Nigeria has reaffirmed its commitment to building a transparent, stable, and investor-friendly petroleum sector, with ongoing reforms aimed at attracting foreign investment and unlocking opportunities for local small and medium-sized enterprises (SMEs) across the energy value chain.
Delivering the president’s keynote address at the Africa Energy Week in Cape Town, the Minister of State for Petroleum Resources (Oil) said Nigeria is “open for business” and actively pursuing policies that prioritise efficiency, investment, and long-term growth. He explained that the Petroleum Industry Act (PIA) now provides a clear and predictable fiscal and regulatory framework that enhances transparency, strengthens oversight, and deepens host community engagement — all critical for investor confidence.
“What makes Nigeria different today is the legal, regulatory, financial, and structural transformation we are delivering,” he noted, adding that the reforms are designed to create an enabling environment where international players and local businesses can thrive.
Signs of progress are already visible in the upstream sector. The “Project One Million Barrels” initiative, launched in October 2024, has raised daily crude oil output to between 1.7 and 1.83 million barrels, including a record boost of 300,000 barrels per day in July 2025. Similarly, the number of active drilling rigs has increased from 31 in January to 50 by July, signalling renewed investor confidence and intensified exploration activity.
These developments are expected to ripple across the local economy, creating significant openings for SMEs in logistics, engineering, equipment leasing, catering, security, and local content supply chains. Industry experts say the sector’s expansion will increasingly rely on indigenous enterprises to support upstream operations, refining, and service delivery.
The minister stressed that the government’s focus extends beyond boosting production volumes to ensuring reforms translate into jobs, enterprise growth, and shared prosperity. “This gathering is more than a conference, it is a call to action. Nigeria is ready not just to participate in the global energy market, but to lead reform and growth on the African continent,” he said.
As reforms deepen and investor confidence strengthens, analysts believe local SMEs will become central to Nigeria’s evolving petroleum industry, turning policy gains into tangible economic growth and sustainable development.
