The Oil and Gas sector is one of the most important sectors of the Nigerian economy. The sector is responsible for most of the country’s revenue.
But despite its enormous importance, it has been underperforming lately, plagued by allegations of corruption, non-remittance of petrodollars, and oil theft, among others.Â
The growing costs of subsidy payments have also contributed to the debates on the reforms that should be done to the sector. Â
With barely three days to the 2023 presidential election, candidates of all political parties have at different times during their electioneering campaigns stated their plans and visions for the country’s oil and gas sector.
We shall now examine on what the three leading presidential candidates of the APC, PDP, and Labour Party plan to do for the sector if elected.
Bola Tinubu: The former governor of Lagos State, with oil and gas experience in his private sector days, is the flag bearer of the All Progressives Congress (APC). The party is the current party of the incumbent president.
Tinubu, alongside his running mate Kashim Shettima, released a manifesto which, among other things, detailed their plans for the oil and gas sector. Â
He plans to increase Nigeria’s oil production capacity. The country 2022 lost its place as Africa’s biggest producer of oil following a drop in production to around 1.07mbpd. He plans to increase production to 2.6mbpd by 2027 and 4mbpd by 2030, through increased domestic crude oil production and stoppage of pipeline vandalism.
He also plans to develop technology to monitor vessels by giving real-time updates, surveillance, and tracking of vessels. To also increase production, he plans to focus more on frontier oil and gas exploration, especially in the untapped areas of the country.Â
Tinubu also plans to address one of the key issues in the oil and gas sector by increasing indigenous participation and Host Development Community. In a similar vein, he wants to increase the indigenous share of crude oil production to 1mbpd.
He intends to do this by providing incentives for indigenous participation and also making it mandatory for oil companies to attend to the issues and provide assistance to host communities, especially in areas of environmental protection, prevention, and rejuvenation.Â
Also, he plans to harness domestic gas production by achieving full deregulation of mid-stream gas prices within 6 months. Also, he plans to accelerate the implementation of the Nigeria Gas Master Plan and fully develop and modernize the regulatory framework for natural gas production. Also, he plans to ensure refineries are fully functional to meet domestic consumption needs.Â
Most importantly, he plans to stop oil theft in the sector through the creation of security outfits. He also plans to accelerate the full implementation of the PIA and implement additional favorable policies to attract investment in deep water assets within 6 months.
Additionally, he plans to remove fuel subsidies. He also adds that the social contract between the government will be maintained, while funds from subsidy removal will be used to fund targeted infrastructural, agricultural, and social welfare programs.Â
Peter Obi: The former Anambra State governor, alongside his running mate Yussuf Datti Baba-Ahmed, unveiled a 72-page manifesto titled Our Pact With Nigerians, one which includes plans for the oil and gas sector.Â
Peter Obi acknowledged and noted the importance of the oil and gas sector to the Nigerian economy. However, he revealed that it’s high time the country diversified from oil.
He plans to ensure the country moves from its dependence on oil to the fourth industrial revolution “by expanding physical infrastructure through market-driven reforms that will unleash growth enabling entrepreneurship and market-creating innovations.” Â
He also plans to revive the local refineries. Despite having four refineries, Nigeria has failed to refine oil but instead imports refined petroleum, which is part of the country’s rising subsidy bill. He also plans to welcome the private sector, and work with modular refineries.
Obi said he will put an end to fuel subsidies from his first day in office. Peter Obi described fuel subsidy as an “organized crime” noting that 50 percent of it is based on corruption, while he highlighted that subsidy payment is higher than education, health, and capital projects. He notes that the funds from subsidy removal will be used on critical areas like health, and education, amongst others.Â
He also vows to ensure that oil theft is stopped in the country by all means. He alleged that the people in government are the ones responsible for the rampant oil theft in the country.Â
Atiku Abubakar: The former vice-president between 1999-2007 alongside his running mate Ifeanyi Okowa unveiled their policy document titled “My Covenant with Nigerians.”Â
Atiku plans to end fuel subsidies in his first 100 days in office, nothing that the amount paid for fuel subsidy is inimical to Nigeria’s economic growth and development. He also noted that when the subsidy is removed, there will be a comprehensive plan on how the funds will be spent. Atiku also plans to impound all oil blocs allocated to some Nigerians that are not functional.Â
He also revealed that the refineries in Nigeria are more like money gulpers, as billions are expended on them annually and yet do not refine fuel. He notes that he will privatize the refineries to ensure that they are functional, and through this, the country will have a functional refinery, while also saving costs on maintaining the refineries which can be channeled to other means.Â
Atiku also intends to “expand crude oil and natural gas production by increasing reserves in the long-term and boosting the ‘producibility’ of existing conventional fields in the short and medium term. By 2030, Nigeria shall produce a minimum of 5 million barrels per day, subject to OPEC production quota.” Also, make use of modular refineries to ensure that refined petroleum is easily available and accessible to Nigerians locally.Â
The leading presidential candidates all have varying plans for the sector. One thing to note is the candidate’s ‘unanimous’ plan to remove fuel subsidies and use the funds for developmental projects in the country.Â
