Producing two-million barrels of crude oil per day, Nigeria has approximately 38 billion barrels of crude oil and 188 trillion standard cubic feet of natural gas in reserve. Despite its abundance of natural and human resources — and its position as the largest crude oil producer in Africa — the country suffers from a persistent fuel shortage, with most Nigerians lacking adequate electricity. Clearly, the current industry model is not working in Nigeria. In the last 7 years, Nigeria has spent N4.7 trillion on petroleum products importation and subsidy payment.
I came to the MIT Sloan Fellows Program to find a solution. I am convinced that Nigeria has the capacity to become a leader in making liquid energy accessible and affordable to Africans. To enable such radical transformation, we need to make major policy, financial and operational changes.
The first step to finding a solution is identifying the cause of the current problems. Three main issues are prevalent in Nigeria: dysfunctional refineries, dependence on imported products and government regulation, and pipeline vandalism and distribution challenges.