Nigeria’s $1trn economy target not ambitious enough – Kyari

Mele Kyari, Group Chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL) has stated that with the imbedded resources in Nigeria, the $1trillion economy target of the federal government has become less ambitious and must be scaled up.

Kyari disclosed this during Tuesday’s Nigerian International Energy Summit in Abuja. According to him, Nigeria is a major producer of petroleum products in Africa, placing it in an advantageous position to grow its economy beyond the $1 trillion target.

He said, “Oil will be here even by 2050, contributing to over 29 percent of the global energy mix and increasing demand of at least 100 million barrels of oil, even by 2050, so oil and gas will be here. And we understand this, and we know the significance but it must be connected globally, and that’s why the world recognizes Africa as the next destination providing greater support to the energy markets.

“As we all know, Nigeria has the largest economy, that’s not in dispute but we have the potential of growing even bigger. And I think the $1 trillion GDP is too small, that’s not very ambitious. I think we can do better than this and the projection is showing that this country will do better than this. I’m sure we know that $1 trillion is maybe the balance sheet of one IT company somewhere.

“We will do better than this, this country has potential for doing this, and this industry will surely be the biggest contributor to this development. And that’s already happening.”

Kyari also noted the return of investors’ confidence in the Nigerian Petroleum industry, stating that the Tinubu-led administration has successfully introduced policies that ensure investors get returns for their investments.

“Investors have seen that when they put their money in our country today, in our businesses, particularly in the oil and gas sector, they can get back their money, they can get their returns, and there’s also a stable fiscal environment that will give them a long-term return on their investment. And I’m sure that is why we are seeing a number of investors coming back into our country, and it’s working for us.

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Speaking further Kyari said that the nation’s gas resources were currently being harnessed to address the gaps in citizen’s access to clean cooking fuel and acces to electricity.

He explained that for Nigeria, gas is not just an transition fuel but a better alternative fuel hence the government’s commitment to developing gas infrastructure in the country, aimed at ensuring that gas are delivered to domestic market.

“Over 70 percent of our country may not have access to clean cooking fuel. This is true and of course, access to electricity is about 50 percent of our population. So there is so much space there that gas can fill. And that’s why this country has taken the next step, which is to building the necessary infrastructure, creating the necessary framework, creating the necessary fiscal incentives that are required.

“And at this point, it’s also important to highlight that this won’t happen except we have the right leadership. And this leadership has brought something on the table, creating the fiscal tax for gas. As we know today, many of the FIDs that were announced in recent times would not have come up, if not for the changes that Mr. President introduced.

“The executive orders would do a number of things. Ease of business, ease of procurement, providing new fiscal incentives for non-associated gas, and even providing some incentives so that even the oil investment can happen. And that’s why you are seeing all this is happening.”

In his remarks, Nicholas Ella, permanent Secretary, ministry of petroleum resources explained that Nigeria is focused on leveraging its vast natural gas resources as a feedstock for blue hydrogen while exploring green hydrogen opportunities powered by renewables.

For him, Nigeria’s strategic focus on natural gas as a transitional fuel aligns with global decarbonization goals while unlocking new economic opportunities.

“Our National Gas Expansion Program (NGEP), Nigeria Gas Transportation Network Code, and the Decade of Gas initiative have laid the foundation for transformative projects to boost domestic gas utilization, reduce flaring, and foster industrialization.

“With the surging global demand for cleaner fuels, Nigeria strategically positions itself as a reliable partner in the worldwide energy transition,” he said.

Speaking further, Ella noted that Africa, with its vast energy resources, is at a crossroads of immense opportunities and the global push for sustainable energy solutions, adding that Nigeria, as the continent’s largest oil producer and a leading gas powerhouse, is committed to playing a pivotal role in this evolving energy landscape.

He noted Nigeria’s ongoing efforts to establish the African Energy Bank (AEB), in line with commitment to advancing Africa’s energy security and growth.

The Bank, spearheaded by the Ministry of Petroleum Resources in collaboration with the African Petroleum Producers Organization (APPO), he said, aims to create a dedicated financial institution focused on unlocking energy investments across the continent.

“The AEB will serve as a vital funding vehicle to bridge Africa’s energy infrastructure gaps, catalyze upstream, midstream, and downstream projects, and drive sustainable energy solutions that align with the continent’s unique needs.”