On Sunday, President Bola Ahmed Tinubu heralded a significant turnaround in Nigeria’s oil and gas sector, highlighting a rise in crude production to 1.6 million barrels per day.
In a national address, the president attributed this positive development to the reforms he introduced in May 2024, aimed at addressing deficiencies in the Petroleum Industry Act (PIA).
As a result of President Tinubu’s directives and the leadership of the Nigerian National Petroleum Company Limited (NNPCL), Nigeria’s crude oil output saw an increase to 1.61 million barrels per day in July 2024.
In his Sunday morning address, President Tinubu emphasized the revitalization of the previously declining oil and gas industry, noting that international investors are beginning to return to Nigeria.
He stated, “Our once-declining oil and gas sector is witnessing a revival, fueled by the reforms I announced in May 2024 to rectify issues within the Petroleum Industry Act. Last month, we successfully boosted our oil production to 1.61 million barrels per day, and our gas resources are finally receiving the focus they deserve. We have welcomed back investors, with two Foreign Direct Investment deals exceeding half a billion dollars already signed.”
“Fellow Nigerians, we are fortunate to possess abundant oil and gas resources, yet we inherited a situation where the country relied heavily on oil-derived petrol, neglecting our gas potential to energize the economy. We have been expending our foreign currency reserves subsidizing imports.
To combat this, we swiftly initiated our Compressed Natural Gas Initiative (CNG) to energize our transportation sector and lower costs. This initiative is projected to save over two trillion Naira monthly, which was previously spent on importing PMS and AGO, allowing us to redirect our resources toward healthcare and education.”
“To further this goal, we will distribute one million kits at minimal or no cost to commercial vehicles that transport people and goods, which currently consume 80% of the imported PMS and AGO.”
“We are already distributing conversion kits and establishing conversion centers across the nation in collaboration with the private sector. This CNG initiative is expected to reduce transportation expenses by about 60% and help combat inflation.”
