Chairman of Heirs Holdings, Tony Elumelu, has said that Nigeria needs to increase oil production to fund the country’s economic diversification and development.
He stated this in an address at the Nigeria Petroleum Industry Leadership Discourse, held in Abuja.
The meeting, convened by Heirs Energies, which is under the aegis of Heirs Holdings, was themed “Nigeria’s Oil Production Growth Roadmap: Acceleration Imperatives”.
Elumelu emphasised the importance of oil revenues in driving industrialisation, energy security, and infrastructural growth.
He pointed out that despite global conversations around energy transition, Africa’s priority should be energy security, adding that massive investment in oil and gas is necessary to power industries, support businesses, and ensure access to electricity for households and enterprises.
Elumelu further noted that he is no longer a banker but an investor, as his company, Heirs Energies, which acquired OML 17 from Shell a few years ago, currently produces 53,000 barrels of oil per day.
He expressed concerns about Nigeria’s oil production levels, stating that while output had improved under President Bola Tinubu’s administration, the country was still underperforming compared to its OPEC quota.
He recalled that during the Buhari administration, Nigeria’s oil production dropped below one million barrels per day.
He stated that while production has now recovered to 1.8 million barrels per day, the country must aim for more than 2 million barrels per day to generate the revenue needed to develop and diversify the economy.
Elumelu said that increasing oil production was key to generating foreign exchange, stabilising the naira, and improving national security.
He added that boosting crude oil output would provide the financial resources required for industrialisation and infrastructure development, particularly in the power and manufacturing sectors.
He noted that despite having the highest power generation capacity in the country at 2,000 megawatts, Transcorp Power was constrained by gas shortages.
According to him, by increasing gas production alongside oil, industries would have the fuel needed to operate at full capacity, power generation companies would be able to increase electricity supply, and Nigerians would enjoy improved access to electricity.
