Abuja: Dr Billy Gillis-Harry, an energy expert, has emphasized the implications of the United Arab Emirates’ (UAE) exit from the Organisation of the Petroleum Exporting Countries (OPEC) for Nigeria’s oil strategy. He suggests that Nigeria should reassess its approach, focusing on national economic interests.
According to News Agency of Nigeria, Gillis-Harry, who also serves as the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), conveyed these insights during an interview. The UAE officially withdrew from OPEC on Friday, aiming to prioritize its own national interests, boost oil production, expand market share, and free itself from the production quotas set by the cartel.
This move by the UAE highlights growing fractures within the oil alliance, following previous exits by countries such as Qatar, Ecuador, and Angola. These developments raise questions about OPEC’s long-term cohesion and its influence in the global energy markets.
Gillis-Harry noted that the UAE’s decision underscores the importance of sovereign decision-making, pointing out that countries can reassess alliances when they no longer align with economic goals. He stressed that this development supports PETROAN’s longstanding position that Nigeria should think beyond OPEC production quotas and aim for higher crude oil output to maximize value.
He recommended that Nigeria should target increasing production to about four million barrels per day, with a significant portion allocated to domestic refining. This would enable Nigeria to become a net exporter of refined petroleum products, thereby boosting revenue and reducing reliance on imports.
Gillis-Harry indicated that such a strategy could enhance economic growth, create jobs, and conserve foreign exchange currently spent on importing refined products. However, he also noted that while the UAE’s decision offers lessons, Nigeria might not be ready to exit OPEC due to existing structural and policy constraints.
The PETROAN president advised that Nigeria should concentrate on improving its production capacity and economic resilience before considering a similar move. Regarding the impact of the UAE’s exit, Gillis-Harry warned that Nigeria might face increased competition in the global oil market as non-OPEC producers gain more flexibility in pricing and output.
He added that managing existing forward sales of Nigeria’s crude oil could pose challenges, requiring careful handling to safeguard national economic benefits. Gillis-Harry concluded that although some pressure might arise, the development is unlikely to have a significantly negative impact on Nigeria if strategic measures are implemented. He emphasized the need for Nigeria to adopt policies that prioritize long-term economic gains while maintaining competitiveness in the evolving global energy landscape.