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FG loses revenue to low crude production

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By Abiodun Okunloye

Nigeria's oil production has not reached its potential, impacting the economy.

The Petroleum Technology Association of Nigeria has reported a significant daily Revenue loss due to its struggles to increase crude oil production. During a recent visit to PETAN in Lagos, the Chairman, Wole Ogunsanya, expressed this view when the Association of Energy Correspondents of Nigeria, led by Chairman Ugo Amadi, paid a visit to PETAN as an indication of respect. He emphasised the organisation’s commitment to supporting President Bola Tinubu’s initiatives to improve Nigeria’s oil and gas production and achieve more value.

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According to him, PETAN’s goal is to assist the government in protecting the retention of all oil industry assets within Nigeria. Ogunsanya suggests that Nigeria’s potential to become one of the top 20 economies globally lies in maintaining control over 60 to 70 percent of the country’s oil and gas value chain. He was worried about the negative impact on the country’s Economy if Nigeria’s oil production did not reach its full potential. He stated that the nation failed to produce a minimum of 500,000 barrels daily, resulting in significant losses for the country.

PETAN will support the government in increasing oil and gas production.

Also, the leader of PETAN stated that retaining values within the country and maximising benefits across all industry sectors are essential for preventing such losses. By having Nigerian companies extract oil, transport it to Nigerian-owned refineries for processing, refining petrochemicals, and running power plants that utilise the gas produced, along with establishing pipelines to connect these power plants, the country can rank among the top 20 economies globally. Their belief is unwavering that there is no other remedy for Nigeria’s economic challenges.

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He emphasised their dedication to upholding central values while recognising the Presidency’s strong focus on improving production. He expressed that the Presidency had released directives and created numerous gazettes, declaring that PETAN was following those actions. Ogunsanya emphasised his commitment to supporting the government and nation in increasing oil and gas production. During a recent presentation to association members, he outlined a clear vision for supporting Nigeria through creative strategies to enhance oil and gas production.

Nigeria can increase production by utilising a technological approach.

Furthermore, he recognised the Nigerian industry’s challenges, such as financial constraints and transportation issues. He stated that his organisation needed to collaborate with energy correspondents to advance specific plans. In his speech, their help is essential. With their involvement, the message will connect and be communicated effectively. For them to succeed, they need to share their stories and promote their visions to assist in their current circumstances. They will reciprocate this support, just as they have done. He assured the Nigeria Atomic Energy Commission (NAEC) representatives that they would immediately collaborate with PETAN.

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Strategies to improve oil production include investing in advanced technologies and Infrastructure to optimise extraction processes to increase Nigeria’s production. Enhancing the regulatory framework to promote transparency and efficiency, attracting investment, and promoting partnerships can stimulate growth. Developing crucial infrastructure, such as pipelines and storage facilities, to facilitate oil transportation and improving Security measures to protect installations are also vital. Nigeria can boost its production and maximise economic potential by implementing a multifaceted approach that combines technological innovation, regulatory reforms, Investment promotion, and infrastructure development.

Related Article: Over 80% of Nigeria’s crude oil gets stolen

Increasing Nigeria’s crude oil production would boost the country’s revenue and economic growth, as oil exports are a major source of income for Nigeria. This increased revenue could be invested in infrastructure development, social Welfare programs, and various sectors to drive economic development. Higher production levels would enhance Nigeria’s global presence and influence in the oil market, potentially attracting more investment and partnerships, creating job opportunities, stimulating local industries, and improving the livelihoods of the Nigerian population.

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