Tinubu: Nigeria Has Reduced Dependence on Crude Oil Revenue

President Bola Tinubu has said Nigeria has significantly reduced its dependence on crude oil revenue, while pledging to further diversify the economy and make gas a major focus of the country’s energy plans.

 

Tinubu, represented by Vice President Kashim Shettima, spoke on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC.

 

The President said his administration was pursuing a diversified, high-growth economy in which agriculture, manufacturing, digital and creative industries would play greater roles.

 

“We have already reduced our dependence on oil revenue, and we intend to go further,” Tinubu said.

 

He described gas as central to Nigeria’s energy transition, noting that the country has the largest gas reserves in Africa.

 

“With the largest gas reserves in Africa, we will expand gas supply for power, industry and clean cooking, reduce flaring and methane emissions, and grow renewable energy alongside it,” he said.

 

Tinubu said the government would pursue an energy transition suited to Nigeria’s needs while meeting its climate responsibilities without compromising development and energy access.

 

He also said a well-managed upstream petroleum sector could create jobs for Nigerian engineers, fabricators and service companies, stressing that petroleum resources should be used to build the wider economy rather than sustain dependence on oil.

 

According to him, improved security and collaboration among security agencies, operators, host communities and the NUPRC had helped stabilise oil production and attract investors back to the country.

 

The President credited the Petroleum Industry Act with laying the foundation for reforms in the sector, but said investors had also raised concerns over high costs, lengthy contracting processes and uncertainty around fiscal terms.

 

“Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain. We listened, and we acted,” he said.

 

Tinubu charged the NUPRC to maintain transparency, ensure regulatory certainty and remain firm, fair and independent in its decisions.

 

He also warned operators benefiting from government incentives to meet their obligations on work programmes, local content, environmental protection and host communities.

 

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said Nigeria, with crude oil production of about 1.7 million barrels per day and more than 37 billion barrels in reserves, still required increased investment, additional licensing rounds and intensified exploration.

 

Meanwhile, NUPRC Governing Board Chairman, Magnus Abe, commended the Commission for what he described as progress in reforming the upstream sector under the Petroleum Industry Act.

 

The event also featured awards to former Directors of the Department of Petroleum Resources, which was transformed into the NUPRC, in recognition of their contributions to reforms in the upstream petroleum sector.