Oil Losses Drop from 97% to 2% Under Tinubu — Tony Elumelu

 

By Abdulahi Musa

The Chairman of Heirs Holdings and United Bank for Africa, Tony Elumelu, has said oil losses from his company’s operations have dropped from 97 per cent to two per cent since President Bola Tinubu assumed office in 2023.

Elumelu disclosed this on Sunday during a meeting with President Tinubu at the State House, Abuja, where he commended the administration’s efforts to improve security in the oil-producing areas.

The businessman said his company now retains 98 per cent of its crude oil production, attributing the development largely to improved security and measures to curb oil theft.

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

He also praised the administration’s foreign exchange reforms, saying his businesses could now access dollars without relying on personal connections at the Central Bank of Nigeria.

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

Elumelu had previously raised concerns about the devastating impact of crude oil theft on Nigeria’s petroleum industry, saying in 2022 that the country was losing more than 95 per cent of its oil production to theft.

He had cited the Bonny Terminal as an example, noting that it was receiving less than 3,000 barrels of crude per day despite having the capacity to handle more than 200,000 barrels daily.

The situation contributed significantly to production challenges in the sector and affected Nigeria’s ability to meet its Organisation of Petroleum Exporting Countries quota.

Meanwhile, Elumelu’s Heirs Energies, which operates Oil Mining Lease 17 acquired from Shell, has recorded significant growth in production since taking over the asset.

Production reportedly rose from about 21,000 barrels per day at acquisition to more than 58,000 barrels per day.

The businessman has repeatedly argued that improved security, effective regulation and increased investment are critical to unlocking Nigeria’s oil production potential.

He has also advocated increasing crude oil production to about two million barrels per day and beyond, saying higher oil revenues could provide resources for economic diversification and national development.