Tony Elumelu, the founder of Heirs Energies and Chairman of UBA Group, has said that Nigeria must ramp up crude oil production by up to 2 million barrels daily.
Elumelu noted that the country needs funds from the oil sector to drive the development of other sectors and eventually diversify the economy.
He observed that while the current 1.8 million barrels daily is commendable, Nigeria needs production to cross the 2 million benchmark.
Tony Elumelu said that at the 2025 Heirs Energies’ Petroleum Industry Leadership Forum on Thursday.
Elumelu commended the improvement in crude oil production from less than 1 million bpd under former President Muhammadu Buhari, to 1.8 million bpd under President Bola Tinubu.
He stated;
The Nigerian billionaire emphasized the need for more investments into energy and electricity, noting that the money from the oil sector can help, TheCable reports.
He said;
Elumelu acknowledged the challenges facing Nigeria’s power sector, adding that Transcorp Power, despite having 2000 MW installed capacity, is yet to attain full capacity because of gas supply constraints.
Recall that Nigeria’s oil revenues have been predicted to decline in 2025 if Trump’s energy policy leads to oversupply and a crash in oil prices.
Mr. Elumelu disclosed that Heirs Energies has a target to increase its crude production from 53,000bpd to 100,000bpd, and the forum would come up with strategies to achieve it.
He expressed confidence that the company will hit this target, with strong collaborations with other industry leaders and policymakers, and with the incentives provided by the federal government.
Recall that Nigeria’s non-oil revenues have risen to 78% of total revenues, while oil revenues now account for 21.5% – a development the CBN says is caused by challenges in the oil sector.
Meanwhile, major international oil companies in Nigeria are set to join the naira-for-crude deal with Dangote Refineries.
Other modular refineries in the country will also benefit from the arrangement as they can get crude supply from the IOCs.
Petroleum marketers commended the new development and outlined their expectations and concerns.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
