The minister of state petroleum resources (gas), Mr Ekperikpe Ekpo said the deregulation of the downstream sector of the oil industry has created avenues for investments that would yield $55.2 billion by 2030.
The minister stated this in his an address at the 41st Annual Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) held yesterday in Lagos under the theme: ‘Repositioning the oil and gas industry for future energy dynamics.’
He said the investments in the sector have opened windows of opportunities for innovation and self-sufficiency in petroleum products refining.
In line with the vision of the federal government, Ekpo assured that Nigeria is on a steadfast march to grow oil production to 2.1 million barrels per day, with a significant increase in associated gas by December 2024.
“This ambitious goal is underpinned by the expansion of midstream and downstream oil and gas infrastructure and the construction of energy systems that are not only resilient, but also affordable to the Nigerian populace.
“The recent consultations with various stakeholders and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have been enlightening and productive.
“They have projected an estimated $13.5 billion investment requirement in the upstream oil and gas space over the next 12 months to drive this upstream space strategically to meet our aspired objectives for the upstream space. This is a testament to the confidence in our market and the expected return on investment.
“Through such investments by 2030, we anticipate the realisation of $55.2 billion from operators within Nigeria, marking a significant economic boost for our nation,” he said.
He said President Bola Tinubu “fully understands the indispensable role of energy in the macro and micro facets of our economy and, as such, has mandated continuous engagement with stakeholders and the creation of policies and programmes to support our collective objective.”
The minister further said the energy landscape globally and in Nigeria is undergoing significant transformation and that reforms such as the Petroleum Industry Act of 2021, Electricity Act of 2023 and the courageous step taken by the Tinubu administration to uphold the deregulation of the downstream sector, signal a firm commitment to overhauling the Nigerian energy sector.
“The deregulation of the downstream sector of the oil industry, in line with the provision of the PIA 2021, has undoubtedly presented challenges, yet it has also opened up opportunities for innovation and self-sufficiency.
“Members of NAPE, who are at the forefront of hydrocarbon extraction, play a crucial role in reducing our dependence on imported refined petroleum products and providing the necessary feedstock for modular refineries to meet domestic needs,” Ekpo added.
