Concerns are rising over the lack of domestic crude oil supply to the Dangote Petroleum Refinery and other local refiners, prompting the Independent Petroleum Producers Group to urge President Bola Tinubu to declare a state of emergency on crude oil production in Nigeria. The IPPG, which represents indigenous upstream exploration companies, highlighted the challenges facing the sector and the potential impact on the 2024 budget.
At a recent oil and gas conference in Abuja, industry leaders emphasized the need for increased investments in the sector to boost oil output. They also underscored the importance of addressing the decline in Nigeria’s oil production, which has fallen from 1.4 million barrels per day in January to about 1.2 million barrels per day in April.
The IPPG chairman stressed the urgency of taking action to reverse the downward trend in oil production and outlined key priority areas for achieving sustainable growth in the industry. Meanwhile, the NNPC has declared a “war” on challenges affecting crude oil production and is working with partners to overcome obstacles.
Collaboration and strategic initiatives, such as replacing old pipelines and investing in gas infrastructure, are crucial for enhancing production capacity and meeting the country’s energy needs. The oil minister also urged industry players to ramp up production efforts to support Nigeria’s oil sector.