The Nigeria Economic Summit Group, NESG, says the federal government needs to scale up crude oil production to at least 2.2 million barrel a day to be able to fully implement the 2025 Budget.
The NESG made this known in Abuja the nation’s capital on Friday during the presentation of its strategic vision for 2025, saying the records from the Organisation of Petroleum Exporting Countries, OPEC showed that the nation’s oil production dropped to 1.4 million barrel per day in March this year.
The chief executive officer of the Group, Tayo Aduloju said the nation’s oil production target in the last few years hovered around 1.1 mbd and 2.8 mbd, saying its possible to achieve the government’s projected 2.2mbd this year considering its commitment so far.
He said the Tinubu’s administration’s commitment to achieve 2.8 million bpd has not been in doubt since it came to office in 2023, adding that once this is achieved, it won’t matter the fluctuations of the price of crude oil in the international market.
He said the federal government must ensure that stability returns to Rivers state to avert insecurity which he explained is capable of distorting the nation’s crude oil production plans, adding that despite the fact that other sectors such as mining and agriculture contribute to the nations’ Gross Domestic Product GDP, the oil sector is crucial to earning more foreign exchange for the country.
“The government has shown since it came into office that crude production moved from 1.1 million bpd to 2.2 million bpd, and even to 2.8 million bpd, “ Aduloju stated.
“This shows that the government can achieve 2.2 million bpd if our trajectory is an incremental movement in daily oil production. It means it’s possible.”
“Effective implementation of stabilisation reforms could accelerate Nigeria’s Gross Domestic Product (GDP) growth to 5.5 percent in 2025,” he said.
“Additionally, improved foreign exchange availability will sustain operations in the manufacturing sector, which depends on imported raw materials and intermediate inputs.
“In agriculture, addressing financing, storage, warehousing, and logistics challenges will bolster sectoral performance.
“The oil and gas sector will remain critical, not just for growth but also as a significant contributor to foreign exchange inflows, external balances resilience, and government revenue,” the NESG boss noted.
The magazine reports that the political crisis in the Niger Delta state has threatened the sustainability of the current crude oil production, as analysts urged the federal government to ensure that total peace is returned to the restive state.
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