As Nigeria marks its 65th anniversary of independence, the petroleum sector remains central to the country’s economic and political narrative. From the first filling station in Lagos to the commissioning of Africa’s largest refinery, the industry has significantly shaped national development, fiscal policy, and the country’s global standing.
Here are 15 key dates and milestones that defined Nigeria’s oil and gas journey.
1956 – First Filling Station Opens
In 1956, Total (then TotalEnergies) opened Nigeria’s first petrol station on Herbert Macaulay Way, Yaba, Lagos. This marked the birth of modern retail fuel distribution in the country.
1956 – First Oil Discovery at Oloibiri
On 15 January 1956, Shell-BP struck oil at Oloibiri in present-day Bayelsa State, after decades of failed exploration. The well flowed at about 5,000 barrels per day, officially launching Nigeria into the global community of oil-producing nations.
1957 – First Oil Production
By late 1957, Shell had completed development wells at Oloibiri. Initial output averaged nearly 4,928 barrels per day, marking Nigeria’s first commercial crude oil production.
1958 – First Oil Export
In February 1958, crude was piped from Oloibiri to Port Harcourt and exported to global markets. The first shipment of about 5,100 barrels per day placed Nigeria firmly on the map as an oil-exporting country.
1965 – Nigeria Opens First Refinery in Port Harcourt
Nigeria’s first refinery began operations in 1965 at Alesa-Eleme, near Port Harcourt. Built by Shell-BP, the facility initially processed 35,000 barrels per day, later expanded to 60,000 bpd. It was a crucial step in building domestic refining capacity.
1971 – Nigeria Joins OPEC
Nigeria became the 11th member of the Organization of the Petroleum Exporting Countries (OPEC) in 1971, at the height of an oil boom. Membership gave the country a voice in global production decisions and pricing strategies.
1977 – Creation of the NNPC
The Nigerian National Petroleum Corporation (NNPC) was created in 1977 through the merger of the Nigerian National Oil Corporation with the Ministry of Petroleum Resources, giving the state full control over oil exploration, production, and marketing.
1973 – Fuel Subsidy Introduced
In response to the 1973 Arab oil embargo and soaring global prices, the Yakubu Gowon government introduced a fuel subsidy to protect Nigerians from rising costs.
General Gowon’s administration increased petrol prices by 40 percent from six kobo per litre to nine kobo per litre, while cushioning consumers through the subsidy regime. Although intended as a temporary fiscal response to global oil shocks, this policy soon became one of Nigeria’s most enduring and expensive economic programs.
1979 – The First Oil Boom and Bust
By 1979, Nigeria’s output exceeded 2 million barrels per day, making it one of the world’s top producers. Oil revenues transformed the economy but also deepened dependence. When global oil prices collapsed in 1986, Nigeria’s economic vulnerability became starkly evident.
1999 – Entry into Deepwater Oil
In 1999, major offshore discoveries at Chevron’s Agbami field and ExxonMobil’s Erha field opened a new frontier for Nigeria. Located over 100 km offshore at water depths exceeding 1,200 meters, these finds signaled the country’s entry into deepwater oil exploration and production.
2000 – Subsidy Restructuring under Obasanjo
President Olusegun Obasanjo’s government raised pump prices in 2000 from about ₦20 to ₦22 per litre, effectively restructuring the subsidy.
In 2000, as a civilian president, Obasanjo’s administration faced severe supply challenges from refineries in Port Harcourt, Warri, and Kaduna. To address this, he set up a committee to review pricing and distribution. Its recommendations led to the creation of the Petroleum Products Pricing Regulatory Committee (PPPRC), which became the Petroleum Products Pricing Regulatory Agency (PPPRA) in 2003. The PPPRA lasted until 2021, when it was scrapped under the Petroleum Industry Act (PIA).
2008 – The Petroleum Industry Bill (PIB) Emerges
The Goodluck Jonathan administration introduced the Petroleum Industry Bill (PIB) in 2008, aiming to overhaul fiscal and regulatory frameworks. Although reform was urgently needed, the PIB stalled in the legislature for years, becoming one of Nigeria’s most protracted policy battles.
2021 – Petroleum Industry Act (PIA) Passed
After nearly two decades of failed attempts, the PIB was signed into law as the Petroleum Industry Act (PIA) in August 2021 by President Muhammadu Buhari. The Act created new regulators, restructured NNPC into a commercial entity, and revised fiscal terms to attract investment.
2023 – Dangote Refinery Commissioned
Nigeria achieved a major milestone in May 2023 with the commissioning of the 650,000-bpd Dangote Refinery in Lagos. As Africa’s largest single-train facility, it has the potential to meet domestic demand and transform Nigeria into a net exporter of refined products.
2023 – Subsidy Finally Removed
Just days later, on May 29, 2023, newly inaugurated President Bola Tinubu announced the end of Nigeria’s decades-old petrol subsidy. The policy ended officially on May 31, with pump prices doubling overnight. While controversial, the move was aimed at freeing fiscal space for other national priorities.
The Road Ahead
Nigeria’s petroleum journey mirrors its broader economic history, rich in opportunity but shaped by policy struggles, global price cycles, and structural dependence. At 65, the country faces a crossroads: whether to finally diversify beyond oil or remain tethered to the fortunes of crude.
