Business mogul Tony Elumelu has called for a significant boost in Nigeria’s oil production, stressing that increased output is crucial to financing the country’s economic diversification and development.
Speaking at the Nigeria Petroleum Industry Leadership Discourse in Abuja, Elumelu, Chairman of Heirs Holdings, underscored the vital role of oil revenues in industrialisation, infrastructure development, and energy security.
The event, themed “Nigeria’s Oil Production Growth Roadmap: Acceleration Imperatives,” was organised by Heirs Energies, a subsidiary of Heirs Holdings, to bring together key industry stakeholders and policymakers to strategise on scaling up oil production.
While acknowledging ongoing global conversations about energy transition, Elumelu, who also chairs United Bank for Africa (UBA) and Transcorp Group, insisted that Africa’s priority must remain energy security.
“We need massive investments in oil and gas to power industries, support businesses, and ensure electricity access for both homes and enterprises,” he stated.
Nigeria Still Underperforming on Oil Output
Elumelu noted that although President Bola Tinubu’s administration has improved production levels, Nigeria is still falling short of its OPEC quota.
“You know, under Buhari’s administration, we dropped below 1 million barrels per day. Now, under the current administration, we are producing 1.8 million barrels per day, which is an improvement. But we are not satisfied with that figure,” he said.
“We want to take it beyond 2 million barrels per day because we need oil revenue to fund Nigeria’s diversification and national development.”
He stressed that ramping up crude oil production would provide the foreign exchange necessary to stabilise the naira, boost industrialisation, and enhance national security.
Gas Constraints Hindering Power Generation
As Chairman of Transcorp Group, Elumelu highlighted the challenges facing Nigeria’s power sector, revealing that Transcorp Power, one of Nigeria’s largest power generation companies, has a 2,000-megawatt capacity but cannot operate at full potential due to gas supply shortages.
He urged greater collaboration between the government, industry players, and investors to increase daily oil production to 2.5–2.7 million barrels, saying this would strengthen the nation’s economy.
Elumelu also commended policy reforms and executive orders introduced by President Tinubu in the past year, which, he noted, have boosted investor confidence, improved security, and enhanced the overall business climate in the oil sector.
Heirs Energies’ Expansion Plan
Elumelu revealed that since Heirs Energies acquired OML 17 from Shell, oil production has increased from 21,000 barrels per day to 53,000 barrels per day, with a target of reaching 100,000 barrels per day.
He expressed optimism that Nigeria can exceed the 2 million barrels per day mark if stakeholders work together to expand production capacity, improve infrastructure, and strengthen security around oil facilities.
While Heirs Energies aims to integrate downstream operations in the future, Elumelu emphasised that the company’s current focus remains boosting crude oil production to fuel further economic transformation.
