When President Bola Ahmed Tinubu assumed office in 2023, he made a bold promise to revolutionize Nigeria’s oil sector, aiming to increase daily crude oil output to 2.6 billion barrels per day (bpd) by 2027.
Sceptics doubted his ability to deliver, but recent developments suggest that Tinubu’s administration is making significant strides towards achieving this goal.
“We shall work in a coordinated manner to implement key reforms in the energy sector and collaborate to stem oil theft and vandalisation of fuel infrastructure to tap the current high oil prices,” the former governor of Lagos State said at a dialogue organised by the Nigerian Economic Summit Group (NESG) and other business leaders in Lagos in January 2023.
‘Tinubu — Walking His Talk’
Even though Nigeria is abundantly blessed with other natural resources, its crude oil has been its major revenue for decades. As soon as President Tinubu was sworn into office, he hit the ground running as promised. Firstly, he scraped the monstrous subsidy on fuel.
President Tinubu’s commitment to reforming the oil sector is evident in his appointment of Hon. Heineken Lokpobiri, a former senator, as Minister of State for Petroleum.
Lokpobiri has been tasked with resolving challenges affecting the petroleum sector, including crude theft, lack of oil investments, and further development of the country’s oil assets.
The Oil Theft Menace
Nigeria’s oil sector has long been plagued by oil theft, with estimates suggesting that the country loses a staggering $10 billion annually to this menace. This has not only affected investments in other critical sectors but also discouraged foreign investors from doing business in Nigeria. However, the Tinubu administration has taken a holistic approach to tackling oil theft, destroying over 5,500 illegal refineries and 4,480 illegal connections to pipelines as of January 2024.
Experts note that since the federal government has been destroying illegal refineries and disconnecting illegal connections at the pipeline, the NNP, International Oil Companies and local producers have been accessing export terminals for their crude with ease.
They added that by the time the government finishes revolutionising the oil sector, Nigeria will retain its position in the coterie of oil-producing countries.
Increased Crude Oil Output
The results are already showing. According to a recent report by the PUNCH newspaper, Nigeria’s daily crude oil output has reached 1.7 billion barrels per day (bpd), a significant increase from the 1.1 billion bpd recorded in 2023.
Experts commend President Tinubu for walking his talk and urge him to remain focused on implementing his RENEWED HOPE agenda.
Expert Insights
Energy experts note that the increase in crude oil output is a testament to the effectiveness of President Tinubu’s policies.
They contend that with the continued destruction of illegal refineries and the disconnection of illegal pipelines, the country can expect even more significant increases in the future.
Economic Implications
The impact of increased crude oil output on Nigeria’s economy cannot be overstated. With more revenue generated from oil sales, the government will have the needed cash to implement various people-oriented programs, including infrastructure development, healthcare, and education.
