The Federal Government has said Nigeria’s growing local refining capacity has significantly reduced the country’s dependence on imported petrol, with daily domestic production now reaching about 48 million litres.
Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed this on Tuesday during the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos, where she highlighted the impact of ongoing reforms in the oil and gas sector.
According to Verheijen, the rise in local refining has led to a dramatic reduction in petrol imports, which fell from approximately N2.3 trillion in the first quarter of 2025 to less than N90 billion during the same period in 2026.
She noted that for the first time in decades, the bulk of petrol consumed across the country is being refined domestically, easing pressure on foreign exchange demand and supporting the stability of the naira.
“For decades, imported fuel created a constant demand for scarce foreign currency and weakened the naira. As local refining has expanded, that burden has reduced significantly,” she said.
The presidential aide described energy security and currency stability as interconnected goals, arguing that increased domestic refining is helping Nigeria retain more foreign exchange while strengthening its energy independence.
Verheijen also reported improvements in crude oil production, stating that Nigeria’s crude oil and condensate output averaged 1.64 million barrels per day in 2025. She said this represented an increase of about 400,000 barrels per day compared to 2023 and marked the highest onshore production level recorded in two decades.
She attributed the progress to renewed investor confidence and reforms aimed at improving the operating environment in the petroleum sector.
The government official further revealed that more than $4 billion worth of international oil company divestments had been successfully completed, enabling greater indigenous participation in onshore operations while major oil firms shifted focus to deepwater and integrated gas projects.
According to her, improved pipeline security and a reduction in illegal refining activities have also contributed to the sector’s recovery.
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“Every additional barrel matters for government revenue, employment generation and the overall economic wellbeing of the country,” she said.
Reflecting on the situation inherited by the Tinubu administration in 2023, Verheijen said the oil and gas industry was facing severe fiscal and operational challenges, including costly fuel subsidies, foreign exchange distortions and declining production levels.
She explained that the government’s first priority was to stabilise the sector through difficult but necessary reforms, including the removal of petrol subsidies and exchange-rate adjustments.
The reforms, she said, have contributed to a sharp increase in government revenue, with total federation earnings rising from about N12 trillion in 2023 to roughly N21 trillion in 2024.
Verheijen added that despite fuel market deregulation, the government had succeeded in avoiding the widespread fuel shortages and long queues that previously plagued the country.
The Federal Government maintains that ongoing reforms in the energy sector are laying the foundation for stronger economic growth, improved energy security and a more resilient national currency.