By Musa Ibrahim
Nigeria’s oil sector is showing signs of a resurgence, with indigenous companies now at the centre of the recovery.
Senator Heineken Lokpobiri, Honourable Minister of State for Petroleum Resources (Oil), has revealed that local operators’ takeover of divested assets has added about 200,000 barrels per day (bpd) to the nation’s crude production.
International Oil Companies (IOCs) such as Shell, ExxonMobil, TotalEnergies, and Eni have in recent years shifted focus to deepwater operations, selling off some of their onshore and shallow-water assets. These divestments, which once raised concerns over Nigeria’s production future, are now being reframed as opportunities for indigenous players to rise.
Speaking recently at the Africa Energy Week in Cape Town, South Africa, Sen. Lokpobiri, delivering a keynote address on behalf of President Bola Tinubu, said that Nigeria’s oil reforms, especially under the Petroleum Industry Act (PIA), have unlocked new confidence in the sector. “What makes Nigeria now different is the legal, regulatory, financial, and structural transformation we are delivering,” he noted.
Policy as the Driver of Growth
The PIA, the Honourable Minister explained, has created a predictable fiscal framework, enhanced licensing transparency, strengthened host community relations, and improved regulatory oversight. These reforms, he said, have already attracted more than $5.5 billion in new Final Investment Decisions (FIDs) within months.
Nigeria’s “One Million Barrels initiative,” launched in October 2024, has also lifted daily production to between 1.7 and 1.83 million bpd, with 300,000 bpd added in July 2025 alone. The number of active drilling rigs has risen from 31 in January to 50 by July, signalling renewed momentum.
“These are not just transfers of assets; they are transfers of confidence, capability, and ownership,” Sen. Lokpobiri said, urging investors to “be part of the energy revolution.”
Seplat as a Case Study
Seplat Energy Plc, one of Nigeria’s leading independent operators, has emerged as a poster child of this transition. Having acquired Mobil Producing Nigeria Unlimited (MPNU) assets, the company has raised over $4 billion in debt financing to grow operations while keeping leverage low.
Chief Executive Officer (CEO)of Seplat Energy Plc, Mr. Roger Brown, said that Seplat’s strategy is anchored on acquiring divested assets, unlocking hidden value, and improving efficiency. “We’ve proven we can acquire assets onshore and bring them up to high levels of production, whilst keeping tight control of costs. This has built a strong balance sheet, enabled us to invest in the future, and return dividends to investors,” Mr. Brown explained.
The company’s latest reserves upgrade, he added, shows significant potential in both oil and gas, much of it close to existing export infrastructure. Seplat has combined its onshore experience with offshore expertise from new colleagues at MPNU, creating a stronger operator from day one.
Financing Nigeria’s Energy Security
Eleanor Adaralegbe, Seplat’s Chief Financial Officer (CFO), highlighted the company’s record of accessing global capital markets through IPOs, bonds, revolving credit facilities, and project financing. She stressed that Nigeria’s energy security still hinges on upstream oil and gas, which fuels both domestic power and foreign exchange earnings.
“A stable and predictable fiscal framework is the single most powerful enabler of upstream financing,” she said, pointing to the need for consistent PIA implementation, timely JV cash-call settlements, and clarity on pricing policies.
Africa’s Bigger Energy Picture
Beyond Nigeria, Sen. Lokpobiri called for stronger African cooperation, noting that the continent holds nearly $4 trillion in domestic capital, including pension and insurance funds. Redirecting these resources into energy infrastructure, he argued, would reduce Africa’s $120 billion annual hydrocarbon import bill and drive transformation.
“The focus should be on availability, accessibility, and affordability of all forms of energy,” he said. “Nigeria is ready not just to participate in the global energy market, but to lead reform and growth on the African continent.”
