Oil and gas dominate the extractive sector. Nigeria, in 2011, produced 2.9% and 1.2% of crude oil and gas, respectevely, worldwide. As of 2011's figures according to BP Statistical review, Nigeria holds 2.3% and 2.5% of crude oil and gas worldwide reserves. As Africa’s leading crude oil producer, Nigeria accounted for about 24% of african and about 2.9% of total world crude oil production in 2010. The state-owned Nigerian National Petroleum Corp. (NNPC) reported that crude oil output in 2011 increased by about 15% compared with that of 2009. 

The hydrocarbon sector, which included crude oil and natural gas production, accounted for about 16% of Nigeria’s real gross domestic product in 2011. In 2011, the oil industry has accounted for 95% of exports, estimated of more than 100 billion US$ , and over 80 percent of government revenue. The sector is dominated by joint venture operations between the Nigerian government and six major international oil companies—Shell, Mobil, Chevron, Agip, Elf, and Texaco. Nigeria’s reserves of natural gas—an estimated 159 trillion cubic feet of proven reserves—are among the ten largest in the world, but gas production is less significant economically.

The Federal government holds all mineral rights and is responsible for issuing exploration and development licenses. The Minerals and Mining act, 2007, and the Petroleum act of 1969 form the legal basis for exploration and production activity in the mineral sector. To diversify the oil-based economy, government policy continued to promote investment in the exploration for and the development of solid minerals.