February 18, 2026 — In a pivotal move for Nigeria’s energy sector, the Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, has formally presented the ministry’s 2026 budget proposal to the Joint National Assembly Committee on Petroleum Resources. Following a detailed defense session, the committee has officially adopted the estimates, signaling a legislative “green light” for the sector’s fiscal plans for the coming year.
The 2026 proposal is part of the broader N58.18 trillion national “Budget of Consolidation, Renewed Resilience, and Shared Prosperity” presented by President Bola Tinubu. For the petroleum sector, the budget is anchored on key macroeconomic assumptions:
Crude Oil Benchmark: $64.85 per barrel.
Production Target: 1.84 million barrels per day (mbpd).
Exchange Rate: N1,400 to the US Dollar.
Strategic Priorities: Production and Security
During the presentation, the Minister emphasized that the 2026 estimates are designed to move beyond “potential” and focus on tangible production and revenue generation.
Key highlights from the session included:
Boosting Output: The ministry is tasked with achieving an ambitious production target of 2.06 million barrels per day, though the budget remains conservatively pegged at 1.84 million barrels per day to ensure fiscal stability.
Combating Oil Theft: A significant portion of the allocation is directed toward enhanced security and technology deployment to seal leakages and protect national assets in the Niger Delta.
Incentivizing Investment: The budget seeks to foster a more competitive environment for both indigenous players and international oil companies (IOCs).
While the Joint Committee, chaired by Senator Mohammed Kerido and Hon. Ikenga Ugochinyere, commended the ministry’s clarity, the session was not without tough questions. Lawmakers raised concerns regarding the implementation of the 2025 budget, where some capital releases were delayed.
Despite these concerns, the committee adopted the 2026 estimates, acknowledging that the petroleum sector remains the primary engine for the N34.33 trillion in projected federal revenue.
“This budget is a statement of national priority,” the Minister noted. “We are committed to ensuring every naira spent delivers measurable value to the Nigerian people through energy security and economic growth.”
With the committee’s adoption, the petroleum budget estimates will now be integrated into the final Appropriation Bill. The National Assembly has set a tentative date of March 17, 2026, for the final passage of the entire federal budget.
