Some experts have urged the federal government to grant fiscal incentives to international oil companies (IOCs) to boost output, combat oil theft and meet Nigeria’s 2.5 million barrels per day target.

They made the call in separate interviews with journalists on Monday in Lagos.

Sherifdeen Tella, head of the economic department, Olabisi Onabanjo University (OOU) in Ogun, said the new proposed oil production benchmark was achievable.

“The government should provide fiscal incentives like tax breaks to oil companies, especially those operating dormant oil wells with potential. This will encourage further investment and exploration in these areas,” Mr Tella said.

He stressed the need for more joint venture (JV) schemes among indigenous oil companies and their international partners.

“This will enable the country to explore for oil and gas in ultra-deep offshore, thereby increasing oil production in the process,” Mr Tella said.

Ayodele Oni, an energy lawyer with Partner Bloomfield Law Practice, said the 2.5 million barrels of oil were visible with strategic planning and adequate implementation.

Mr Oni advised the government to be innovative in addressing oil theft, stating that achieving the production target required strategic planning and proactive measures.

According to him, this will help to tackle oil theft and vandalism in the Niger Delta region.

“The government should also invest more in critical infrastructure, such as pipelines and other storage facilities since the sector is suffering from a dearth of this infrastructure to develop,” Mr Oni said.

He noted that the government should adopt favourable policies that encourage more investments in exploration and key infrastructure for the sector.

“This will attract both local and foreign investors and ensure consistency of the policy devoured by political risk.

“However, the policies should not only be on paper but could be implemented to the latter,” Mr Oni said.

Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), said Nigeria could increase its production to 2.5 million barrels per day (bpd) in the short term.

Mr Lokpobiri spoke during the launch of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) One Million Bpd Initiative.

The initiative aimed to increase the country’s current oil production capacity by an additional one million bpd in 12 to 24 months. 

(NAN)