Business
Nigeria Earns N55.5tn From Crude Oil Sales in 2025
Nigeria earned an average of N55.5tn from crude oil sales in 2025, an analysis of official production figures released by the Nigerian Upstream Petroleum Regulatory Commission and crude price data published by the Central Bank of Nigeria has shown.
The 2025 figure is higher when compared to the N50.88tn earned in 2024.
NUPRC data indicate that Nigeria produced a total of 530.41 million barrels of crude oil between January and December 2025, with output fluctuating throughout the year amid outages, operational disruptions, and a gradual recovery in some producing fields.
The N55.5tn was obtained by multiplying 530.41 million barrels by the average crude oil price of $72.08 in 2025, and converting the result with N1,450 to a dollar.
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Crude oil production opened the year strongly at 47.70 million barrels in January, before falling to 41.02 million barrels in February. Output recovered modestly in March to 43.42 million barrels and rose further in April to 44.57 million barrels. Production remained relatively stable through the second quarter, increasing slightly to 45.04 million barrels in May and 45.16 million barrels in June.
In the third quarter, crude output climbed to 46.73 million barrels in July, but dipped again in August to 44.47 million barrels and fell further in September to 41.69 million barrels, one of the lowest levels recorded during the year. Production rebounded in the final quarter, reaching 43.44 million barrels in October, 43.08 million barrels in November, and 44.08 million barrels in December, according to the NUPRC.
While output remained below Nigeria’s OPEC quota for most of the year, crude oil prices helped support revenue. Data from the CBN show that Bonny Light, Nigeria’s flagship crude grade, traded at elevated levels in the early part of the year before easing in the second quarter.
Bonny Light crude sold at an average of $80.76 per barrel in January 2025, before declining to $77.08 in February and $74.44 in March. Prices dropped further in April to $69.07 and reached a low of $65.90 in May, reflecting softer global oil market conditions.
Prices recovered in June to $73.50 and remained largely stable in the third quarter, averaging $73.18 in July, $70.55 in August, and $70.20 in September, before falling again to $66.15 in October, the latest month for which CBN data were available.
Using the simple average of the 10 monthly Bonny Light prices published by the CBN, crude prices averaged $72.08 per barrel over the period under review.
Applying this average price to Nigeria’s total crude oil production of 530.41 million barrels, estimated gross crude oil revenue for 2025 stood at approximately $38.23bn. Converted at an exchange rate of N1,450 to the dollar, this translates to about N55.5tn in crude oil earnings for the year.
Industry analysts noted that the figure represents gross revenue, not actual government receipts, as it does not account for production costs, joint venture cash calls, production-sharing contract cost recovery, oil theft, domestic crude supply obligations, or deferred liftings.
Nonetheless, the analysis provides a clear picture of the scale of crude oil inflows generated during the year, based strictly on official production data from the NUPRC and price benchmarks from the CBN, highlighting the continued importance of both output stability and price performance to Nigeria’s oil-dependent economy.
It should be noted that the N55tn was the amount expected to have been generated by the Nigerian National Petroleum Company Limited, the international oil companies, and their indigenous counterparts for the sale of crude produced in Nigeria.
In 2024, it was noted that Nigeria produced 408.68 million barrels of crude oil, generating approximately N50.88tn.
Crude for Loan
The PUNCH reports that the government-owned Nigerian National Petroleum Company Limited serviced part of its $3bn forward-sale loan from the African Export-Import Bank with crude oil worth N991bn in 2024.
According to its 2024 financial statement report, the repayment was tied to Project Gazelle, a forward crude oil supply agreement signed in 2023.
On August 17, 2023, The PUNCH reported that the NNPC announced it had secured a $3.3bn emergency loan to repay crude oil obligations from Afreximbank. It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.
Under the deal, NNPC committed to deliver 90,000 barrels of crude oil per day from Production Sharing Contract assets to back a funding facility. According to the 2023 financial statement, a drawdown of $2.25bn had already been achieved by 31st December 2023, with principal repayment scheduled to begin in June 2024.
The funding carried an interest rate of 3-month LIBOR plus 6.5 per cent, with a 6 per cent margin and 0.5 per cent liquidity premium. According to the financial statement, the drawdown on the facility had reached N4.9tn out of a total available N5.1tn, while N991bn worth of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8tn at the end of 2024.
It could not be ascertained yet how much crude the NNPC committed to the repayment of the N3.8tn outstanding loan in the whole of 2025.
OPEC Quota
It was reported that Nigeria’s crude oil output dipped in December 2025 by 14,000 barrels per day, defying government efforts to ramp up production.
According to data from NUPRC, instead of rising to meet the 1.5 million barrels per day quota set for Nigeria by the Organisation of the Petroleum Exporting Countries, crude oil production fell from 1.436 mbpd in November to 1.422 mbpd in December, representing 95 per cent of the OPEC quota.
The data show that in 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July. A review of the average daily crude oil output indicates that Nigeria opened the year strongly, producing 1.54 mbpd in January, about 38,700 bpd above its OPEC allocation.
Output, however, dipped below the quota in February at 1.47 mbpd and weakened further in March, when production averaged 1.40 mbpd, representing one of the widest shortfalls of the year.
Although output recovered modestly in April (1.49 mbpd) and May (1.45 mbpd), Nigeria remained under its OPEC ceiling until June, when crude production edged up to 1.51 mbpd, marginally exceeding the quota.
The country sustained this momentum in July, producing 1.51 mbpd, before slipping back below the threshold in the following months.
Production declined notably in the third quarter, averaging 1.43 mbpd in August and falling to a yearly low of 1.39 mbpd in September, leaving a deficit of more than 110,000 barrels per day against the OPEC target.
The NUPRC data reveal that output remained subdued in the final quarter, with daily crude production standing at 1.40 mbpd in October, 1.436 mbpd in November, and 1.422 mbpd in December.
Missed Target
In the 2025 budget, Nigeria planned to produce at least 2.1 million barrels of oil (crude oil and condensate) per day. This would amount to 766.5 million barrels if multiplied by the 365 days in the year.
However, in the whole of 2025, the country struggled to pump 599.64 million barrels of oil — 530.41mb of crude and 69.23mb of condensate. This means the country was 166.86 million barrels below its oil production target in 2025.
As a result, the 2026 benchmarks for oil were seen to be deliberately conservative to account for uncertainties in the global oil market and ongoing domestic challenges, including security issues and infrastructure constraints affecting crude oil production.
Instead of the ambitious 2.1 million barrels for 2025, the 2026 revenue estimate is anchored on a daily production of 1.84 million barrels, a benchmark crude oil price of $64.85 per barrel, and an average exchange rate of N1,400 to the dollar.
Experts Speak
A professor of economics, Segun Ajibola, said the crude production volume is dependent on several factors, many of which are beyond the immediate control of the government itself.
According to him, the government can deploy resources towards oil exploration, but the overall impact depends on technical cooperation by partners, the joint ventures, happenings in the global oil market, and the environmental conditions, among others.
Ajibola maintained that the Nigerian situation is somehow complex, as the key agency in charge, the NNPC, has been enmeshed in controversies over the period.
The don stated that of particular concern are the unsettled problems in host communities, incessant pipeline vandalisation, activities of bunkerers with alleged loss of about 30 per cent of potent production annually, the state of insecurity in the country, corruption in high places, and others.
Ajibola submitted, “The government can be more decisive in addressing those problems that are right on its table to jack up production levels and meet planned targets. It does not appear that the government is doing enough at the moment.”
Speaking, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Muda Yusuf, remarked that oil production has suffered from two major limitations or challenges—the challenges of insecurity and policy, saying those are the two factors that have affected investment in oil exploration and exploitation in the upstream sector.
“On insecurity, the government has committed a lot of resources to protect pipelines and protect investors, and we can see some results, but we are not exactly where we should be. So, insecurity is still a kind of issue affecting oil production. The government continues to commit resources to tackle insecurity; it engaged private community-based security agencies to support the efforts of the military. Some progress has been made, but we are not yet where we expect to be,” he stressed.
Yusuf stressed the challenge of policy, adding that it took the country a long time to come up with the Petroleum Industry Act, and even the act itself still requires some fine-tuning.
“So there is still the need to review the fiscal terms to encourage more investors to come because attracting capital to the oil sector is a very competitive thing. We are competing with many other oil-producing countries that are offering far better incentives to investors.
“The good news is that the President has committed to attracting those investors into the oil sector. The latest we saw in this regard was the meeting between the President and the Global Executive of Shell, where a promise of $20bn investment was made.
“So these are the kind of things that we expect to see. If we see more of these, we are likely to see more investments in oil production. So it’s a question of improving the fiscal terms, ensuring policy sustainability and stability, so that the problem of uncertainty or unpredictability will no longer be there. We should ensure we have security of investments and assets of investors in the Niger Delta,” Yusuf stressed.
A professor of energy, Dayo Ayoade, said the government knows what to do to ramp up oil production.
“If you want to fix production targets in the oil and gas industry, you have to ensure that you have good governance in the sector. Your sector must have a well-implemented programme. You must adhere to your own laws. And when you do this, you boost confidence among your investors, and then the investors would want to bring in their US dollars to invest in your country. If you don’t do this, then that could be a problem,” Ayoade said.
He posited that there’s still the issue of oil, even though the government no longer makes much noise about it.
Despite the N55.5tn made in 2025, the don said, “The facts are that there are reasons why we’re not producing enough. You have to give people the confidence to invest over the long term. What has happened to the fact that we’ve successfully ended oil theft because we don’t talk about it anymore? Was that the case? No more pipeline breaches?
“What about the cost of production in Nigeria? I think it’s one of the highest in the world. The cost of doing business in Nigeria is very high. You can’t compare it to any of our competitors. So, we still have a very long way to go. I think that if the government wants to achieve its 2026 oil targets, it must address the cost of doing business in the oil industry,” he added.
The professor commended the government for some of the recent investment decisions.
“There are lots of good things also. I don’t want to be too negative. I think there are lots of good things the government has done that will take time to achieve its objectives. For instance, Shell’s continuing huge investments into Bonga will be highly profitable; that will increase our numbers, helping our indigenous producers open up marginal fields and get to production quickly.
“All those sitting on oil wells and sitting on licences should show the government their work programmes. If you don’t do your work programme effectively, we’ll remove the lock from you and give it to someone else. So, there are good things also. It’s not all bad news. But the government can do more to ensure that we meet our targets,” he said.
Business
Ekpo Urges Entrepreneurs to Harness Nigeria’s Gas Resources for Economic Growth, General Wellbeing
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, has urged investors to unlock Nigeria’s vast natural gas resources to drive industrialisation, economic growth, job creation, and improved living standards for all Nigerians.
Ekpo made this appeal when he delivered a keynote address at the Association of Local Distributors of Gas (ALDG) Business Forum 2026 held in Abuja, where he spoke on the theme, ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’.
The minister who was represented by the Director of Midstream and Downstream at the ministry, Mrs. Ikenma Irene, told stakeholders that while Nigeria possessed over 209 trillion cubic feet of proven natural gas reserves—making it one of the most gas-endowed nations globally—the country’s true challenge was actually on how to ensure widespread access and utilisation of this strategic resource.
“Nigeria’s development will not be measured by the volume of gas beneath our soil, but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.
The minister commended ALDG for providing a strategic platform for collaboration and dialogue among key stakeholders, noting that the Forum intervened at a critical period in Nigeria’s energy transition journey.
He highlighted the federal government’s continued commitment under the leadership of President Bola Tinubu to deepen domestic gas utilisation through the Decade of Gas initiative and other transformative reforms designed to position Nigeria as a gas-powered economy.
The minister further noted that the Petroleum Industry Act (PIA) 2021 has strengthened the legal and regulatory framework necessary to attract investment, encourage private sector participation, expand infrastructure, and promote market efficiency throughout the gas sector.
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According to the minister, industrialised nations achieved economic advancement not merely because of resource endowment but because they built systems that enabled reliable energy access, industrial utilisation, and efficient markets.
He said, “Nigeria must now move decisively from gas abundance to gas accessibility.
“The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships.”
He urged stakeholders participating in the Forum to focus on developing practical, investment-driven solutions that expand gas access and deliver measurable benefits to Nigerians.
“As we deliberate today, let us remain focused on building a gas sector that delivers real value to Nigerians — one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” the minister stated.
“Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.
The ban on exportation of Liquefied Petroleum Gas (LPG) is still in force despite rising prices and supply concerns across Nigeria.
An official with the Federal Ministry of Petroleum Resources made the clarification amid soaring prices and claims that locally produced cooking gas is being exported in foreign currency at the expense of domestic consumers.
Speculations had mounted amongst cooking gas retailers that some locally produced LPG was being sold to West African buyers because it was more profitable than supplying the domestic market.
The Chairman of the Liquefied Petroleum Gas Retailers Association, Ayobami Olarinoye, had told The PUNCH that the persistent scarcity and high prices of cooking gas were being worsened by limited product availability and alleged exports by a local refinery.
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Speaking exclusively with The PUNCH, the spokesman for the Minister of State for Petroleum Resources (Gas), Louis Ibah, dismissed the claim, saying the Federal Government’s restriction on LPG exports remains in place and is being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
“The ban on exports of LPG announced by the Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, is still in place to stabilise prices and is strictly enforced by the NMDPRA,” Ibah told The PUNCH on Thursday.
Ibah emphasised that none of the local producers is allowed to export cooking gas, saying all resources are focused on making the product available for Nigerians. “It’s important to note that none of our producers are currently exporting the LPG meant for cooking in Nigeria, so all resources are focused on meeting our local needs,” he said.
The government’s position comes as concerns mount over soaring cooking gas prices and supply shortages across several parts of the country. Retailers and consumers have reported difficulties accessing supplies, while prices have continued to rise.
Describing the situation, Olarinoye said access to products had become increasingly difficult in recent weeks. “Getting the product has been excruciatingly difficult, and it is not readily available. Out of every 10 plants, only one or two would have products to sell to our members. Many of them, especially those situated in relatively residential areas, prefer to sell directly to end-users, while a few are still selling to retailers,” he stated.
He warned that prices were unlikely to decline in the immediate term unless there was an intervention. “The high price may remain the way it is until the situation changes positively,” the LPGAR boss noted.
Olarinoye called on the Federal Government to create incentives that would encourage more investors to enter the LPG market and boost local supply.
A source at the NMDPRA said the regulator was working with the Nigerian National Petroleum Company Limited and other stakeholders to improve product availability. “The regulator is collaborating with the Nigerian National Petroleum Company Limited and other key stakeholders to further boost LPG availability in the local market,” the source said.
It was also learnt that a new Seplat gas facility is expected to begin LPG supply to the domestic market by July. “This means we can expect a significant improvement in supply,” the source added.
The concerns come as the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for stronger efforts to improve domestic gas distribution and utilisation across the country.
Speaking at the Association of Local Distributors of Gas Business Forum 2026 in Abuja, Ekpo said Nigeria’s vast gas reserves would remain economically insignificant unless they are translated into accessible energy for households, industries and businesses.
Represented by the Director, Midstream and Downstream, Mrs Ikenma Irene, the minister delivered a keynote address titled, ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’.
He noted that Nigeria holds more than 209 trillion cubic feet of proven natural gas reserves but said the country’s development would depend on how effectively those resources are utilised.
“Nigeria’s development will not be measured by the volume of gas beneath our soil but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.
According to him, infrastructure gaps, weak distribution networks and limited market penetration remain major obstacles to increased domestic gas utilisation.
Ekpo reiterated the Federal Government’s commitment under President Bola Tinubu to accelerate domestic gas development through the Decade of Gas initiative and highlighted reforms under the Petroleum Industry Act 2021 aimed at improving investor confidence and encouraging private sector participation.
“Nigeria must now move decisively from gas abundance to gas accessibility. The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships,” he said.
He urged operators to focus on practical solutions that would expand infrastructure and distribution networks while ensuring affordable and reliable access to gas.
“Let us remain focused on building a gas sector that delivers real value to Nigerians—one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” he stated.
The minister concluded with a call for the implementation of gas sector reforms. “Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.
In a significant effort to alleviate the burden of rising food costs on vulnerable households, the Aliko Dangote Foundation (ADF) has commenced the distribution of bags of rice to members of host communities of Dangote Cement Plc across Nigeria.
The initiative forms part of the Foundation’s National Food Intervention Programme aimed at cushioning the effects of prevailing economic challenges on ordinary Nigerians. The distribution exercise, which is being rolled out across communities where Dangote Cement operates in Ibese and Itori, both in Ogun state, underscores the Dangote Group’s commitment to inclusive growth and community wellbeing.
In what has now become an annual event, in which thousands of 10kg bags of rice are being distributed to beneficiaries from 17 host communities in Ibese and 36 others in Itori and Ijebu-Igbo with focus on low-income families, elderly residents, and other vulnerable groups within the host communities.
Speaking on the initiative, ADF Chief Executive, Zouera Youssoufou who was represented by the ADF Head of Operations, Victor Ejiro reaffirmed that the food intervention programme reflects the organization’s long-standing dedication to food security and poverty alleviation, particularly during periods of economic strain.
She said: “This intervention is designed to provide immediate relief to households grappling with high food prices. As a socially responsible organization, we recognize the importance of supporting our host communities beyond business operations,”.
“At the Aliko Dangote Foundation, we recognize the current economic realities facing many Nigerian households. This intervention is aimed at providing immediate relief while reinforcing our long-standing commitment to the wellbeing of our host communities.”
“We understand the difficulties families are facing at this time. This support is our way of standing with our communities and ensuring that no household is left behind during these challenging times. Sustainable development goes beyond business operations. Through this programme, we are strengthening community resilience and contributing to national efforts to improve food access and social stability.”
“This intervention is focused on delivering real, immediate support to vulnerable households. We will continue to expand our reach to ensure more families benefit from this programme.”
At the Ibese distribution centre, The Aboro of Ibeseland, Oba Rotimi Oluseyi Mulero thanked the giving spirit of Alhaji Dangote describing the rice distribution as “operation feed the families”.
He stated excitedly: On behalf of our people, I extend our profound gratitude to the Aliko Dangote Foundation for this timely and commendable gesture. At a time when many families are facing economic challenges, this distribution of food items will go a long way in alleviating hardship within our communities.
“We appreciate Dangote Group not only as a business partner but as a responsible corporate citizen that continues to demonstrate genuine concern for the wellbeing of its host communities. We pray that this partnership continues to flourish for the benefit of all. Today, our hearts are filled with appreciation. This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.”
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Some of the community leaders and beneficiaries also expressed appreciation to the ADF Chairman, Alhaji Aliko Dangote for the gesture, noting that the rice distribution comes at a critical time when many families are facing financial pressures due to inflation and rising living costs.
Also at Itori, the Olu of Itori, Oba Abdulfatai Akorede Akamo said his people’s hearts are filled with appreciation. “This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.
“We thank Alhaji Aliko Dangote and his Foundation for remembering the grassroots and standing by us in times of need. We are deeply grateful for this act of kindness. May the Almighty bless the Dangote Group and increase its capacity to continue doing good for humanity.”
At several distribution points, orderly processes were put in place to ensure transparency and equitable access. Local coordinators, in collaboration with community representatives, supervised the exercise to guarantee that the items reached intended beneficiaries.
The Dangote Cement host communities, spread across key states including Ogun, Kogi, Benue, Edo, and others, have historically benefitted from numerous Corporate Social Responsibility (CSR) initiatives by the Dangote Group, ranging from infrastructure development to healthcare, education, and economic empowerment programmes.
The ongoing food intervention aligns with the Foundation’s broader strategy to enhance food access and strengthen social safety nets across Nigeria. It also complements government efforts aimed at mitigating the impact of economic headwinds on citizens.
Industry observers note that such private sector-driven interventions are increasingly crucial in bridging gaps in social welfare delivery, especially in times of economic uncertainty.
The ADF, one of the largest private philanthropic organizations in Africa, continues to play a pivotal role in supporting national development priorities through targeted interventions in health, education, and economic empowerment.
As the rice distribution progresses, the Foundation has reiterated its commitment to expanding the reach of the programme to cover more communities in need, reinforcing its mission to improve the quality of life for Nigerians.
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