By Augustine Ehikioya
President Bola Ahmed Tinubu has said Nigeria has significantly reduced its dependence on oil revenue as his administration seeks to diversify the economy and expand the contribution of agriculture, manufacturing, and the digital and creative sectors.
Tinubu made the disclosure on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). He was represented at the event by Vice President Kashim Shettima.
The President said improved collaboration among security agencies, oil operators, host communities and the NUPRC had helped stabilise and strengthen crude oil production.
He also said investors who previously left Nigeria in search of more favourable opportunities were returning, adding that the country had ranked first among Africa’s leading destinations for upstream investment for two consecutive years.
“These gains matter well beyond the oil and gas industry. Under the Renewed Hope Agenda, we are building a diversified economy in which agriculture, manufacturing, the digital and creative industries all play their part,” Tinubu said.
“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.”
Tinubu said gas could support power generation, industrial activities and domestic energy needs, while petroleum earnings would continue to contribute to foreign exchange and government revenue.
He added that a well-managed upstream petroleum sector could create jobs for Nigerian engineers, fabricators and service companies, stressing that his administration intended to use petroleum resources to support broader economic development rather than rely solely on them.
On energy transition, the President said his administration would pursue a policy suited to Nigeria’s development and energy needs.
“This is the decade of Gas,” he said, noting that Nigeria’s large gas reserves would be used to expand gas supply for electricity, industry and clean cooking, while reducing gas flaring and methane emissions.
He added that the government would also expand renewable energy as Nigeria seeks to meet its climate commitments without compromising economic development and access to energy.
Tinubu further said his administration would continue working to make Nigeria an attractive destination for hydrocarbon investment, while insisting on greater compliance and accountability within the industry.
He said operators benefiting from government incentives must meet their commitments on work programmes, local content, environmental standards and host communities.
The President also called on the NUPRC to remain accountable for its performance, while pledging that the government would uphold the rule of law and sanctity of contracts to reduce disputes and ensure their speedy resolution when they arise.
Tinubu described the Petroleum Industry Act (PIA) as a strong foundation for reforms in the petroleum sector but noted that legislation alone could not guarantee investment.
According to him, investors had raised concerns about high costs, lengthy contracting processes and uncertainty surrounding fiscal terms for complex projects.
“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.
He described the NUPRC as the bridge between government policy and investment on the ground and urged the Commission to maintain clear processes, reliable timelines and effective coordination with other government agencies.
Also speaking, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the NUPRC had recorded significant achievements in its five years of operation.
Lokpobiri attributed the progress to the leadership and reform agenda of the Tinubu administration.
He said Nigeria, with crude oil production of about 1.7 million barrels per day and more than 37 billion barrels of oil reserves, still required increased investment, additional licensing rounds and intensified exploration to fully develop its petroleum resources.
