An economist, Dr Ayo Teriba has urged the new management of the Nigeria National Petroleum Corporation Limited (NNPCL) to divest its investment to renewable energy to achieve the projected target.
Teriba, the Chief Executive Officer of Economic Associates, said this in an interview with the News Agency of Nigeria (NAN) in Lagos on Friday.
He emphasised the need for NNPCL to shift its focus from fossil fuels towards renewable energy, noting that this transition was essential for meeting future energy demands.
“The world of energy is no longer just about crude oil. Even Saudi Arabia’s state oil company is transitioning to renewables because it is the energy of the future.
“Saudi Aramco has invested $5 billion in renewable energy to become a leader in this sector, just as it is in crude oil production,” Teriba said.
He noted that the investment targets set for NNPCL would be difficult to achieve, especially given the impact of trade tariffs.
“Since President Donald Trump announced the tariffs, the prices of international commodities, including crude oil, have been on the decline,” he explained.
“Crude oil prices have dropped below $60 per barrel, so how can the government expect the team to meet such a target in a sector prone to uncertainty due to these tariffs?” he asked rhetorically.
Dr Ayodele Oni, Partner at Bloomfield Law Practice, corroborated Teriba’s view that the government’s target was ambitious but achievable.
He, however, suggested that the government should enhance security measures in oil fields and pipelines to prevent vandalism, which would help boost oil production and meet the target.
“The government should also maintain a consistent regulatory framework that encourages more private capital investment in the oil and gas sector,” Oni added.
“Addressing bureaucratic bottlenecks, particularly for investors interested in domestic refining, is crucial for enhancing productivity.”
Oni further stressed the importance of good governance and transparency in the oil industry to ensure that funds were adequately allocated for development.
NAN recalls that President Bola Ahmed Tinubu recently reconstituted the 11-man Board of NNPCL.
The board is headed by Bashir Bayo Ojulari as its Group Chief Executive Officer, and Ahmadu Musa Kida as non-executive chairman.
A statement issued by the presidential spokesman, Mr Bayo Onanuga, outlined an immediate action plan for the new board.
This includes conducting a strategic portfolio review of NNPCL-operated and joint venture assets to align with value maximisation objectives.
NNPCL in 2024, reported $17 billion in new investments within the sector.
The administration aims to increase the investments to $30 billion in 2027 and $60 billion by 2030.(NAN)
