President Bola Ahmed Tinubu is neglecting the core sector that generates Nigeria’s much-needed foreign currency. Instead of focusing on the oil and gas sector, which could drive significant growth and stability, Tinubu is concentrating on unprofitable sectors.
Despite knowing where the real issues lie, Tinubu has been appointing new personnel to non-core areas. Recently, he announced appointments in federal agencies such as the National Directorate of Employment, Nigeria Hydrological Services Agency, and National Productivity Centre. To be factual, these appointments do not address the immediate economic challenges impacting everyday Nigerians.
The oil and gas sector, the heart of the economy, needs focused leadership and strategic investment. Only then can Nigeria begin to heal from its economic struggles and move towards a more prosperous future for all its citizens. According to the 80/20 rule, we should focus on the 20 percent of activities that generate 80 percent of our results. Yet, not enough has been done strategically for the oil and gas sector, which constitutes a significant portion of Nigeria’s revenue and is plagued by inefficiencies, corruption, and underinvestment.
Nigeria’s oil production crisis is alarming, with the country now producing 1.3 million barrels per day less than it used to. This decline undermines Nigeria’s position in the global oil market and indicates economic challenges for millions of Nigerians. Despite having a production quota of 1.58 million barrels per day set by OPEC, Nigeria has been falling significantly short, producing only 1.25 million barrels per day. This shortfall represents a critical failure in leadership and management within the oil sector.
The current administration’s inability to address these issues has led to increased poverty, unemployment, and economic instability. The current leaders have failed to prioritise the nation’s most valuable economic asset. They should step down to make way for more competent leadership that can restore Nigeria’s oil production capacity and economic health.
Data from the Nigerian Upstream Petroleum Regulatory Commission indicate that crude oil theft, pipeline vandalism, and force majeure at key terminals are primary reasons for Nigeria’s failure to meet its OPEC quotas.
A May report by OPEC noted that Nigeria’s daily oil production dipped to 1.25 million barrels per day, down from 1.28 million barrels per day in April, reflecting a loss of 30,000 barrels per day. As of 2024, Nigeria’s OPEC quota is set at 1.58 million barrels per day, down from 1.74 million barrels per day in 2023. This reduction further highlights the challenges in achieving stable and sustainable oil production levels.
Despite these known facts, President Tinubu has yet to overhaul the oil sector, specifically the NNPC. The comparison with the financial sector, where CBN Governor Olayemi Cardoso has demonstrated significant improvements, is striking. The NNPC requires a similar overhaul, with a focus on transparency, accountability, and strategic investment.
A result-oriented leader who prioritises infrastructural sustainability and operational excellence could turn the tide for Nigeria’s oil and gas sector. This leader must be empowered with a clear mandate to rebuild the NNPC within five years, focusing on reducing crude oil theft, pipeline vandalism, and ensuring that Nigeria meets its OPEC production quotas. The survival of Nigeria’s economy hinges on the efficient management of its oil and gas resources, and this can only be achieved through visionary and effective leadership at the helm of the NNPC.
In addition to that, Nigeria’s natural gas reserves are a hidden treasure, with the country sitting on an impressive 5.5 trillion cubic metres of natural gas, accounting for 2.9 percent of the world’s total reserves. Despite this, Nigeria continues to lag behind countries like Russia, which boasts reserves of 38 trillion cubic metres. While Russia has effectively leveraged its gas endowment to become a global energy powerhouse, Nigeria’s gas sector remains grossly underdeveloped due to chronic mismanagement and lack of strategic investment.
Nigeria flares 40 percent of its gas production, contributing to environmental degradation and wasting potential revenue. In 2023 alone, Nigeria burned natural gas worth approximately $0.96 billion, equivalent to the annual electricity use of 625 million citizens. It is high time Nigeria learnt from Russia and harnesses its natural gas reserves to drive economic growth, energy independence, and environmental sustainability.
Nigeria is sitting on immense potential wealth. The question is, why is this potential not being realised? Investment in natural gas could revolutionise Nigeria’s economy. Yet, the country is still experiencing power supply instability, foreign currency shortages, and economic instability—honestly, it’s sad!
Nigeria’s economic future depends on bold, decisive action. President Tinubu must refocus his attention on the oil and gas sector, appointing leaders who can bring about real change and drive the country towards economic stability and growth. The time for dancing on the edges is over. It’s time to tackle the core issues head-on.
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