Tony Elumelu advocates increased oil production to drive Nigeria’s economic growth

The Chairman of Heirs Holdings, Mr. Tony Elumelu, has underscored the urgent need for increased crude oil production to fund Nigeria’s economic diversification and infrastructural development.

Speaking on Thursday at the Nigeria Petroleum Industry Leadership Discourse in Abuja, Elumelu emphasised the pivotal role of oil revenues in bolstering industrialisation, ensuring energy security, and accelerating national progress.

The high-profile discourse, themed “Nigeria’s Oil Production Growth Roadmap: Acceleration Imperatives”, was convened by Heirs Energies, a subsidiary of Heirs Holdings, bringing together industry leaders and policymakers to discuss strategies for ramping up oil output.

As Chairman of United Bank for Africa (UBA) and Transcorp Group, Elumelu highlighted that while global discourse increasingly favours energy transition, Africa’s immediate priority must be securing energy for economic stability.

He stressed the necessity of sustained investment in oil and gas to power industries, support businesses, and expand access to electricity for households and enterprises.

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Acknowledging the recent growth in oil production under President Bola Tinubu’s administration, Elumelu noted that Nigeria remains below its Organisation of the Petroleum Exporting Countries (OPEC) production quota.

“You know, under Buhari’s administration, we dropped below 1 million barrels per day. We are happy that under the current administration, we now produce 1.8 million barrels of oil daily. But we are not satisfied with that figure. We want to take it to over 2 million because we need oil money to diversify Nigeria away from oil. We also need the revenue to develop our country,” he stated.

Elumelu emphasised that boosting crude oil output would enhance foreign exchange earnings, stabilise the naira, and strengthen national security. He pointed out that oil revenues are crucial for financing critical sectors such as power generation and manufacturing.

Drawing attention to Nigeria’s power sector, Elumelu revealed that Transcorp Power, one of the country’s leading electricity generation companies, has a capacity of 2,000 megawatts but cannot operate at full capacity due to inadequate gas supply.

He called for increased investment in gas production and distribution to support the country’s electricity needs and industrial growth.

Elumelu also advocated for stronger collaboration between the government, industry stakeholders, and investors to meet the ambitious goal of increasing oil production to 2.5–2.7 million barrels per day.

He commended the policy reforms and executive orders signed by President Tinubu in the past year, noting their positive impact on investor confidence, security, and the overall business environment in the oil and gas sector.

He further disclosed that when Heirs Energies acquired Oil Mining Lease (OML) 17 from Shell, production stood at 21,000 barrels per day. However, it has since increased to 53,000 barrels per day, with a target of reaching 100,000 barrels per day in the near future.

Expressing optimism about surpassing the 2 million barrels per day mark, Elumelu urged stakeholders to focus on infrastructure expansion, security enhancement, and production growth. When asked about potential investments in refining, he confirmed that Heirs Energies intends to integrate downstream operations in the future. However, the company’s current priority remains on scaling crude oil production.

Elumelu concluded by reaffirming that Nigeria’s oil production target of 2.5–2.7 million barrels per day is achievable if the industry prioritises security, investment, and operational efficiency.