President Bola Tinubu has said Nigeria is steadily reducing its dependence on crude oil revenue, while announcing plans to make gas a central pillar of the country’s energy strategy.
Tinubu spoke on Tuesday, October 6, in Abuja, at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission.
The President was represented at the event by Vice President Kashim Shettima, according to a statement signed by the Senior Special Assistant to the President on Media and Communications (Office of the Vice President), Stanley Nkwocha.
Nkwocha quoted Tinubu as saying, “We have already reduced our dependence on oil revenue, and we intend to go further.
“But a diversified economy still needs energy, foreign exchange and investment, and that is where this sector serves the nation.
“Our gas can power homes and factories. Petroleum earnings support a stable naira and help fund the Federation.”
The President said his administration’s Renewed Hope Agenda was focused on building a diversified and high-growth economy in which agriculture, manufacturing, digital and creative industries would contribute to national development.
According to him, the strategy was aimed at moving Nigeria away from excessive dependence on a single sector.
Tinubu also pledged to pursue what he described as “an energy transition that is just and suited to Nigeria’s needs,” declaring that the current decade would be the “decade of Gas.”
“With the largest gas reserves in Africa, we will expand gas supply for power, industry and clean cooking, reduce flaring and methane emissions, and grow renewable energy alongside it.
“Nigeria will meet its climate responsibilities without sacrificing the development and energy access our people deserve,” he said.
The President said a properly managed upstream petroleum industry could generate employment for Nigerian engineers, fabricators and service companies.
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He added that the government’s objective was to use the country’s petroleum resources to develop the broader economy rather than remain dependent on them.
Tinubu attributed recent improvements in oil production to the combined efforts of security agencies, operators, host communities and the NUPRC.
He also said investors who previously moved their capital away from Nigeria were beginning to return, claiming that the country had ranked first among Africa’s leading destinations for upstream investment for two consecutive years.
The President credited the Petroleum Industry Act with providing the foundation for the progress recorded in the sector but stressed that legislation alone could not guarantee investment.
He said investors ultimately determined whether the commercial environment was attractive enough for them to commit funds.
Describing his administration as a listening government, Tinubu said, “Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain. We listened, and we acted.”
He said the government would continue working to make Nigeria the preferred destination for hydrocarbon investment, while insisting that companies benefiting from incentives must meet their obligations.
“Operators who enjoy incentives must deliver on their commitments to work programmes, local content, the environment and host communities, and the Commission must also account publicly for its own performance,” he stated.
Adding that accountability would remain central to the sector, Tinubu said, “We will uphold the rule of law and the sanctity of contracts, so that disputes are fewer and, where they arise, are resolved quickly and fairly.”
The President described the NUPRC as “the bridge between government policy and investment on the ground” and charged the regulator “to keep its processes clear and its timelines reliable, to work closely with sister agencies so that investors are not caught between overlapping requirements, and to remain firm, fair and independent in its decisions.”
While acknowledging that five years was relatively short in the life of an institution, Tinubu commended the NUPRC for its performance and urged it to “approach the next five years with the same commitment, integrity, and sense of purpose.”