Federal Government reports significant decline in fuel import costs, plummeting from N2.3 trillion to less than N90 billion.

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The Federal Government has disclosed that local petrol production has increased from effectively zero in 2023 to about 48 million litres per day.

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Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, disclosed this at the Nigerian-British Chamber of Commerce Energy Day 2026.

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A text of her presentation at the event, held recently in Lagos, was made available to the News Agency of Nigeria on Tuesday.

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Speaking on the topic, “Energy in Nigeria: From Potential to Reality”, Verheijen noted that, for the first time in a generation, the majority of the petrol Nigerians consume is now refined at home.

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“This is where energy reform meets the strength of the Naira.

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“For decades, every cargo of imported petrol was a standing demand for scarce dollars, a structural drain that weakened our currency.

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“As local refining has risen, that drain has eased: petrol imports fell from about N2.3 trillion in the first quarter of 2025 to under N90 billion a year later.

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“Fewer dollars spent on fuel means less pressure on the Naira. Energy security and currency stability are not separate goals. They are the same goal,” she said.

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On crude oil and condensate production, the Special Adviser said the country had restored investors’ confidence.

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According to her, crude oil and condensate production averaged 1.64 million barrels per day in 2025.

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She said the production was up by roughly 400,000 barrels a day since 2023, and the highest onshore level in two decades.

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Verheijen also disclosed that over
nfour billion dollars in international oil company divestments had been concluded.n

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She said the divestment had helped to deepen indigenous participation in onshore, while the majors re-focused on deep-water and integrated gas.

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“Pipeline uptime is now consistently high, and illegal refining has been sharply reduced.

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“Every additional barrel matters — for revenue, for jobs, and for the strength of the federation,” she said

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Reflecting on what the administration met on the ground in 2023, Verheijen said that the sector was under severe strain.

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She recalled that subsidies had become fiscally unsustainable while foreign-exchange distortions had weakened investment.

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“Production was below potential; Power-sector debt was strangling the gas-to-power chain.

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“The country had resources, but the system was not converting them into national value.

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“So our first task was to stop the bleeding and rebuild the foundations,” she said.

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In addressing the challenges, Verheijen recalled that President Tinubu’s administration restored fiscal credibility by removing the fuel subsidy and reforming the exchange rate.

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According to her, the decisions were hard, but necessary.

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“The results are visible. Total federation revenue rose to about N21 trillion in 2024, up from roughly N12 trillion in 2023 – nearly doubling in a single year,” she said.

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She noted that, despite the deregulation, the government has prevented the chronic nationwide petrol queues that once defined scarcity.

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