Nigeria’s Oil Industry: More Companies, Fewer Barrels

Nigeria's oil and gas sector has witnessed a dramatic increase in the number of upstream operating companies, growing from fewer than 10 in 2010 to 117 today. Concurrently, local content has surged from less than 5 percent to 61 percent as of 2025, according to the Nigerian Content Development and Monitoring Board (NCDMB).

This expansion, credited to the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, has created thousands of direct jobs and fostered a significant increase in service companies, fabrication yards, engineering design firms, and manufacturing companies. The NCDMB views these numbers as a success story, indicating that Nigerians are now central to the industry's value chain.

However, this growth in corporate presence and local participation has not translated into increased crude oil production. For nearly two decades, Nigeria's output has stagnated, hovering between 1.4 million and 1.7 million barrels per day, including condensate. This is a stark contrast to 2005 and 2010, when Nigeria produced 2.5 million bpd and 2.6 million bpd, respectively, with fewer companies operating.

The paradox raises questions about Nigeria's progress: while more companies hold licenses and local content has improved, actual oil output remains significantly below historical levels and the country's Organization of Petroleum Exporting Countries (OPEC) quota of 2.5 million bpd. The recent rebound in production, driven by improved pipeline security and reactivation of dormant wells, is real but insufficient to close the gap.

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Nigerian companies in the upstream sector, which were dominated by international and now national companies, were just less than 10. But as we speak, operating companies are about 117. So, that is a significant improvement.