Nigeria’s petroleum sector recorded a sharp slowdown in economic growth in the first half of 2026, the National Energy Support Group (NESG) said, even as crude oil production remained relatively stable.
The NESG report pointed to persistent power shortages as the main factor behind the downturn, noting that inadequate electricity supply has hampered refinery operations and downstream activities across the sector.
Oil firms, the report added, have been reluctant to invest in new projects or upgrade existing infrastructure despite posting strong profits, with the electricity crisis cited as a major deterrent.
As Africa’s largest oil producer, Nigeria’s petroleum industry is a key driver of the national economy. The sector’s slowdown in 2026 could have broader implications for the country’s economic growth and energy security.
The NESG’s findings highlight the urgent need for reforms in the power sector to support the oil industry’s expansion and sustain Nigeria’s economic momentum.
<small>Source: Punch Nigeria — read the original story there.</small>