Tony Elumelu Urges Nigeria to Boost Oil Production for Economic Growth

Renowned entrepreneur and energy investor Tony Elumelu has called for a significant increase in Nigeria’s oil production, emphasizing its crucial role in driving economic diversification and industrial growth.

Speaking at the 2025 Heirs Energies Petroleum Industry Leadership Forum in Abuja, Elumelu, the founder of Heirs Energies, stressed the need for major investments in the oil and gas sector to ensure energy security and sustain the nation’s industries.

“We cannot industrialize Africa, particularly Nigeria, without improving access to energy and electricity,” Elumelu stated.

Heirs Energies, a key player in Nigeria’s oil industry, acquired OML 17 from Shell about four years ago. Today, the company produces over 53,000 barrels of oil per day, cementing its position as a leading indigenous oil and gas producer.

Elumelu, who also chairs Heirs Holdings, reflected on the decline in Nigeria’s oil output under former President Muhammadu Buhari when production fell below 1 million barrels per day (bpd). However, he acknowledged recent improvements under President Bola Tinubu, with daily production now reaching 1.8 million barrels.

“We are happy with the progress, but 1.8 million barrels per day is not enough,” he said. “We need to push beyond 2 million barrels. Oil revenue remains vital in funding Nigeria’s diversification efforts and broader economic development.”

Despite the progress in oil production, Elumelu pointed out the persistent challenges in Nigeria’s power sector, particularly in securing adequate gas supply.

“Transcorp is Nigeria’s leading power-generating company with a 2,000-megawatt installed capacity, but gas constraints limit our output,” he explained.

To address this, Heirs Energies aims to increase gas production alongside oil expansion, ensuring industries and power companies like Transcorp have the resources to operate efficiently.

Elumelu unveiled Heirs Energies’ ambitious plan to nearly double its oil output, aiming for 100,000 barrels per day in the coming years.

“Fifty-three thousand barrels is not enough. We want to scale up to 100,000 barrels. That’s why we are here—strategizing with industry leaders on how to achieve this goal,” he stated.

He expressed optimism that with the right policies and incentives from the Tinubu administration, Nigeria’s oil and gas sector could experience significant expansion.

Elumelu’s call for increased production comes amid positive developments in Nigeria’s oil industry. On February 13, the Organization of the Petroleum Exporting Countries (OPEC) reported that Nigeria’s average daily crude oil production rose to 1.53 million bpd in January—marking the first time the country met its OPEC-set production target of 1.5 million bpd since its establishment in November 2023.