Tinubu Hails Increase in Crude Production to 1.61 Million Barrels Per Day, Cites Reforms.
President Bola Ahmed Tinubu has lauded the recent boost in Nigeria’s crude oil production, which reached 1.61 million barrels per day (mbpd) in July 2024. The President attributed this significant increase to the reforms his administration implemented in May 2024 to address gaps in the Petroleum Industry Act (PIA).
In a national broadcast on Sunday, President Tinubu highlighted the resurgence of Nigeria’s oil and gas sector, which had been experiencing a decline. He noted that the production surge was a direct result of the strategic changes made to the regulatory framework governing the industry.
“Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act,” Tinubu stated. “Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed, totaling over half a billion dollars since then.”
President Tinubu also underscored the importance of Nigeria’s natural gas resources, which he said had been underutilized for too long. To address this, his administration launched the Compressed Natural Gas (CNG) Initiative, aimed at transitioning the country’s transportation sector from petrol and diesel to CNG. This move, according to Tinubu, will significantly reduce the country’s reliance on expensive fuel imports.
“We were using our hard-earned foreign exchange to pay for and subsidize the use of petrol, neglecting our gas resources. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down,” he said.
The President revealed that the CNG initiative is expected to save over two trillion Naira each month by reducing the need for petrol and diesel imports. These savings, he said, would be redirected towards investments in critical sectors such as healthcare and education.
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As part of the initiative, the government has begun distributing conversion kits to commercial vehicles at little or no cost. Tinubu expressed optimism that this transition would reduce transportation costs by approximately 60%, helping to curb the country’s rising inflation.
Tinubu’s remarks come as Nigeria’s energy sector begins to see renewed interest from international investors, thanks to the government’s proactive measures. The President emphasized that these efforts are key to ensuring the long-term sustainability and growth of Nigeria’s economy.
