(Ecofin Agency) - Nigeria needs about $28bn worth of investment to increase its daily crude oil production to 4 million bpd (from 1.9 million bpd in December 2016) and gas production to 10 billion cubic feet, according to the Nigeria Council of the Society of Petroleum Engineers (SPE).

The Chairman of SPE, Saka Matemilola, who disclosed this at a media briefing in Lagos on Tuesday, said that such investments can only be derived from the private sector. However, the government should give incentives to investors to attract investment into the oil and gas sector.

He explained that this investment if secured would help in job creation, improve the sector through the production of adequate gas to fire power plants, which would generate sufficient electricity to support large and medium scale industries and help in increasing government’s earnings from oil and gas exports proceeds, which will in turn help increase the Gross Domestic Product (GDP).

Early 2016, Nigeria’s crude oil output dropped to as low as 900,000 bpd as a result of attacks of production infrastructures. However, following negotiations with the militants responsible for the vandalism acts, the production rose to 1.9 million bpd in December 2016. Yet, this level is still below the 2.2 million barrels benchmarked in the 2017 budget.

Anita Fatunji