Nigeria Reduces Oil Reliance Amid Economic Diversification Push
President Bola Tinubu has asserted that Nigeria has made significant strides in reducing its dependence on oil revenue, as part of a broader strategy to diversify the economy. Speaking at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, Tinubu emphasized that while the government remains committed to developing the petroleum industry, its primary focus is on leveraging oil resources to support other economic sectors rather than relying solely on crude oil for growth.
The President highlighted agriculture, manufacturing, digital, and creative industries as key areas for diversification. Despite these efforts, oil continues to play a crucial role in Nigeria's finances, contributing significantly to public revenue and foreign exchange. However, the sector has faced challenges, including fluctuations in production and prices, as well as security and operational issues.
In February, Tinubu issued an executive order directing oil and gas revenues to be paid directly into the Federation Account, eliminating certain deductions previously retained by NNPC Limited. The administration has also implemented reforms aimed at boosting oil production, improving revenue remittances, and attracting investment. According to the Minister of State for Petroleum Resources, Nigeria currently produces about 1.7 million barrels of crude oil per day and has over 37 billion barrels of oil reserves.
The NUPRC has reported increased investment activity in the upstream sector, with over $57 billion approved in Field Development Plans since 2024. President Tinubu declared the period ahead as a 'decade of gas,' emphasizing the expansion of gas supply for power, industry, and clean cooking, while also reducing flaring and methane emissions. He urged the NUPRC to maintain clear regulatory processes and ensure accountability in its decisions.