Nigeria’s Oil Ambition Needs Financing Rethink to Hit Output Targets – Dr. Ainojie ‘Alex’ Irune
Dr. Ainojie ‘Alex’ Irune, Executive Director at Oando PLC and Managing Director of Oando Energy, has called for a fundamental “financing rethink” to bridge the gap between Nigeria’s oil production reality and its 2 million barrels per day (mbpd) ambition. Speaking on the sidelines of a 2026 energy forum, Dr. Irune emphasized that as the industry navigates the “energy transition,” the traditional capital pools that once funded upstream projects are rapidly evaporating. He argued that for Nigeria to secure its energy future, it must move toward a more “resilient and creative” financing model that leverages both domestic capital and specialized global investment.
From a macroeconomic perspective, Dr. Irune pointed out that the “liquidity of the sector” is the bedrock of Nigeria’s $1 trillion GDP journey. However, he noted that the “cost of production” remains a significant hurdle. By rethinking how we finance the acquisition and operation of divested assets, he suggests that indigenous players can drive the “technological sovereignty” needed to optimize aging infrastructure. For Dr. Irune, it is not just about the volume of crude; it is about the “efficiency of the dollar” spent to bring each barrel to the surface.
Historically, the Nigerian oil and gas landscape was dominated by international giants, but Dr. Irune highlighted that the current era of divestment represents a “passing of the torch” to indigenous companies. He cautioned, however, that this transition requires a “harmonized fiscal environment” and robust “security of the person and asset” to be successful. He advocated for the use of asset-backed financing and infrastructure bonds to tap into the “deep pockets” of local institutional investors, such as pension funds, which are often overlooked in the upstream value chain.
Dr. Irune’s voice is one of “operational realism.” He maintains that the “asymmetric threats” facing the industry from pipeline vandalism to regulatory uncertainty can be mitigated through a more inclusive and transparent financing framework. By aligning with the Petroleum Industry Act (PIA), he believes the sector can move from a “survivalist” mindset to one of “sustainable growth,” ensuring that the 2 mbpd target becomes a floor rather than a ceiling for the nation’s output.
As we move further into the 2026 fiscal year, Dr. Alex Irune’s message remains clear: the “security of supply” is intrinsically linked to the “agility of capital.” For Nigeria to truly assert itself as a global energy powerhouse, it must empower its local champions with the financial tools required to innovate and scale. Ultimately, the “financing rethink” is about building a domestic energy ecosystem that is robust enough to withstand global market shocks while delivering the “democracy dividend” of energy security to every Nigerian.
