Tony Elumelu, the chairman of Heirs Holdings, has stressed the urgent need for Nigeria to pump out more crude oil to strengthen the economy, create jobs, and fund key infrastructure projects.
Speaking at the Nigeria Petroleum Industry Leadership Discourse in Abuja, Elumelu said increasing oil output is vital for the country’s economic stability. The event, organised by Heirs Energies, focused on strategies to boost crude oil production.
Why More Oil Production Matters
Elumelu acknowledged the global shift towards renewable energy but maintained that Nigeria must prioritise energy security first. He explained that a higher oil output would generate much-needed revenue to stabilise the naira, fund industries, and power homes across the country.
“You remember that under the Buhari administration, oil production dropped to below 1 million barrels per day. But now, under President Bola Tinubu, we’ve seen an increase to 1.8 million barrels per day. While that’s progress, we must push beyond 2 million barrels to secure our economic future,” Elumelu said.
Oil Revenue and National Growth
Nigeria depends heavily on oil earnings, and Elumelu emphasised that higher crude oil production would:
- Bring in foreign exchange, helping to strengthen the naira.
- Boost industrialisation, ensuring factories have the energy supply they need.
- Fund national infrastructure, such as roads, power plants, and schools.
Elumelu, who also chairs Transcorp Group, revealed that Transcorp Power has the capacity to generate 2,000 megawatts of electricity but cannot operate at full capacity due to gas shortages.
“If we produce more oil, we’ll have more gas, which means more power supply for businesses and homes,” he said.
How to Reach 2.5 Million Barrels Per Day
Elumelu believes that Nigeria can exceed 2 million barrels per day if all stakeholders government, oil companies, and investors work together. He noted that recent policy reforms under President Tinubu have improved security and investor confidence in the oil sector.
Sharing Heirs Energies’ progress, he said the company increased production from 21,000 barrels per day to 53,000 barrels since acquiring OML 17 from Shell. The target now is to hit 100,000 barrels per day.
“If we keep expanding, improving infrastructure, and securing our oil pipelines, hitting 2.5 million barrels per day is very possible,” he stated.
What About Refining?
While Heirs Energies is currently focused on oil production, Elumelu mentioned that refining will be part of their future plans. He explained that once a company secures a steady supply of crude oil, it can then venture into refining, petrochemicals, and fertiliser production.
“Nigeria needs to secure its crude oil supply first before we can truly develop a strong refining industry,” he added.
With global oil prices fluctuating and the naira under pressure, boosting oil production is one of the fastest ways Nigeria can strengthen its economy. Elumelu’s message is clear: the more oil Nigeria produces, the more jobs, infrastructure, and economic stability the country will enjoy.