Chairman of Shoreline Group, Kola Karim, has commended the President Bola Ahmed Tinubu administration for introducing an executive order that increased the spending limit for operators in the oil and gas sector from $2 million to $10 million.
Karim, who spoke at the ongoing ninth edition of the Future Investment Initiative (FII) in Riyadh, Saudi Arabia, delivered a paper on leadership, energy, and Africa’s development future, highlighting the role of bold policy reforms in unlocking Nigeria’s full oil potential.
He said: “Before now, $2 million wouldn’t even buy a compressor, which is essential to operate in oil and gas. The problem of Nigeria’s oil and gas industry isn’t about reserves—we have 47 billion barrels of oil and 210 trillion cubic feet of gas—it’s about aging infrastructure.”
According to him, the order has already begun to yield results, allowing companies to import and install much-needed equipment, boosting production and drilling activity.
“This production growth is not by accident. The executive order has made it easier for operators to invest and get things done. We’re now at about 1.7 million barrels per day, and with the renewed drilling activity, we’ll surpass the 3 million target.”
But Karim believes Nigeria must be more ambitious.
“For me, the focus shouldn’t be three million. By 2030, Nigeria should target five million barrels per day,” he insisted, comparing Nigeria’s potential to global leaders: “The U.S. is producing 12.5 million barrels and targeting 15; Saudi Arabia is at 11.5. Ten years ago, the UAE was producing what Nigeria was, 2.5 million barrels, but today, they’re at 4.2.”