As the Federal Government reinforces plans to boost the country’s oil production during the year, stakeholders in the sector have renewed calls for improved security measures in the Niger Delta as well as strategic investment by interest groups.
The concerns stem generally from the dwindling production over time as Nigeria has been unable to sustain the quota allocated to it by the Organisation of Petroleum Exporting Countries (OPEC).
Speaking on the development, the Managing Director, Timproxy Limited, Mr. Timothy Nunu, called on the Federal Government, security agencies, and other key stakeholders, to enhance security in the Niger Delta as a fundamental strategy for boosting production.
In an interview with New Telegraph, over the weekend, Nunu emphasised that a peaceful and secure environment was crucial to ensuring uninterrupted oil exploration and production activities.
He noted that Nigeria’s aspirations for increased crude oil output could only be realised if critical strategies are adopted.
Recall the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had during the launch of the second phase of Operation Delta Sanity II (OPDS II) by the Nigerian Navy in Port Harcourt, reaffirmed Federal Government’s target of achieving three million barrels per day (bpd) in crude oil production by 2025.
However, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in his recent Senate Committee appearance, set a less target of at least 2.1 mbpd by 2025.
According to the Monthly Oil Market Report (MOMR) released by the Organisation of Petroleum Exporting Countries (OPEC) in December 2024, Nigeria’s crude oil production fell by 1,000 bpd in December, dropping to 1.485 million bpd from 1.486 million bpd in November.
Production levels fluctuated throughout 2024, reaching as low as 1.23 million bpd in March and peaking at 1.42 million bpd in January. Nunu highlighted that increasing crude oil production required a multifaceted approach that goes beyond security enhancement.
He advocated greater collaboration between the government, oil companies, and the private sector to drive investment in exploration, infrastructure, and local content development.
He said: “The oil and gas industry in Nigeria is gradually recovering. The past few years have been challenging, but with the present government’s initiatives, such as the Executive Order shortening contracting bid timelines, we are seeing improvements.
However, to achieve production targets of 2.1mbpd or even 3 mbpd, security remains a major concern. Resolving this issue, which the government is actively addressing, will be a significant step forward.”
He further stressed that beyond security, capacity building and local content optimisation were essential. “There are many Nigerian companies that have won marginal field rounds but are yet to commence production.
Forming strategic partnerships with experienced foreign companies will be instrumental in bridging the technical expertise gap. Those with absorptive capacity must leverage knowledge transfer from these partnerships to ramp up production,” he added.
To accelerate crude oil output, Nunu outlined several strategic measures which must be implemented. He said: “Security and asset protection can be strengthened by deploying advanced surveillance technologies, such as drones and satellite monitoring, to combat crude oil theft and pipeline vandalism.
Investment in exploration and development should focus on opening marginal fields, incentivizing deepwater exploration, and improving seismic data acquisition to attract investors. Infrastructure expansion requires upgrading refineries, maintaining pipeline networks, and developing gas infrastructure to support oil production.
“Fiscal and regulatory reforms should ensure the full implementation of the Petroleum Industry Act (PIA) and streamline licensing processes to reduce bureaucratic delays.
Local content optimization can be achieved by strengthening the Nigerian Content Development and Monitoring Board (NCDMB) to enhance indigenous capacity in oilfield services and manufacturing.
Strategic alliances and joint ventures between local firms and international oil companies (IOCs) should be encouraged to facilitate knowledge transfer and improve operational efficiency.
