Maximising Crude Oil Production: The Short-Term Solution for Nigeria’s Economic Challenges

President Bola Tinubu faces a straightforward yet significant challenge: insufficient funds to address the extensive needs of Nigeria’s 200 million citizens. The resolution, however, is clear and achievable.

To address this financial shortfall, President Tinubu should take a page from President Olusegun Obasanjo’s approach to economic management. Obasanjo effectively tackled similar issues by first addressing corruption and curbing waste, under the vigilant oversight of Nuhu Ribadu, whose reputation was a powerful deterrent against malfeasance.

More crucially, Obasanjo understood the importance of public sector borrowing requirements and the strategic role of revenue generation. Central to his strategy was the maximisation of crude oil production. Under his leadership, Nigeria achieved peak production levels, and the revenue from these sales was used to bolster the Naira against the dollar, reducing reliance on external borrowing and enabling the government to meet national needs more effectively.

President Tinubu should emulate this successful model by focusing on the following actions:

1. Maximise Crude Oil Production: Increase output to at least 2.4 million barrels per day to generate substantial revenue.
2. Reduce Dependence on External Debt: Utilise crude oil revenue to pay down existing debts.
3. Strengthen the Naira: Use the revenue from crude oil sales to stabilise and support the Naira against the dollar.

By implementing these measures, President Tinubu can address Nigeria’s immediate financial constraints and set the stage for economic recovery. If this strategy is pursued consistently, Nigeria could see significant improvements within six months.

In summary, optimising crude oil production is not just a temporary fix but a crucial strategy for overcoming Nigeria’s current economic difficulties.

Credit: Dr Olisa Agbakoba SAN, Senior Partner, Olisa Agbakoba Legal.