FG targets 4m bpd oil production by 2030

The federal government has announced that it is looking forward to no less than 4 million barrels per day oil production and 10bcf of gas output by 2030.

Special Adviser to the President on Energy and head of the Energy Office of the Presidency, Mrs. Olu Verheijen, disclosed this in a statement on Thursday.

Verheijen, who is also coordinating the rollout of the reforms in the oil sector said this is possible, especially given the recent offshore oil and gas incentives announced by President Bola Tinubu.

“Since Nigeria’s last deepwater project – the Egina project – was approved in 2013, International Oil Companies operating in Nigeria have committed more than $82 billion in deepwater investments to other countries that they deem more competitive,” she said.

“Over the next few years, they plan to spend another $90 billion to develop deepwater oil and gas projects.

“This is the pool of funds that our reforms are targeting, and we intend to unlock between $5 billion to $10 billion of new investments in Nigeria in the near-to medium-term.”

It is a fact that Nigeria for some years has been unable to meet its Organisation of Petroleum Exporting Countries (OPEC) oil production quota, with the FG always blaming the problem on massive oil theft and lack of investment in the sector.

Verheijen, however, said in the press statement signed by the Stakeholder Manager in her office, Morenike Adewunmi, that since assuming office in May 2023, the federal government under Tinubu has embarked on a series of new reforms to improve the competitiveness of its oil and gas industry.

“This is aimed at bringing down the costs and timelines of doing business in a sector that continues to be the biggest earner of foreign exchange for the country,” she said.

“These reforms, which include three presidential directives issued in February 2024, will create tens of thousands of new jobs, improve foreign exchange earnings, stimulate tax revenues and contribute to Nigeria’s macroeconomic stability.

“President Tinubu to this end approved the issuance of two new sets of fiscal incentives: a Value Added Tax (VAT) waiver covering gas, diesel, electric vehicles and clean cooking equipment, and tax credits for new investments in the exploration and production of deepwater oil and gas.

“The new fiscal incentives are expected to take effect immediately as contained in documents issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

“The incentives are in alignment with the Presidential Gas for Growth Initiative, which aims to fast-track the development of natural gas, displace fossil fuels in transport, promote affordability of gas, and bolster the country’s energy security.

“Despite the intensifying urgency of the global energy transition, an estimated 76 per cent of Nigeria’s gas remains undeveloped.”