Adegbite Falade, IPPG Chairman and CEO of Aradel Holdings Plc
…Indigenous producers/Independents account for more than 50% of national production.
…Domestic gas utilization, rapid expansion of CNG and gas‑powered transport systems happen in unprecedented scales.
-Felix Douglas
Giving his industry remarks during the Nigeria International Energy Summit (NIES), Chairman of Independent Petroleum Producers Group (IPPG) and Chief Executive Officer (CEO) of Aradel Holdings Plc, Adegbite Falade submitted that industry leaders are meeting at a time when the world is changing faster than ever before.
Falade was of the view that global energy systems are being reshaped by conflict, shifting alliances and growing realities of energy insecurity. “These forces remind us of a simple truth. In today’s interconnected world, energy has no borders. The shocks in one region ripple across continents and Africa and indeed Nigeria are not shielded from these pressures.”
The IPPG Chairman stated that the theme of this year’s summit, “Energy for Peace and Prosperity: Securing Our Shared Future,” is timely and appropriate. It challenges industry leaders to think beyond the present and to confront the deeper question of how to build stability and prosperity through the country’s God-given energy resources.
“It calls on us to look inward and shape our own path. To design an energy future that is rooted in economic growth and development. If we are to secure peace, if we are to deliver prosperity, then Africa — and Nigeria — must take ownership of its energy destiny. And that journey must begin now.”
The Aradel GCEO advised that Nigeria must build an Energy industry that can sustain itself, deliver real and lasting value to all Nigerians, and grow through collaboration rather than fragmentation.
“The future of our sector lies not in the old model of extracting and exporting raw hydrocarbons, but in creating in-country value that fuels our economy and increasingly contributes to GDP growth.
This requires an industry that is efficient, competitive, well-governed, and resilient, Falade added.
The IPPG Chairman disclosed that Nigeria’s oil and gas industry has recorded notable progress across the entire value chain. In the upstream sector, crude output improved, with average liquids production rising to around 1.64 Mbpd in 2025, up from 1.56 Mbpd in 2024 with a peak production of 1.77 Mbpd. Growth in liquid production was supported by increased export pipeline availability, reduced crude losses and stronger indigenous production.
For the first time, Indigenous producers/Independents now account for more than 50% of national production. “Under the watch of President Tinubu, necessary approvals were granted to Major upstream M&A activities which further increased local ownership and strengthened operational control among indigenous players.”
Continuing Falade said the midstream segment also recorded meaningful progress. More than 16 companies received support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), enabling a range of CNG, mini‑LNG, and LPG projects across the country. Domestic gas utilisation through the rapid expansion of CNG refueling stations and the rollout of gas‑powered transport systems happened at unprecedented scales.
Significant work also continued on critical backbone pipeline infrastructure, including the AKK, and OB3 pipelines. In addition, construction of the NLNG Train 7 project achieved major milestones, reaching 80% completion and moving decisively towards commissioning.
In the downstream sector, the operational ramp‑up of the 650,000bpd Dangote Refinery began reshaping domestic fuel supply, reducing import dependence and increasing local refining capacity.
On the policy and regulatory front, the Aradel GCEO stated further that the government introduced significant reforms such as the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), offering performance‑based tax credits to operators who reduce costs.
The recent appointment of highly seasoned industry professionals by President Tinubu to head both the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is highly commendable.
Falade said it further demonstrates the President’s commitment to strengthening the country’s regulatory institutions for successful implementation of ongoing industry-wide reforms.
However, there is still important work ahead for all stakeholders to build an energy industry that is truly self‑sufficient and consistently creates value for the nation.
The IPPG Chairman noted that the group wishes to highlight few key important areas that require sustained and focused attention if the oil and gas industry will deliver much needed peace and prosperity.
These include:
Reduction of bureaucracy, streamline industry fees and related charges, to ensure operators remain competitive. The industry currently operates at a 40% cost premium relative to other non-shale jurisdictions.
Strengthen security across the Niger Delta, as the growing reliance on private security arrangements continues to increase Nigeria’s already high unit operating costs relative to peer countries.
The IPPG Chairman urges the country to pursue creative public-private partnerships that will build the nation’s midstream infrastructure. “Without this, we will not bridge the massive gap to potential in the industry’s contribution to GDP growth.”
Government should address the matter of access to long‑term, affordable capital, which is essential for unlocking Nigeria’s hydrocarbon potential.
“We applaud the support of government and other critical stakeholders in delivering the establishment of the African Energy Bank. We must ensure maximum leverage to make this work for peace and prosperity.”
Ensure policy stability and adopt competitive fiscal frameworks that support resource monetization and stimulate industrial growth.
The country must seek to build investor confidence through full and effective implementation of the Petroleum Industry Act (PIA) supported by strong, transparent, and predictable regulatory institutions.
Falade advised Nigeria to build an oil and gas industry that can sustain itself, deliver real and lasting value to all Nigerians.
He said realising this aspiration will require bold and decisive actions to bring about wholesome changes across the entire energy sector.
IPPG stands ready to play its part and it reaffirms its continued full commitment to the Government.
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