Nigeria’s Oil Sector Records Fresh Recovery As Crude Theft Declines

Nigeria’s oil sector is showing signs of recovery as declining crude theft helps improve production, strengthen revenue prospects and encourage renewed investment in the industry.

The development comes amid continued efforts to secure oil infrastructure across the Niger Delta and reduce losses caused by crude theft and pipeline vandalism.

President Bola Tinubu said in his Independence Day address that Nigeria’s economy had grown by more than four per cent in 2026, while oil theft had declined and inflation had fallen substantially from its peak.

The reduction in crude theft has become increasingly important to Nigeria’s oil industry, where production losses have historically affected government revenue and foreign exchange earnings.

According to the report, improved security around oil infrastructure has contributed to stronger production, with stakeholders linking the development to increased surveillance and efforts to tackle illegal connections and crude theft.

Nigeria is also seeking to attract fresh investment into its deepwater oil sector. The proposed Bonga Southwest/Aparo project, located in Oil Mining Lease 118, is expected to attract up to $21 billion in investment, with projected peak production of about 175,000 barrels of oil per day alongside significant gas output.

The Federal Government has also introduced new incentives aimed at making Nigeria’s deepwater oil and gas sector more attractive to investors.

Industry stakeholders say sustained improvements in security and production could strengthen Nigeria’s external reserves, government revenues and broader economic stability.

However, maintaining the gains will depend on continued protection of oil infrastructure, cooperation with host communities and sustained investment across the sector.