Nigeria needs oil revenue to drive economic diversification – Elumelu

Tony Elumelu, founder of Heirs Energies, has emphasized the need for increased oil production to generate revenue for Nigeria’s economic diversification.

Speaking at the 2025 Heirs Energies Petroleum Industry Leadership Forum on Thursday in Abuja, Elumelu highlighted the importance of massive investments in oil and gas to sustain industrialization and ensure energy security.

“We cannot industrialize Africa, especially Nigeria, without improving access to energy and electricity,” he said.

Elumelu, also the Group Chairman of Heirs Holdings, noted that his company acquired OML 17 from Shell about four to five years ago and currently produces over 53,000 barrels of oil per day, making it one of Nigeria’s leading indigenous oil and gas producers.

Elumelu pointed out that under former President Muhammadu Buhari, Nigeria’s oil production dropped to less than 1 million barrels per day (bpd). However, he acknowledged an improvement under the Tinubu administration, with daily production now at 1.8 million barrels.

“We are happy with the improvement, but we are not satisfied. We need to push production beyond 2 million barrels per day because oil revenue is essential for diversifying Nigeria’s economy,” he said.

Despite this progress, he acknowledged ongoing challenges in the power sector, particularly gas supply constraints affecting electricity generation.

“Transcorp is Nigeria’s leading power-generating company with an installed capacity of 2,000 megawatts, but we are constrained by gas supply,” Elumelu explained.

To address this issue, Heirs Energies is focusing on increasing gas production alongside oil extraction to boost industrial output and power generation.

Elumelu revealed that Heirs Energies is expanding its oil production capacity, aiming to reach 100,000 barrels per day in the coming years.

“Even though 53,000 barrels per day is significant, it is not enough. We are strategizing over the next three days on how to scale up production,” he said.

He emphasized the importance of collaboration between industry leaders, policymakers, and investors to achieve these targets.

“With the right policies and executive support from President Bola Tinubu’s administration, we are confident that we can surpass our production goals,” he added.

Elumelu’s comments come amid Nigeria’s rising crude oil production, with the Organisation of Petroleum Exporting Countries (OPEC) reporting that the country’s daily crude output reached 1.53 million barrels in January—the first time it met OPEC’s quota since 2024.

With Heirs Energies and other indigenous producers ramping up production, Nigeria is positioning itself for stronger economic growth and energy security in the coming years.