Nigeria's oil and gas industry is witnessing renewed momentum as indigenous firms take over divested assets from International Oil Companies (IOCs), adding about 200,000 barrels per day (bpd) to national crude output and unlocking over $5.5 billion in new investments.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the transition marks a shift towards local ownership and confidence in the sector, as domestic operators demonstrate capacity to manage and expand critical energy assets.
Speaking at the Africa Energy Week in Cape Town, Lokpobiri explained that the reforms under the Petroleum Industry Act (PIA) and the government's "Project One Million Barrels" initiative have boosted production, attracted fresh investments, and created more opportunities for Nigerian businesses. Daily output has risen to between 1.7 and 1.83 million bpd, with drilling activity growing from 31 rigs in January to 50 by July 2025.
"These are not just transfers of assets, they are transfers of confidence, capability, and ownership," he said, stressing that local companies are now driving sector growth while creating business for SMEs in logistics, servicing, engineering, and supply chains.
Energy companies like Seplat Energy Plc, which recently acquired Mobil Producing Nigeria Unlimited (MPNU) assets, have raised over $4 billion in financing to expand operations. The company has consistently integrated divested assets, improved efficiency, and maintained safety, while depending largely on a skilled Nigerian workforce and strong local partnerships.
Experts noted that the growth of indigenous operators means more opportunities for small and medium enterprises (SMEs) in oilfield services, fabrication, catering, logistics, and local content supply. It also signals greater domestic participation in the energy value chain, reducing reliance on foreign players.
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Lokpobiri added that Africa must retain more value from its hydrocarbon resources by prioritizing localised value chains, infrastructure, and industrial development. With over $4 trillion available in domestic capital such as pension and insurance funds, he urged African governments and investors to channel resources into productive investments.
"The question is no longer about the availability of funds, but how we can channel them into productive investments on our continent," he said.
Seplat Energy's executives emphasized that indigenous companies, supported by strong financing structures, have the resilience to survive market shocks while delivering long-term growth. They highlighted that mature fields, when operated by agile local firms, present untapped potential for increasing production and creating more jobs.
For SMEs, this shift represents expanding opportunities in Nigeria's energy ecosystem—ranging from technical services to non-technical support—cementing the role of local enterprises in building Nigeria's energy future.
