By Abubakar Yunus
The Chairman of the United Bank for Africa, Tony Elumelu, has said Nigeria’s oil production losses have dropped significantly under President Bola Tinubu’s administration, falling from 97 per cent before 2023 to about two per cent in June.
Elumelu, who disclosed this while speaking during a meeting with President Tinubu over the weekend, said the development showed that significant changes had taken place in the oil and gas sector in the past two years.
“I see a lot happening. I tell Mr. President that in the oil and gas sector of this country, a lot has happened in the past two years,” Elumelu said.
He added, “I’m not a politician, so I’m not feeling like one, but a lot has happened.”
The UBA chairman, who is also an investor in the oil and gas sector, said his operations currently generate more than 58,000 barrels of oil daily.
“Some of you here know, I’m an investor in the oil and gas sector. We generate over 58,000 barrels of oil every day,” he said.
Elumelu recalled that before Tinubu assumed office in 2023, he had raised concerns over the scale of oil losses in the country.
“Mr. President, before you took over in 2023, people here know, I shouted on social media. I tweeted that we were producing and losing 97% of our oil production,” he said.
“97%, Mr. President. 58,000 barrels, 97%.”
He explained that oil operators conduct a monthly process known as fiscalisation to determine production and losses.
“Mr. President, every month we do what is called fiscalisation,” Elumelu said.
“Last month, for the month of June, and let’s say Nigeria will know this, we got 98%. So, 2% loss is significant.”
The businessman said the improvement might not immediately be noticed by Nigerians, but stressed that the changes would become clearer with time.
“People don’t know this, but it takes time for people to know what’s going on,” he said.
Elumelu also called for greater attention to the power sector, describing electricity as critical to unlocking Nigeria’s economic potential.
“So, whenever I have the opportunity, I say it as it is,” he said.
“Power is so critical.”
He said Nigeria’s large youthful population, combined with the country’s energy resources, could accelerate economic growth if properly harnessed.
“You know, Mr. President, with the energy we have in this country, youth energy, youth population, established, you are bringing the… this country will take off,” he said.
However, Elumelu raised concerns over the financial challenges facing some electricity generating companies, saying their indebtedness to banks could undermine the sector.
“Some generating companies are indebted to banks. Banks are threatening,” he said.
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