Tony Elumelu calls for stronger partnerships to revitalize Nigeria’s oil and gas sector

Oluwatosin Racheal Alabi -
Key Points
  • Tony Elumelu urges partnerships between IOCs and Nigerian firms to boost oil and gas growth.
  • He calls for infrastructure upgrades and improved security to reverse declining oil production.
  • Elumelu highlights gas as a key to diversifying Nigeria’s energy and supporting industry growth.

Collaborative efforts to transform Nigeria's oil industry

During the 3rd anniversary celebration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, Tony Elumelu, Chairman of Heirs Holdings and United Bank for Africa (UBA), urged international oil companies (IOCs) to form stronger partnerships with indigenous firms to tackle Nigeria’s pressing energy needs. Using Heirs Energies as an example of a local firm adhering to global standards, Elumelu emphasized that combining local expertise with international best practices could help reshape Nigeria’s oil industry.

“The private sector has the power to transform the continent through long-term investments, but it must work collaboratively with the public sector,” Elumelu said, highlighting the importance of partnerships in navigating the global energy transition.

Addressing declining oil production and investment challenges

Elumelu pointed to Nigeria’s declining oil production, which has dropped from over 2 million barrels per day to below 1.5 million, as an urgent issue that threatens the country’s revenue, market share, and overall economic development. He identified aging infrastructure, security challenges in the Niger Delta, regulatory uncertainties, and the global shift towards renewable energy as major obstacles facing the sector.

Elumelu praised the NUPRC’s “Project 1 Million Barrels of Oil Per Day” initiative, expressing confidence in its potential to boost Nigeria’s oil output by an additional million barrels daily. However, he stressed that achieving this goal would require a holistic approach, including infrastructure modernization, improved security, and the adoption of innovative technologies.

“Setting a clear and challenging goal is critical,” Elumelu said, “but it requires collaboration, innovation, and excellence across the value chain to succeed.”

Promoting gas utilization for energy security and growth

Elumelu also commended the NUPRC’s Nigerian Gas Flare Commercialisation Programme, designed to strike a balance between environmental protection and economic development. He emphasized the growing importance of gas as a cleaner, more sustainable energy source and its potential to diversify Nigeria’s energy mix. Elumelu noted that Heirs Energies is ramping up its gas production capacity to meet domestic energy needs, support power generation, and fuel gas-based industries.

Sharing Heirs Energies' success story, Elumelu revealed that the company doubled production from its OML-17 asset within 100 days of assuming operational control in 2021. Despite setbacks from crude theft, collaboration with NNPC Limited has led to significant improvements in terminal receipts, reaching 85% by 2024. “These achievements highlight the impact of strong industry collaboration and the potential of public-private partnerships in revitalizing Nigeria’s oil and gas sector,” he said.

A vision for locally led transformation

Elumelu’s message underscores the importance of partnerships, gas utilization, and investment in local capacity to drive a sustainable, long-term transformation of Nigeria’s oil and gas industry. His vision centers on a locally led approach that strengthens the sector while contributing to the country’s economic growth and energy security.