The International Institute for Petroleum Energy Law and Policy (IIPELP) has revealed that Nigeria will produce about 1.3 million bopd by 2023 to meet rising fuel demands.

According to IIPELP, at the country’s current crude oil production level, the rising demand will be huge on Nigeria.“In IIPELP’s analysis, by 2023, given the current rate of growth, Nigeria’s refining capacity would have to grow to 1.3 million barrels of oil per day which currently exceeds government entitlement crude under current fiscal arrangements. This means that Nigeria would need to import crude to feed potentially an expanded refinery capacity or compel its partners’ entitlement crude to be delivered to the domestic market,” the institute said.

It added that the possible devaluation of the currency will allow sound economic management and encourage genuine investors in the country while the removal of subsidy should allow Nigeria to be served by other oil companies except the Nigerian National Petroleum Corporation (NNPC).

“IIPELP has always believed that the way to reform the petroleum sector or any other sector is to incentivize supply and this can only be done when there are potentially, multiple sources of that supply and investment decisions can be made on a sound economic basis,” it explained, adding that the liberalization of the downstream petroleum sector is both an essential and sufficient condition for Nigeria’s economic development, Todays news reports.

Anita Fatunji