Nigeria Urged to Transform Oil Wealth into Economic Value

Prof. Wumi Iledare, a foremost petroleum economist and Professor Emeritus of Petroleum Economics, stated that Nigeria must convert its petroleum resources and revenues into lasting productive wealth. On September 6, 2023, he marked his 75th birthday and shared reflections on Nigeria’s petroleum industry, noting the country's evolution from early optimism surrounding oil discoveries to a heavy dependence on crude oil revenues.

In his commentary titled “PEWI @75: Reflections on Nigeria’s Petroleum Industry, Value Creation and the Unfinished Economic Journey,” Iledare questioned what Nigeria has truly gained after nearly seven decades of commercial petroleum production. He argued that while petroleum has generated significant foreign exchange and public revenues, the country has not fully converted its resource endowment into sustainable economic value.

Iledare emphasized that petroleum policy should focus on creating an investment-friendly environment rather than merely maximizing government revenue. He described the Petroleum Industry Act (PIA) 2021 as a significant milestone aimed at reforming Nigeria’s petroleum governance framework.