• Nigeria targets rise in oil production from 1.6 to 3 million barrels per day by 2030
• WoodMac highlights collaboration, regulatory streamlining, and pragmatic reforms as key
• Investment has plunged from $29 billion in 2014 to $5 billion in 2024

Nigeria is aiming to raise its crude oil output from around 1.6 million barrels per day to about 3 million barrels per day by 2030, according to energy consultancy Wood Mackenzie (WoodMac). Despite structural challenges, the country hopes to achieve this target through strategic reforms and renewed investor confidence.

In a June 16 note, WoodMac outlined three key areas for action: improving stakeholder collaboration, accelerating administrative procedures, and adopting pragmatic, experience-based reforms.

One of the priorities is to smooth the decision-making chain and refocus efforts on high-potential projects, a WoodMac analyst said, adding that better communication between NNPC Ltd and industry players is critical to unlock delayed developments.

WoodMac emphasized that Nigeria’s regulatory environment must be simplified to reduce licensing delays and speed up approval for oil field development plans. These changes are essential to attract capital back into the sector.

“Investment has suffered a steep fall from a peak of US$29 billion (real) in 2014 to just over US$5 billion in 2024. We believe the latter is the absolute minimum required merely to sustain current levels of production,” the consultancy said.

Citing Angola as an example, WoodMac pointed to that country’s 2023 OPEC exit, followed by a revision of its oil code, clearer licensing processes, and a more defined operator framework—all aimed at reviving upstream investment. WoodMac suggested Nigeria could benefit from adopting similarly stable and competitive rules.