How $6bn Local Investments Shift Oil Control to Nigerians

Nigeria’s oil and gas sector is witnessing a historic power shift as more than $6 billion in local investments have moved control of over half of oil production into the hands of indigenous companies, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).

NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, said the wave of investments, largely driven by reforms under President Bola Tinubu and championed by the Nigerian National Petroleum Company Limited (NNPC Ltd), is reshaping the country’s energy landscape.

“These bold indigenous-led moves have boosted domestic revenue, created jobs, and restored national pride by shifting control of more than 50 per cent of oil production into Nigerian hands,” Orji stated in Abuja during a meeting with NNPC Ltd’s Group Chief Executive Officer, Mr Bayo Ojulari.

The meeting produced plans to establish a technical committee and sign a memorandum of understanding (MoU) between NEITI and NNPC Ltd to strengthen transparency, data sharing, and compliance with global best practices under the Extractive Industries Transparency Initiative (EITI) standard.

NEITI also commended the Federal Government’s Compressed Natural Gas (CNG) initiative and the AKK Gas Project, describing them as strategic steps toward energy security, job creation, and inclusive economic growth.

Industry analysts note that the $6bn capital injection by Nigerian firms marks a major break from decades of foreign dominance, positioning local operators as key drivers of sector growth. However, they caution that sustaining the gains will depend on policy consistency, regulatory oversight, and the timely completion of gas infrastructure projects.

Ojulari reaffirmed NNPC’s commitment to transparency and national interest. “We in NNPC are working for Nigeria. Whatever we do is in the best interest of the country,” he said.

To deepen collaboration, NNPC designated a Chief Compliance Officer to oversee NEITI relations, while its Chief Finance Officer will serve as alternate representative on the NEITI Board.

The planned MoU will further outline cooperation on data transparency, training, technology upgrades, and addressing gaps identified in NEITI’s annual audit reports.

Analysts believe the growing role of indigenous firms, supported by NEITI–NNPC synergy, could mark a decisive turn in Nigeria’s long quest for resource control and sustainable oil wealth management.