Tinubu Says Nigeria Is Cutting Oil Dependence as Non-Oil Sectors Expand

President Bola Tinubu says Nigeria has made progress in reducing its dependence on crude oil revenue as the federal government seeks a broader economic base.

Tinubu, represented by Vice President Kashim Shettima, spoke in Abuja on Tuesday during activities marking the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission.

The president said agriculture, manufacturing and the digital and creative sectors are central to the government's diversification plans. Oil and gas, he said, would remain important sources of energy, public revenue and foreign exchange while supporting development elsewhere in the economy.

His comments come as the government continues reforms aimed at raising petroleum production, improving revenue flows and attracting investment. In February, Tinubu issued an executive order requiring oil and gas proceeds due to the Federation to be paid directly into the Federation Account. The measure also ended specified deductions previously retained by NNPC Limited, including a 30% management fee on profit oil and gas.

Petroleum remains significant to government finances despite the diversification push. Premium Times reported that oil and gas remittances for the first two months of 2026 were ₦137.41 billion, compared with ₦937.10 billion projected for the period.

Tinubu said improved security and cooperation involving producers, host communities, regulators and security agencies had contributed to greater stability in crude production. He also said Nigeria had been Africa's leading destination for upstream investment for two consecutive years.

Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri, put current crude production at about 1.7 million barrels per day and said the country holds more than 37 billion barrels in reserves. He called for additional exploration, licensing rounds and investment to develop more resources.

NUPRC figures cited in the report show that more than $57 billion in Field Development Plans have been approved since 2024. The regulator expects 22 major offshore projects scheduled between 2026 and 2030 to attract an estimated $30 billion to $50 billion in investment.

As of January 2026, Nigeria's oil and condensate reserves stood at 37.01 billion barrels, while gas reserves were 215.19 trillion cubic feet, according to NUPRC data.

Tinubu also placed gas at the centre of the government's energy plans. He said the administration intends to increase gas availability for electricity generation, industrial activity and cleaner household cooking while reducing flaring and methane emissions and developing renewable energy alongside gas.

The president said Nigeria's energy transition would be shaped by the country's development and energy-access needs as well as its climate commitments.

He also called on NUPRC to maintain predictable regulation and work with other government institutions to reduce overlapping requirements. Tinubu said companies receiving government incentives should meet commitments covering investment programmes, local content, environmental obligations and host communities.