Some financial experts have urged the federal government to invest more in increased crude oil production and end oil theft as a panacea to achieve the 2.5 million barrels target.
In separate interviews on Monday, the experts discussed the federal government’s announcement of the new crude oil production target of 2.5 million barrels per day, which aims to grow the foreign exchange reserve.
Bright Eregha, economics lecturer at the Pan Atlantic University, said the federal government’s 2.5 million oil projection was possible.
“The federal government should put more effort into tackling the headwinds associated with crude oil theft in the Niger Delta region.
“This will increase crude oil output over time and improve our foreign exchange liquidity,” Mr Eregha stated.
He noted that the federal government should continue to engage in robust dialogues with community leaders to curb youth unrest in most oil-bearing communities.
“The regulators should consider harnessing modern technology to monitor oil pipelines in host communities to attain the 2.5 million barrels target daily,’’ he said.
Also speaking, Adebayo Adesino, the former president of the Chartered Institute of Taxation of Nigeria (CITAN), said more governmental investment in crude oil production would boost the country’s oil output.
He noted that the government could achieve the 2.5 million oil barrels by continuing to incentivise host communities with jobs.
“This can discourage any form of youth unrest because they benefit from the value chain, particularly in ultra-deep, where special equipment is needed for such expertise,” Mr Adesino said.
He noted that the federal government should adopt the incremental model to attain the projected increase in oil production.
“This approach explains that issues are done gradually in raising the stakes,” Mr Adesina said.
According to the latest data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s oil output rose by 91,476 barrels per day to hit 1,426,574 barrels daily in January 2024.
This is compared to the production figure of 1,335,098 barrels per day in December 2023.
(NAN)
