Nigeria Must Boost Oil Production to Unleash Economic Potential

Nigeria must significantly increase its oil production to fully optimise its crude reserves and maximise economic benefits, according to Damilare Asimiyu, Head of Research at FSDH Group. Speaking with ARISE News, Asimiyu highlighted that Nigeria is poor in oil production per capita and needs to produce more than three million to four million barrels per day.

The current average oil production stands at about 1.72 million barrels per day, which represents an improvement but remains below the government's budget benchmark of 1.86 million barrels per day. Asimiyu stressed that increasing oil production would have wider economic benefits due to its significant contribution to exports and government revenue.

Oil and gas contribute approximately 85% of Nigeria's exports, while proceeds from this sector account for more than 65%. A stronger performance in the oil and gas sector would also support government finances and the banking sector, with a positive impact on banks' books and enabling the government to secure budget funds.