Expert urges FG to foster sustainable growth in oil, gas sector
By Yunus Yusuf
Professor Emeritus of Petroleum Economics, Louisiana State University, Prof. Wumi Iledare, has called on the Federal Government to prioritise sustainable growth in Nigeria’s oil and gas industry.
Speaking to the News Agency of Nigeria (NAN) on Monday in Lagos, Iledare urged the Tinubu administration to adhere to the provisions of the Petroleum Industry Act (PIA) 2021 and maintain policy consistency to attract and retain investors.
He also urged the government to ensure transparency in oil transactions and refinery operations.
“There is a pressing need to invest in human capital development, enhance local content, and strengthen public engagement to foster sector growth,” he said.
As President Bola Tinubu’s administration attained its second year, Iledare noted that attention had been shifting to the performance of Nigeria’s vital oil and gas sector.
He acknowledged the administration’s efforts to reform and revitalise the industry but highlighted ongoing challenges.
“Nigeria’s crude oil production remains below its 1.8 million barrels per day (bpd) OPEC quota, fluctuating between 1.2 million and 1.4 million bpd.
“Persistent problems such as oil theft, pipeline sabotage, inadequate upstream investments, and slow implementation of the PIA continue to limit production potential,” he explained.
In the downstream sector, Iledare pointed out that although local refining capacity is improving, it has yet to reach full maturity.
He said that in spite of the partial start of operations at the Dangote Refinery, Nigeria still relies heavily on imported refined petroleum products.
He further identified delays in rehabilitating state-owned refineries, inconsistent regulations for modular refineries, and the ongoing reliance on fuel imports as major obstacles to affordable and available transportation fuel.
“Over the past two years, structural challenges have been compounded by incomplete fuel subsidy reforms, which lacked adequate measures to protect the economy from inflationary effects.
“Although subsidies were removed in 2023, inflation surged without sufficient social safety nets,” he said.
He also larmented the slow reforms within the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with the depreciation of the Naira, which had increased operational costs.
“A coherent gas-to-power or clean energy roadmap has yet to be implemented,” Iledare emphasised.
To boost crude oil production, he recommended that the government strengthen security partnerships with host communities and private operators.
He need to also implement fiscal incentives to attract investments, and resolve joint venture funding bottlenecks, actions essential to achieving the target of three million barrels per day.
Iledare said that there was need for additional policy measures to improve fuel availability and affordability should include the full operationalisation of the Dangote Refinery with transparent supply chains.
He said it would also enhance the acceleration of refinery rehabilitation projects, and the establishment of clear, stable regulations for private refineries.
While acknowledging the Tinubu administration’s vital reform efforts, Iledare cautioned that systemic issues continue to limit their impact.
He noted that with decisive, bold, and coordinated policy actions, Nigeria’s oil and gas sector could become a catalyst for inclusive economic transformation.
