Elumelu urges collaboration, reforms to boost oil output
Chairman of Heirs Holdings and the United Bank for Africa (UBA), Tony Elumelu, said in Abuja on Monday that only strong collaboration, regulatory reforms, improved security, and an overhaul of ageing infrastructure can increase Nigeria’s oil production above 2 million barrels per day (MMBOPD).
Speaking at the third-anniversary celebration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Elumelu stated that a new plan by the commission to increase oil output by an additional 1 million barrels per day is critical to revitalising the country’s upstream sector and sustaining national development.
“Nigeria’s oil production has declined from peaks of over 2 million barrels per day to recent lows below 1.5 million. This has led to lost revenues, reduced global market share, and missed opportunities for development,” Elumelu said, describing the situation as a national challenge that must be addressed through bold action and cooperation.
Elumelu outlined the key challenges affecting production, including ageing infrastructure, security issues in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift toward renewable energy.
“As a nation, we cannot allow these challenges to erode our economy. We must rebuild our foundation to secure the future for the next generation,” he noted.
He praised NUPRC’s leadership for launching the 1MMBOPD Project, describing it as a critical initiative not only to increase oil output but also to spark comprehensive reforms across the energy value chain.
“This project is not just about boosting production; it’s about catalysing a sustainable framework for long-term growth in our upstream sector,” he explained.
Recommending ways to achieve the plan, Elumelu stressed the importance of upgrading ageing facilities to improve efficiency and reduce operational downtime, implementing advanced technologies, and engaging local communities to protect assets.
He also called for the creation of a transparent, efficient regulatory environment to attract investment, stressing the need to encourage both domestic and foreign investors to participate in Nigeria’s oil and gas sector.
Elumelu noted the importance of leveraging cutting-edge technologies to optimise production and minimise environmental impact, adding that maximising gas utilisation would diversify the country’s energy portfolio, reduce flaring, and support industrialisation.
“Access to electricity, powered by gas, is crucial for Nigeria’s industrial growth,” he said.
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