Professor Emeritus of Petroleum Economics at Louisiana State University, Prof. Wumi Iledare, has urged the Federal Government to focus on driving sustainable growth in Nigeria’s oil and gas sector.
In an interview in Lagos on Monday, Iledare called on the Tinubu administration to uphold the provisions of the Petroleum Industry Act (PIA) 2021 and ensure consistent policies to attract long-term investment.
He emphasised the importance of transparency in oil transactions and refinery operations, and highlighted the need for investment in human capital, local content development, and stronger public engagement.
As President Bola Tinubu’s administration marks its second year, Iledare noted that national attention is increasingly fixed on the performance of the oil and gas sector. While acknowledging reform efforts, he pointed out persistent issues that continue to hamper progress.
“Crude oil production remains below the 1.8 million barrels per day (bpd) OPEC quota, fluctuating between 1.2 and 1.4 million bpd due to oil theft, sabotage, underinvestment, and delays in PIA implementation,” he said.
In the downstream sector, Iledare noted that although refining capacity is gradually improving, Nigeria still depends largely on imported petroleum products. He identified delays in the rehabilitation of government-owned refineries, inconsistent policies for modular refineries, and fuel import dependence as key obstacles to fuel availability and affordability.
He also criticised the incomplete implementation of fuel subsidy reforms, saying the removal in 2023 led to inflation without adequate safety nets for vulnerable populations.
The slow reform pace at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with currency depreciation, were cited as factors increasing operational costs.
Iledare also noted the absence of a clear gas-to-power or clean energy roadmap.
To boost production and restore investor confidence, he recommended strengthening security collaboration with host communities, offering fiscal incentives, resolving joint venture funding issues, and fully operationalising the Dangote Refinery with transparent supply chains.
He also called for acceleration of refinery rehabilitation and the creation of stable regulatory frameworks for private refineries.
While recognising the administration’s reform initiatives, Iledare warned that systemic challenges continue to limit their effectiveness. With bold and coordinated policy actions, he believes the sector can become a driver of inclusive economic growth.
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