Elumelu Blames Tariffs for Nigeria’s Low Crude Oil Output

June 15, 2022
Elumelu crude oil output

By Dipo Olowookere

Chairman of United Bank for Africa (UBA) Plc, Mr Tony Elumelu, has attributed the declining crude oil output in Nigeria to tariffs in the oil-rich Niger Delta region of the country.

The Delta State-born businessman, while speaking recently in an interview on CNN’s One World with Zain Asher, also lamented about the insecurity in Nigeria, noting that it was chasing investors away as they would take their funds to safer climes.

In a Monthly Oil Market Report released on Tuesday by the Organisation of the Petroleum Exporting Countries (OPEC), it was revealed that in May 2022, the country recorded the second-highest decline in oil production as it lost 45,000 barrels per day.

“Crude oil production has gone down because of tariffs in the Niger Delta area. We need to fix that. There’s so much happening in the world in terms of oil prices going up, and my country is not benefiting from this,” Mr Elumelu told Ms Asher.

While commenting on insecurity in the country, the retired banker said, “We need to deal with insecurity in the country. There’s so much private capital looking for the right investment destination in the world, that capital will not come to Nigeria if we do not fix insecurity in the country.”

Mr Elumelu used the occasion to appeal to the United States to support African entrepreneurs, saying it would lead to economic prosperity and lift many out of poverty.

“The United States has a key role to play in helping to catalyse economic development and prosperity in Nigeria and in Africa.

“The tie between Nigeria, Africa and the US is very strong. Every kid grows up in Nigeria and Africa, wanting, and aspiring to be like an American, a strong cultural legacy and I believe that our political leadership defer a lot to also America.

“I need to be nice for America to realise its role and influence in Africa, and that can be governed as more positively in helping to catalyse development,” he stated.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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