Tony Elumelu, Chairman of Heirs Holdings, has made bold statements regarding Nigeria’s ongoing struggles to meet its OPEC production quota, attributing the shortfall not to low investment, but to rampant oil theft.
In a recent interview with the Financial Times, Elumelu highlighted the stark contrast between Nigeria’s faltering oil sector and other oil-producing nations, whose foreign reserves are on the rise.
“The reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple! Meanwhile, oil-producing countries are smiling as their foreign reserves are rising. What is Nigeria’s problem? We need to hold our leaders more accountable!,” he stated.
Elumelu’s criticism didn’t stop there. He revealed that his attempt to acquire a lucrative oil field in Nigeria was blocked by former President Muhammadu Buhari and his late Chief of Staff, Abba Kyari. According to Elumelu, he had been pursuing the acquisition since 2017 and had successfully raised $2.5 billion for the deal. However, Buhari’s administration rejected the proposal, arguing that such a strategic asset should not be controlled by a private operator.
“The rejection defied logic,” Elumelu said, expressing his disbelief at the administration’s decision. He pointed out that the oil field would have been purchased from a foreign company, raising questions about why the Nigerian government considered it a risk for a domestic private entity to manage the asset.
Elumelu, who is also the Chairman of United Bank for Africa (UBA), emphasized that his company’s offer was not just a business move but an opportunity to retain valuable resources within Nigeria. “We wanted to become a Fortune 500 company and we estimated what we needed. It’s not naira, it’s huge dollars,” he stated, underscoring the potential economic benefits that could have been realized had the deal gone through.
In addition to discussing his failed bid to acquire the oil field, Elumelu touched on the broader issue of oil theft, which has long plagued Nigeria’s petroleum industry. He argued that this ongoing theft is a significant factor behind Nigeria’s inability to meet its production targets, further exacerbating the country’s economic challenges.
On a different note, Elumelu addressed the “Japa syndrome,” a term referring to the increasing trend of young Nigerians emigrating to countries like Canada, the UK, and the US in search of better opportunities. Surprisingly, Elumelu expressed his support for those who choose to leave, acknowledging the lack of job opportunities in Nigeria as a “betrayal of a generation.” He stated, “I support it, totally. I don’t have a problem with people saying ‘I’m going to Canada, UK or US.’”
However, Elumelu also encouraged those who decide to stay in Nigeria to focus on creating an impact and building a legacy. “For people who decide to find solutions elsewhere, no one should stop them. But for those who decide to stay, they should try to create an impact and build a legacy,” he added.
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