Tony Elumelu, Chairman of Heirs Holdings, stresses the importance of increasing oil production to drive Nigeria’s economic diversification and development. Speaking at the Nigeria Petroleum Industry Leadership Discourse in Abuja, Elumelu outlines how oil revenue remains crucial for industrial growth, energy security, and infrastructure development.
The event, organized by Heirs Energies, a subsidiary of Heirs Holdings, gathers industry leaders and policymakers to discuss strategies for boosting oil production. The discourse, themed “Nigeria’s Oil Production Growth Roadmap: Acceleration Imperatives,” focuses on expanding the country’s crude oil output to support national economic goals.
Oil Production Drives Economic Transformation
Elumelu, who also chairs the United Bank for Africa (UBA) and Transcorp Group, notes that while global discussions around energy transition continue, Africa’s immediate concern is achieving energy security. He emphasizes the need for significant investments in oil and gas infrastructure to power industries, support businesses, and ensure reliable electricity for homes and enterprises.
He acknowledges that under President Bola Tinubu’s administration, Nigeria’s oil production has risen to 1.8 million barrels per day, an improvement from the previous administration’s output. However, Elumelu insists this is not enough, stating, “We must push production beyond 2 million barrels per day to fund economic diversification and support national development.”
Elumelu points out that increasing oil production will generate foreign exchange, stabilize the naira, and improve national security. He adds that higher crude oil output will provide the financial resources needed for industrialization and infrastructure development, particularly in sectors like power generation and manufacturing.
As Chairman of Transcorp Group, Elumelu reveals that Transcorp Power, one of Nigeria’s top power generation companies, currently operates below its full capacity of 2,000 megawatts due to limited gas supply. He highlights the urgent need for enhanced oil and gas production to meet the country’s energy needs.
Elumelu calls for stronger partnerships between the government, industry players, and investors to raise Nigeria’s crude oil output to between 2.5 and 2.7 million barrels per day. He adds that policy reforms and executive orders signed by President Tinubu over the past year have strengthened investor confidence, improved security, and created a more favorable business environment in the oil sector.
Future Refining Plans and Expansion Prospects
Elumelu reveals that when Heirs Energies acquired Oil Mining Lease (OML) 17 from Shell, production was at 21,000 barrels per day. Since then, output has increased to 53,000 barrels per day, with a target of reaching 100,000 barrels per day in the near future.
While Heirs Energies plans to expand into downstream operations eventually, Elumelu states that the company’s immediate focus is on growing crude oil production. He adds that once production capacity is secured, transitioning into refining, fertiliser manufacturing, and petrochemical production will become more feasible.
Elumelu concludes by asserting that Nigeria’s goal of producing 2.5–2.7 million barrels per day is achievable if the industry prioritizes production growth, strengthens infrastructure, and enhances security around oil facilities.
