Head of Research, FSDH Group, Damilare Asimiyu, says Nigeria must significantly increase oil production to fully optimise its crude reserves and maximise the sector’s economic benefits.
Speaking during an interview with ARISE News on Tuesday, Asimiyu said Nigeria must significantly increase its oil production to fully optimise its crude reserves and production capacity.
“Nigeria is poor in oil production per capita. Until we produce more than three million to four million barrels per day, we are not fully optimising our capacity as a nation.”
He said Nigeria’s average oil production of about 1.72 million barrels per day had improved but remained below the government’s 1.86 million barrel per day budget benchmark.
“Nigeria’s average oil production of about 1.72 million barrels per day represents an improvement but remains below the government’s budget benchmark of 1.86 million barrels per day.”
Asimiyu added that increasing oil production would have wider economic benefits, given the sector’s contribution to exports and government revenue.
“Oil and gas contribute about 85% of our exports, while proceeds from oil and gas account for more than 65%.”
He said stronger performance in the oil and gas sector would also support government finances and the banking sector.
“The prosperity of the oil and gas sector hits the banks, it helps their books. At the same time, when they are prospering, the government is also able to get money for the budget.”
Goodness Anunobi
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