Nigeria’s domestic petrol refining capacity has recorded a major turnaround, with local production climbing from virtually nothing in 2023 to approximately 48 million litres per day, according to the Federal Government.
The Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed this during the Nigerian-British Chamber of Commerce Energy Day 2026, where she spoke on the theme, “Energy in Nigeria: From Potential to Reality.”
In remarks made available to the News Agency of Nigeria (NAN), Verheijen stated that Nigeria has, for the first time in decades, reached a stage where most of the petrol consumed within the country is refined locally.
She explained that the development has strengthened the Naira by reducing the country’s dependence on imported petroleum products.
According to her, imported petrol previously placed enormous pressure on Nigeria’s foreign exchange reserves, as every shipment required significant dollar payments.
She noted that the increase in local refining has drastically reduced this burden, revealing that petrol imports dropped from about N2.3 trillion in the first quarter of 2025 to less than N90 billion within a year.
Verheijen stressed that reducing fuel imports has eased demand for foreign currency, thereby helping to stabilize the local currency.
“Energy security and currency stability are closely connected. As local refining expands, the pressure on foreign exchange reduces, creating a stronger economic foundation,” she said.
On crude oil production, she said the administration has succeeded in rebuilding investor confidence across the sector.
She revealed that Nigeria’s crude oil and condensate production averaged 1.64 million barrels per day in 2025, representing an increase of roughly 400,000 barrels per day compared to 2023 levels.
According to her, this marks the highest level of onshore production recorded in about 20 years.
She also disclosed that international oil companies completed divestment transactions worth more than four billion dollars, a move that has boosted indigenous participation in onshore operations while allowing major operators to focus on offshore and gas projects.
Verheijen added that significant progress has also been made in improving pipeline operations and curbing crude oil theft and illegal refining activities.
She emphasized that every additional barrel produced contributes directly to government revenue, job creation, and economic growth.
Looking back at the situation inherited by the current administration in 2023, Verheijen said the oil and gas sector was facing severe challenges.
She noted that fuel subsidies had become unsustainable, foreign exchange distortions discouraged investment, and production levels remained below the country’s capacity.
She further explained that mounting debts within the electricity sector were undermining the gas-to-power value chain, preventing the country from fully benefiting from its vast energy resources.
To address these challenges, she said President Bola Tinubu’s administration implemented major reforms, including the removal of fuel subsidies and changes to the foreign exchange regime.
While acknowledging that the reforms were difficult, she described them as essential steps toward restoring economic stability.
As a result, she said total federation revenue increased significantly, rising from approximately N12 trillion in 2023 to about N21 trillion in 2024.
Despite the deregulation of the downstream sector, Verheijen maintained that the government has succeeded in preventing the persistent fuel shortages and long queues that previously plagued the country.
