Some financial experts have urged the Federal Government to invest more in increased crude oil production and end oil theft as panaceas to achieve the 2.5 million barrel target.
The experts said this in separate interviews with the News Agency of Nigeria (NAN) on Monday in Lagos.
They said this against the backdrop that the Nigerian government has announced a new crude oil production target of 2.5 million barrels per day, with the aim of growing the foreign exchange reserve.
Prof. Bright Eregha, Lecturer of Economics at Pan Atlantic University, said the Federal Government’s 2.5 million-dollar oil projection was possible.
“The Federal Government should put more effort into tackling the headwinds associated with crude oil theft in the Niger-Delta region.
“This will lead to increased crude oil output over time and improve our foreign exchange liquidity, Eregha stated.
He noted that the Federal Government should continue to have robust dialogues with community leaders so as to curb youth unrest in most oil-bearing communities.
He added that the government must put in measures to stop oil pipeline vandalism in the region in order to curb false measures that have been declared.
“The regulators should consider harnessing modern technology to monitor oil pipelines in host communities so as to attain the 2.5 million barrel target on a daily basis,’’ he said.
Also speaking, Mr. Adebayo Adesino, former president of the Chartered Institute of Taxation of Nigeria (CITAN), said more governmental investment in crude oil production would boost the country’s oil output.
“The regulator should consider harnessing joint ventures with major oil multinationals in the sector to scale up its crude oil output.
“Particularly in deep waters, where special equipment is key in prospecting for more oil, Adesino said.
He noted that the government could achieve the 2.5 million-dollar oil barrel by continuing to incentivize host communities with jobs.
“This can discourage any form of youth unrest because they are benefiting from the value chain. Particularly in ultra-deep areas, where special equipment is needed for such expertise,’’Adesino said.
He noted that the federal government should adopt the incremental model so as to attain the projected increase in oil production.
“This approach explains that issues are raised gradually, Adesino said.
According to the latest data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s oil output rose by 91,476 barrels per day to hit 1,426,574 barrels daily in January 2024.
This is compared to the production figure of 1,335,098 barrels per day in December 2023.
NAN reports that figures from NUPRC showed that with the addition of condensate, Nigeria’s oil production rose to 1.64 million barrels per day in January 2024.
This was up from the 1.55 million barrels per day recorded in December 2023. (NAN)
