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By Adewale Sanyaolu
Nigeria’s persistent crude oil production shortfalls are undermining public revenue, foreign exchange stability and overall economic confidence, the Chairman of the Society of Petroleum Engineers Nigeria Council, Mr. Francis Nwaochei, has warned.
Speaking at a press conference in Lagos on Tuesday, Nwaochei said that although there have been modest improvements in output, the country is still producing significantly below its capacity and national aspirations, with far-reaching economic consequences.
He called on industry stakeholders to seize the opportunity to address Nigeria’s production shortfalls decisively, warning that continued underperformance in crude output will keep pressure on public finances, weaken macroeconomic stability and limit the country’s broader development ambitions.
According to him, crude oil production levels are directly tied to Nigeria’s fiscal health, affecting government revenue, infrastructure financing, exchange rate stability and even the cost of living for the average citizen. He stressed that when output falls short, the ripple effects are felt across the broader economy, from weakened foreign exchange inflows to constrained public spending. Nigeria has set a target of exceeding three million barrels per day, but Nwaochei noted that achieving that goal will require more than rhetoric. He said the era of “easy oil” is over, and that only intelligent, technology-driven operations supported by disciplined capital investment and clear policy frameworks can close the production gap.
He explained that unclear fiscal terms, overlapping regulatory mandates and slow approval processes continue to weaken investor confidence and stall new investments, thereby limiting output growth. Without regulatory efficiency and policy coherence, he warned, capital will remain cautious and production recovery will be slow.
The council said the 2026 edition of the Oloibiri Lecture Series and Energy Forum, scheduled for April 9, 2026, at the Petroleum Technology Development Fund Tower in Abuja, will focus heavily on resolving these bottlenecks.
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The annual forum brings together regulators, operators, policymakers and investors to deliberate on strategic solutions for the sector.
Nwaochei emphasised that surpassing the three million barrels per day threshold is not merely about meeting a symbolic benchmark but about restoring fiscal stability, strengthening domestic refining, unlocking gas for industrial growth and reinforcing Nigeria’s credibility as a reliable global supplier.
He added that improving production will require optimising the implementation of the petroleum industry framework, reinforcing fiscal stability to rebuild investor trust, and enhancing indigenous operators through improved access to financing, digital tools and technology partnerships.
He also identified idle wellbores and maturing assets as untapped opportunities that could help boost reserves and national output if properly managed.
The downstream transition, he said, has already begun with increased domestic refining capacity, but warned that without adequate upstream production, the broader economic benefits may be constrained.
He stressed the need for complementary investments in pipelines, storage infrastructure and gas monetization projects to maximize value across the energy chain.
Nwaochei further noted that recent governance reforms aimed at strengthening transparency in petroleum revenue management are a step in the right direction, but cautioned that sustained stakeholder engagement and accountability will be crucial to maintaining operational efficiency and investor confidence.
Describing the upcoming forum as a working platform rather than a ceremonial gathering, he said it is designed to generate concrete recommendations that can directly influence regulatory reviews, investment decisions and national planning.
