Oil Reserves Rise: Expert Calls for Transparency, Investment and Refinery Privatization

Nigerian oil expert Joe Nwakwue, Lead Partner at Zera Advisory & Consulting, applauded the Federal Government’s success in growing the nation’s oil reserves to 37.50 billion barrels. However, he urged the government to ensure transparency and continued growth in this crucial resource.

Celebrating Growth, Calling for Clarity

Nwakwue’s comments, made in an interview with the News Agency of Nigeria (NAN), highlighted the significance of this achievement. He emphasized the need for transparency, particularly regarding the sources of the reserve increase. NAN previously reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the reserves increase on April 19th, up from 37.046 billion barrels in May 2022.

Reserves Growth Demands Investment

Nwakwue pointed out that stagnant reserves had plagued the nation for years. This significant increase, exceeding a 200% replacement ratio, indicates that current production levels are insufficient. He called for increased investment in exploration, development, and production activities to reverse years of underinvestment.

Policy and Regulatory Reforms Key

Nwakwue urged the government to continue implementing policies and regulations that improve the ease of doing business in the oil sector, alongside ensuring regulatory certainty. These steps would further incentivize investment and development.

Refinery Privatization: A Path Forward

Regarding refineries, Nwakwue advocated for privatization. He believes this strategy would attract more investors and improve the overall investment profile of the sector. He expressed skepticism about the government’s ability to effectively manage refineries, citing a perceived lack of success in running other ventures.

Nwakwue’s call for transparency, increased investment, and refinery privatization highlights key areas for the government to address. These actions could unlock the full potential of Nigeria’s oil reserves and ensure a more sustainable future for the nation’s oil sector.