Minister of State for Petroleum Resources, Timipre Sylva has attributed the inability of Nigeria to meet the Organisation of the Petroleum Exporting Countries, OPEC, crude oil production quota to lack of investments in the oil and gas sector of the economy.
Nigeria’s OPEC quota is pegged at 1.8 million bpd but the country has struggled to produce between 1.3 and 1.4 million bpd in the last few years.
Speaking at a Ministerial Plenary at the ongoing Ceraweek in Houston, Texas, Sylva said the speed with which international oil companies and other investors are withdrawing investments in hydrocarbon exploitation has contributed significantly to Nigeria’s inability to meet OPEC’s target.
He also cited security challenges as another major factor that contributed to the lack of significant growth of the sector in the country adding that the drive towards renewable energy by climate enthusiasts has discouraged funding for the sector.
Also read: OPEC, allies meet on possible oil production increase
Sylva however called for a change of attitude stressing that in decades to come, hydrocarbon will continue to play a central role in meeting the energy needs of the world.
The minister who is an advocate of gas as a transition fuel for Africa said although Nigeria was in full support of the energy transition, the country and continent at large should be allowed to develop at its own pace to be able to meet the energy needs of the over 600 million people who have no access to any form of power.
Editor: Anoyoyo Ogiagboviogie
