Nigeria Requires $25bn Investment To Achieve 4m Barrels Daily Oil Production

A reconstructed energy transition agenda and annual investment of about $25 billion would help address Nigeria’s energy woes and support the country’s efforts to realise 4 million barrels daily oil production.

This is the calculation and view expressed by the executive chairman of AA Holdings, Austin Avuru, at the 2023 annual conference of the National Association of Energy Correspondents(NAEC), in Lagos.

Avuru stated that Nigeria will need about $25 billion of annual investment in the next ten years if it is committed to achieving crude oil output of 4 million barrels per day and 3 billion cubic feet per day of domestic gas production.

Speaking on the conference theme: ‘Nigeria’s Energy Transition: Enhancing Investment Opportunities & Addressing Challenges in the Energy Sector,’ Avuru said, Nigeria should focus more on energy security and optimising the value of its oil and gas resources before committing to its energy transition agenda.

He explained that the energy transition agenda is a lot more serious than an issue that has to do with carbon emissions in the country. To him, “Carbon emissions reduction has been the key factor that all the energy transition argument has been hinged on.

“Most countries have focused on addressing energy security and optimising the available resources while driving the transition. Every country will address these two things before coming to what some people think is the residual matter of reduction of carbon emission.”

He emphasised that Nigeria should prioritise energy security for both now and in the future and optimise the value of the numerous energy resources that it has today, while still pushing the energy transition agenda.

Avuru maintained that, if the government must prioritise the energy transition agenda, it should have raised the country’s crude oil production to about 3 to 4 million barrels per day presently, then reduce production to 1 million barrels per day by 2040. 

He added that the country should have achieved domestic gas production of 4 billion cubic feet per day between now and 2030.