Education
At 75, Wumi Iledare urges Nigeria to turn petroleum wealth into lasting economic value – EnviroNews
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Renowned petroleum economist and Professor Emeritus of Petroleum Economics at the Louisiana State University (LSU) Energy Institute in the United States, Prof. Wumi Iledare, has called for a fundamental shift in Nigeria’s management of its petroleum resources, urging the country to move beyond dependence on hydrocarbons towards building sustainable and productive economic value.
Iledare made the call as he marked his 75th birthday on Sunday, September 6, 2026, reflecting on Nigeria’s nearly seven decades of commercial oil production and the urgent need to translate petroleum wealth into lasting national development.
While acknowledging that the petroleum industry has generated substantial revenues, foreign exchange, infrastructure, institutions and professional expertise for Nigeria, the veteran energy economist argued that the country must now focus more deliberately on converting resource wealth into enduring productive capacity.
Reflecting on his personal and professional journey, Iledare noted that he was just five years old when commercial oil production began in Oloibiri in 1958. He later entered the petroleum industry professionally in 1980 and has since served in various capacities as a petroleum engineer, energy economist, teacher, researcher and contributor to public policy debates.
According to him, the most important question facing Nigeria’s petroleum industry today is no longer simply how much crude oil the country can produce, but how effectively its petroleum resources can be transformed into sustainable economic value.
“Production is not prosperity; revenue is not development; and resource abundance is not wealth,” Iledare said.
He stressed that every commercially produced barrel of oil requires significant investment in capital, technology and infrastructure, as well as competent management and investors willing to take geological, commercial, regulatory and security risks.
Iledare described the Petroleum Industry Act (PIA) 2021 as a major milestone in Nigeria’s petroleum history, noting that its institutional and fiscal reforms were designed to reset the country’s petroleum governance framework.
However, he said that five years after the enactment of the law, its success should no longer be measured by its provisions alone but by the outcomes it has delivered.
According to him, the effectiveness of the PIA should be assessed based on whether it has reduced uncertainty in the sector, accelerated project execution, attracted investment, improved production competitiveness, supported large-scale gas commercialisation and strengthened Nigeria’s ability to capture economic rent efficiently.
The respected petroleum economist also identified the growing participation of indigenous companies in the oil and gas industry as one of the most significant developments in Nigeria’s energy landscape, particularly following the restructuring and divestment of assets by international oil companies.
He described the transition as a major opportunity for Nigerian firms but cautioned that indigenous ownership should not be confused with genuine indigenous value creation.
According to him, Nigerian operators must build strong technical and commercial capabilities, develop competitive supply chains and position themselves to compete successfully beyond the domestic market.
On the downstream petroleum sector, Iledare welcomed the expansion of private refining capacity but warned that the existence of refineries alone would not automatically translate into economic value.
He said sustainable refining operations would depend on reliable access to crude oil, commercially viable supply arrangements, operational efficiency, effective logistics and access to both domestic and regional markets.
Iledare also emphasised the need to accelerate the commercialisation of Nigeria’s vast natural gas resources, observing that the country’s large gas reserves had yet to translate sufficiently into reliable electricity supply and industrial development.
He said Nigeria must develop scalable and commercially viable gas markets capable of supporting power generation, industrialisation and broader economic growth.
Speaking on the future of NNPC Limited, Iledare said the company’s commercialisation under the Petroleum Industry Act must amount to more than a change in corporate identity.
He urged the national oil company to demonstrate efficient capital allocation, sound risk management, commercially driven decision-making and greater accountability for its financial and operational performance.
Looking ahead, Iledare said Nigeria must strike a balance between maximising the value of its commercially viable petroleum resources and preparing for changes in the global energy landscape.
He cautioned against prematurely abandoning viable hydrocarbon resources but also warned against assuming that global demand for Nigerian oil and gas would remain unchanged over the next several decades.
To remain competitive, he said Nigeria must focus on reducing production costs, accelerating project execution, maintaining predictable fiscal and regulatory frameworks, strengthening indigenous operators, developing commercially viable refining operations and expanding scalable gas markets.
Ultimately, Iledare said, Nigeria’s petroleum wealth should serve as a means of building productive capacity in sectors beyond oil and gas.
“The energy transition for Nigeria should not simply be a transition away from hydrocarbons, but a transition from dependence on hydrocarbons to productive wealth built with hydrocarbons,” he said.
At 75, the petroleum economist said his greatest concern was no longer the sheer volume of hydrocarbons beneath Nigeria’s soil, but the proportion that could be produced economically and transformed into lasting value for the country.
“My generation inherited the resources; the next generation must inherit the value created by them,” he declared.
Iledare expressed gratitude to God for his life and professional journey and acknowledged the support of family, friends and colleagues who have contributed to his accomplishments over the decades.
He paid particular tribute to his wife, Abike Iledare, whose support, he said, has remained an important part of his personal and professional journey.
As Nigeria continues to navigate the challenges of energy transition, economic diversification and petroleum sector reform, Iledare’s message at 75 offers a reminder that the country’s greatest challenge may not be the depletion of its resources, but ensuring that the wealth generated from them is converted into lasting prosperity for future generations.