—As oil hits 1.7mbpd milestone in 2025, gas tops 7bcf/day

—Targets 1.8mbpd in 2026, $30bn investments by 2030

By Johnbosco Agbakwuru

ABUJA — THE Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPC Ltd, Bayo Ojulari, has reassured Nigerians that intensifying competition in the downstream petroleum sector will ultimately deliver benefits to consumers, despite short-term market adjustments.

Briefing journalists after a meeting with President Bola Tinubu at his Lagos residence on Sunday, Ojulari emphasized that the shift to a fully competitive “willing-buyer, willing-seller” model would create initial challenges but yield long-term gains.

“At the end of the day, Nigerians on the streets are going to be the beneficiaries. Where there is healthy competition, the buyers are the ultimate beneficiaries,” he stated.

The visit, he explained, focused on updating the President on NNPC’s 2025 performance and 2026 priorities, while expressing gratitude for his unwavering support during the company’s transformation.

“I came to update Mr President about the end-of-2025 performance of NNPC and to discuss our strategic priorities for 2026. It is also to thank Mr President for the inspiration he has given to the new NNPC management and board through this very challenging period of transformation,” Ojulari said.

He described NNPC’s reforms as arduous yet essential, crediting presidential backing for key advancements.

“Transformation is very difficult. With his backing, we have been able to begin to make significant improvements to the structure of NNPC.”

Ojulari highlighted robust production increases in 2025, surpassing prior benchmarks. “Last year, we were producing about 1.5 million barrels per day. This year, we are getting to over 1.7 million barrels per day in terms of oil production,” he noted.

Gas output also climbed sharply, from roughly 6.5 billion standard cubic feet per day (bscfpd) to more than 7 bscfpd, driven by internal structural reforms.A major highlight was progress on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline.

“We successfully completed the welding of the main line of the AKK. We were able to cross the River Niger, which had been a struggle for many years,” he revealed.

This breakthrough paves the way for connections starting early 2026, channeling gas to northern Nigeria and spurring industrialization in hubs like Kaduna, Kano, Ajaokuta, and Abuja.

“By completing the main line, we can now begin to make all the connections in the early part of next year. That brings gas in its full form to the northern part of Nigeria… We will begin to see industrial parks, gas-based industries, fertiliser plants and power generation.”

On targets and investment drive for 2026, Ojulari prioritized production growth through targeted investments.

He said NNPC aims for at least 1.8 million barrels per day (mbpd) in oil and further gas expansion, alongside portfolio reviews to spur final investment decisions.

“When we say increasing production, it sounds simple, but there is a lot that goes into it. It means attracting the right investment, whether in oil or gas,” he explained.

President Tinubu praised the progress but reiterated ambitious goals, including $30 billion in investments by 2030 and 2 mbpd oil output by 2027.

“Mr President charged us with driving his performance aspiration. He reminded us of the target of attracting over $30 billion in additional investment by 2030,”

Addressing fuel pricing and supply concerns, Ojulari pointed to the Petroleum Industry Act (PIA), which delineates regulation from commercial operations.

“The PIA did something fundamental. It separated regulation from business,” he said, noting NNPC’s role as a profit-driven entity under the Companies and Allied Matters Act (CAMA), without federation allocations.NNPC continues as the supplier of last resort, collaborating with players like Dangote Refinery amid market tensions.

“Competitiveness is not easy. We are in the early stages of a willing buyer-willing seller market,” he acknowledged, while hailing domestic refining as transformative.

“It is a great thing to have a major refinery in Nigeria supplying West Africa and other parts of the world. What we need to do is to walk through this reality together so that the market forces can stabilise and everyone can be okay.”

Ojulari expressed optimism that sustained reforms and collaboration would soon make competition’s benefits tangible for everyday Nigerians.