We now retain 98% of our oil production, no longer need CBN connections to access Dollars — Elumelu praises Tinubu

Nigerian businessman and Chairman of Heirs Holdings and United Bank for Africa, Tony Elumelu, has said his company now retains 98 per cent of the oil it produces, attributing the improvement to enhanced security under President Bola Tinubu’s administration.

Elumelu made the disclosure while speaking with President Tinubu at the State House in Abuja on Sunday.

According to him, oil losses from his company’s operations have dropped dramatically since 2023.

“Mr. President, before you took over in 2023, we were losing 97% of our oil production. Today, losses are down to 2%; we retain 98%,” Elumelu said.

He also said the company no longer needed personal connections at the Central Bank of Nigeria to access foreign exchange.

“We no longer need to know anyone at the CBN to access dollars,” he added.

Oil theft had severely affected production

Elumelu had previously raised concerns over the scale of oil theft in Nigeria, particularly before the Tinubu administration came into office.

In 2022, he said Nigeria was losing more than 95 per cent of its oil production to theft. He cited the Bonny Terminal, which he said was receiving less than 3,000 barrels of crude per day despite having a capacity of more than 200,000 barrels daily.

The situation contributed to production challenges across the industry and, at the time, forced Shell to declare force majeure.

Elumelu argued that oil theft, rather than a lack of investment alone, was a major reason Nigeria struggled to meet its OPEC production quota.

Security measures credited with reducing losses

The improvement highlighted by Elumelu is consistent with broader efforts by the Nigerian oil industry to reduce crude theft and losses.

The Nigerian Upstream Petroleum Regulatory Commission has previously pointed to improved security measures, pipeline surveillance and stronger monitoring and reconciliation processes as factors contributing to reduced losses.

The measures are designed to track crude production and compare volumes with what ultimately reaches export terminals.

FX reforms also improving business environment

Elumelu’s comments on dollar access also reflect changes in Nigeria’s foreign exchange market since 2023.

The Tinubu administration introduced major reforms aimed at unifying the country’s multiple exchange rates and reducing the opaque allocation system that had previously characterised access to foreign currency.

Elumelu said the changes had made it easier for his businesses to obtain dollars without relying on personal connections within the CBN.

Heirs Energies records production growth

Elumelu’s Heirs Energies operates OML 17, an oil asset acquired from Shell.

Production from the asset has increased substantially since Heirs Energies took over operations, rising from about 21,000 barrels per day at acquisition to more than 58,000 barrels per day, according to figures previously disclosed by Elumelu.

The businessman has repeatedly used the company’s performance to demonstrate what he believes can be achieved in Nigeria’s oil sector when security, regulation and investment conditions improve.

He has also called for Nigeria to increase crude oil production to around two million barrels per day and eventually higher, arguing that increased oil revenues could help finance economic diversification and development.

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