Nigeria needs $25bn annually to achieve 4 million barrels per day oil output — Avuru

Executive Chairman of AA Holdings, Austin Avuru, has stated that Nigeria will need about $25 billion of annual investment in the next ten years if it is committed to achieving crude oil output of four million barrels per day and 3 billion cubic feet per day of domestic gas production.

Avuru made this known during a panel session at the just concluded Annual International Strategic Conference of Association of Energy Correspondents of Nigeria (NAEC) held in Lagos.

Speaking on the conference theme, “Nigeria’s Energy Transition: Enhancing Investment Opportunities & Addressing Challenges in the Energy Sector,” Avuru said Nigeria should focus more on energy security and optimising the value of its oil and gas resources before committing to its energy transition agenda.

He explained that the energy transition agenda is a lot more serious than an issue that has to do with carbon emissions in the country.

In his words, “Carbon emissions reduction has been the key factor that all the energy transition argument has been hinged on.

“Most countries have focused on addressing energy security and optimising the available resources while driving the transition. Every country will address these two things before coming to what some people think is the residual matter of reduction of carbon emission.”

He emphasised that Nigeria should prioritise energy security for both now and in the future and optimise the value of the numerous energy resources that it has today, while still pushing the energy transition agenda.

Avuru maintained that if the government must prioritise the energy transition agenda, it should have raised the country’s crude oil production to about 3 to 4 million barrels per day presently, then reduce production to 1 million barrels per day by 2040.

He added that the country should have achieved domestic gas production of 4 billion cubic feet per day between now and 2030.