Optimizing Nigeria’s Economic Growth: Allocating Oil Wells to Kaduna, Dangote, BUA, and Other Refineries

In a bid to revitalize Nigeria’s economy, I strongly urge President Bola Tinubu to consider a strategic shift in the allocation of oil wells by directing them to established refineries such as Dangote, BUA, and other key players in the country. This approach aligns with President Tinubu’s anti-corruption stance and focuses on leveraging Nigeria’s comparative advantages in the economic landscape.

It is crucial to move away from the traditional practice of allocating oil wells to individual Nigerians and transition towards a model that supports refineries. I appeal to the federal government to allocate oil wells specifically to refineries like Dangote, fostering self-sufficiency and reducing dependency, ultimately contributing to the economic resurgence of Nigeria.

President Tinubu should extend this allocation to all modular refineries across the country, taking advantage of the conducive environment the government has created for such investments. The issuance of 35 modular refinery licenses in the past, if actualized, could bridge a supply gap of 53,000 bpd, positioning Nigeria as West Africa’s refining hub.

Despite challenges in the establishment of mini refineries, recent projects like the OPAC Refinery in Delta state and the Niger Delta Petroleum Resources Refinery expansion in Rivers state show promise. Allocating oil wells to these ventures is essential for their success and aligns with government policies supporting their development.

To expedite progress, President Tinubu must redirect oil wells from individuals to these new private refineries. This action will not only contribute to rebuilding the Nigerian economy but also lead to increased infrastructure development and industrial growth. Currently, some individuals hold oil wells, reaping billions daily, while the majority of Nigerians grapple with poverty.

Dangote, BUA, and other refineries may face challenges in crude oil production, necessitating the importation of approximately 1.322 million barrels per day. President Tinubu’s intervention is crucial to secure a steady supply of crude oil for these refineries, ensuring Nigeria’s self-sufficiency in petroleum product production.

Given Nigeria’s struggle to meet OPEC output quotas, with a significant shortfall and associated financial losses, President Tinubu’s intervention becomes even more pressing. The recent borrowing of $3 billion from Afreximbank by NNPCL underscores the urgency to provide local refineries with domestic crude oil, reducing dependence on imports.

In conclusion, President Tinubu’s proactive intervention to allocate oil wells to refineries will not only address the challenges faced by Dangote, BUA, and other key players but also steer Nigeria towards self-sufficiency in petroleum production, fostering economic growth and stability.

Inwalomhe Donald, Abuja [email protected]

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