what will guarantee future growth in the industry. This is where the new barrels will come from,” he said.

Lokpobiri also credited President Bola Tinubu’s approval of the divestment of onshore assets by international oil companies for boosting indigenous participation in the sector.

He disclosed that indigenous operators, including Renaissance Africa Energy, Seplat Energy and Oando, now account for more than 60 per cent of Nigeria’s daily crude production following their acquisitions of assets previously owned by Shell, ExxonMobil and ENI.

“Today, the independents account for over 60 per cent of our daily production of 1.8 million barrels per day. They are just starting. This is only the beginning of what patriotic Nigerian companies can do,” he said.

According to him, the divestments have also enabled the international oil companies to concentrate on deepwater operations, where they possess stronger technical expertise, while opening fresh opportunities to grow Nigeria’s reserves and production.

Lokpobiri also disclosed that Renaissance had recorded a significant offshore oil discovery in OML 74 following an aggressive exploration campaign, describing the development as further evidence that sustained exploration would help Nigeria unlock additional reserves and strengthen future production.

Oil prices soared and stock markets slid Wednesday after US President Donald Trump said the ceasefire with Iran was over, following renewed strikes in the Middle East.

The latest bout of fighting was sparked by Iranian attacks on ships in the vital Strait of Hormuz shipping route.

Trump said at a NATO summit in Turkey the ceasefire was “over” but left the door open to more talks.

International benchmark Brent North Sea crude jumped more than five percent to around $78 a barrel.

The main US contract, West Texas Intermediate, also rallied five percent.

In Europe, Paris and Frankfurt shed around two percent while London was down nearly 1.5 percent around midday.

“Geopolitical risks are rising” for markets, noted Kathleen Brooks, research director at trading group XTB.

The US launched extensive strikes on Iran this week following attacks on ships in the strait, triggering a wave of reprisals against American bases in the Gulf.

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Washington also revoked a temporary sanctions waiver for Iranian oil.

Brooks added that “for the Brent crude oil price to extend gains above $80 per barrel, we would need to see another US naval blockade of the Strait of Hormuz, which would stop Iran from selling its oil and cause a major escalation in tensions”.

Equities in Asia also suffered, with the geopolitical tensions coming on top of a retreat from the tech sector on concerns over the eye-watering sums being invested in AI.

Seoul’s Kospi — which has been Asia’s poster child for the tech rally — sank more than five percent and has lost more than 20 percent since hitting a record high last month.

Samsung took another hit following a rout Tuesday that came despite the firm forecasting a roughly 19-fold jump in second-quarter operating profit from a year earlier on the back of strong AI chip demand.

The company and rival SK hynix both tumbled around six percent.

“Investors have been spooked in recent weeks by fears of excessive spending in the AI world and rich valuations in parts of the tech space, causing widespread profit-taking,” said Dan Coatsworth, head of markets at AJ Bell.

There were losses also in Tokyo and Shanghai.

However, Hong Kong rose three percent as traders chased beaten-down Chinese tech stocks, with Alibaba piling on more than 12 percent, and JD.com and Tencent each up almost four percent.

The dollar gained against its peers as the prospect of another hit to Middle East oil supplies fuelled concerns that inflation could remain elevated for longer than feared, putting pressure on the Federal Reserve to hike interest rates.

Key figures around 1100 GMT
Brent North Sea Crude: UP 5.1 percent at $77.93 a barrel

West Texas Intermediate: UP 5.0 percent at $73.95 a barrel

London – FTSE 100: DOWN 1.4 percent at 10,516.16 points

Paris – CAC 40: DOWN 2.0 percent at 8,265.75

Frankfurt – DAX: DOWN 2.1 percent at 24,929.06

Seoul – Kospi: DOWN 5.4 percent at 7,246.79 (close)

Tokyo – Nikkei 225: DOWN 2.1 percent at 66,819.05 (close)

Hong Kong – Hang Seng Index: UP 3.0 percent at 24,199.46 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,970.88 (close)

New York – Dow: DOWN 0.3 percent at 52,925.15 (close)

Euro/dollar: DOWN at $1.1406 from $1.1415

Pound/dollar: DOWN at $1.3344 from $1.3360

Dollar/yen: UP at 162.49 yen from 162.09 yen on Tuesday

Euro/pound: UP at 85.49 pence from 85.44 pence

AFP

Indigenous oil producers have warned that Nigeria’s upstream petroleum sector is being weighed down by more than 270 different taxes, fees and statutory levies.

They maintain that the multiplicity of charges is beginning to erode the investment gains recorded under the Petroleum Industry Act (PIA) despite renewed investor confidence in the industry.

The warning came on Tuesday at the opening ceremony of the 2026 NOG Energy Week in Abuja, where industry leaders also celebrated Nigeria’s admission into the International Energy Agency (IEA) as its newest Association Country, describing the development as a major endorsement of the country’s ongoing energy reforms and growing influence in global energy diplomacy.

The 25th edition of NOG Energy Week, marking the conference’s silver jubilee, is themed, “Advancing Energy Ambitions for Competitive & Resilient Economies.”

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Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, while delivering the industry’s keynote address, said the country’s fiscal regime had become one of the biggest threats to sustaining investment inflows into the oil and gas sector.

According to him, although President Bola Tinubu’s administration has introduced sweeping reforms that have restored investor confidence and improved crude oil production, the burden of over 270 taxes and levies imposed by different government agencies risks offsetting the benefits of the PIA.

Falade said, “A Shift in Government Posture: From Collector to Catalyst, as we chart a path forward, we must confront a challenge that continues to erode industry-wide competitiveness – the sheer weight and multiplicity of fees, levies, and statutory charges imposed across the value chain.

“Today, the Nigerian oil and gas industry remains the most taxed and levied in the country, and perhaps globally, with over 270 separate fees, taxes and levies. These fees from multiple agencies and the cumulative burden threaten to outpace fiscal incentives introduced under the Petroleum Industry Act to attract and retain investment.

“For smaller producers and operators of mature assets with thinner margins, this burden is a direct threat to project viability, investment decisions, and in some cases, asset abandonment. We therefore urge the government to undertake a comprehensive harmonisation of all fees and levies across all agencies to eliminate duplication, ensure transparency in how these charges are computed and applied, and align the overall fiscal burden with the incentive-driven spirit of the PIA.

“A predictable, streamlined, and globally competitive cost environment is a prerequisite for the very growth, job creation, and production gains this administration seeks to achieve.”

Despite the concerns, the IPPG chairman commended the Federal Government for implementing reforms that have revived the industry’s investment outlook.

He said Nigeria had recorded a remarkable recovery in crude oil production from levels below one million barrels per day a few years ago to an average of about 1.6 million barrels daily between January and May this year, noting that May production exceeded Nigeria’s OPEC quota for the first time in almost one year.

Falade added that the administration had attracted more than 5bn Bonga North project; the 18.2bn were approved in 2025 alone, unlocking about 1.4 billion barrels of crude oil and 5.4 trillion cubic feet of gas.

“Mr President, on behalf of indigenous producers, thank you for your unyielding commitment towards building a sustainable oil and gas industry. The collaborative efforts of government, regulators, security agencies, host communities and operators are yielding the desired results,” he stated.

Falade, however, cautioned that Nigeria had repeatedly failed to take full advantage of geopolitical disruptions because of inadequate production capacity and delayed investments.

He recalled that the Russia-Ukraine war created huge opportunities for alternative gas suppliers to Europe while the recent tensions involving the United States, Iran and the wider Middle East pushed global crude prices significantly above Nigeria’s budget benchmark.

According to him, Nigeria could not maximise the resulting revenue opportunities because of production constraints. “The lesson from both crises is the same – the next geopolitical shock is not a question of if, but when. We must borrow a leaf from the Dangote Refinery by prioritising upfront investment in potent capacity.

“We must see infrastructure not just as an economic asset but as a strategic national shield. It is therefore imperative to build the partnerships, capital and readiness today that enable us to seize tomorrow’s opportunity rather than watch it pass us by once again,” he added.

The IPPG chairman also called for a comprehensive review of the PIA five years after its implementation, arguing that the law should be strengthened by incorporating the various presidential directives and executive orders introduced since its enactment.

He also warned that the industry was facing a growing manpower crisis following the retirement of experienced professionals and the wave of international oil company divestments, stressing that operators must significantly increase investments in training the next generation of industry professionals.

Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described Nigeria’s recent admission into the International Energy Agency as one of the country’s biggest diplomatic achievements in the global energy sector.

According to the minister, the country’s admission as an Association Country on July 2 makes Nigeria the first member of the Organisation of the Petroleum Exporting Countries to establish such a partnership with the IEA and the sixth African nation to attain the status.

Ekpo said the development reflects growing international confidence in Nigeria’s reform agenda and strengthens the country’s position in shaping global conversations on energy transition.

He said, “Complementing this, on July 2, 2026, the International Energy Agency officially admitted Nigeria as its newest Association Country. As the first OPEC member to partner with the IEA and its sixth African Association member, Nigeria is uniquely anchoring a balanced global dialogue, ensuring equitable energy transitions while defending the right of developing nations to responsibly harness their gas assets.

“Our progressive steps have recently resonated on the global stage, elevating Nigeria to the pinnacle of global energy diplomacy. Nigeria has proudly assumed the Presidency of the 2026 Gas Exporting Countries Forum Ministerial Meeting alongside the election of Nigeria’s Dr Philip Mshelbila as the GECF Secretary-General. This dual leadership reflects international confidence in our technical expertise and policy vision.”

The minister said the Federal Government’s reforms, backed by the PIA and subsequent executive orders signed by President Tinubu, had created a more stable, transparent and competitive investment climate for gas development.

He noted that the reforms had shortened contracting timelines, introduced targeted fiscal incentives for non-associated gas projects, removed bureaucratic bottlenecks and restored the commercial viability of deep-water gas developments.

“Our message to the global investment community is unified and resolute: Nigeria is open for business, and we have established a stable, competitive and highly predictable investment environment,” Ekpo stated.

He added that the government’s long-term strategy was to transform Nigeria from a country that merely possesses vast gas reserves into one powered by natural gas, saying the Decade of Gas initiative was driving investments in gas processing, pipelines, fertiliser production, petrochemicals, power generation and compressed natural gas transportation.

According to him, major infrastructure projects, including the Ajaokuta-Kaduna-Kano and OB3 gas pipelines, alongside the expansion of Nigeria LNG through Train 7, would strengthen domestic gas utilisation while expanding Nigeria’s footprint in the global liquefied natural gas market.

“The defining question before us is not whether the world will need more energy – it will. The question is who will provide that energy responsibly, reliably and competitively.

“Nigeria is prepared to answer that call. We possess the resources, we are implementing the reforms, we are building the infrastructure, we are strengthening our institutions and, above all, we are creating an environment in which investment can flourish and shared prosperity can be realised. Nigeria is ready. Nigeria is open for business. Nigeria is investing in the future,” the minister declared.