The Society of Energy Editors (SEE) has predicted major improvements in Nigeria’s energy sector in early 2025, supported by President Bola Ahmed Tinubu’s proposed N49.7 trillion budget.
The budget focuses on increasing crude oil production to 2.06 million barrels per day (bpd), which is expected to drive economic growth and help reduce inflation. The group believes inflation could drop from its current 34.6% to 15% by the end of 2025 if the plan succeeds.
In its latest report, Nigeria Energy Outlook Q1, 2025, SEE highlighted key areas to watch in the sector, including oil exploration, refining, gas production, power generation, and labour relations.
However, the group stressed that achieving the government’s crude oil production goals will require addressing the ongoing security challenges in the Niger Delta region.
“Nigeria plans to launch a new oil licensing round in 2025, focusing on undeveloped oil blocks to increase reserves and production,” the report noted. But for this to succeed, the government must show strong commitment and ensure the licensing round happens as planned.
The report also pointed to the Dangote Refinery as a game-changer. Once operational, it could significantly cut fuel imports and reduce pressure on government subsidies. However, the refinery’s success depends on a steady supply of crude oil from the Nigerian National Petroleum Company Limited (NNPCL).
SEE remains optimistic about the potential for the energy sector to stimulate economic recovery, provided the government takes bold steps to address these challenges.