Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has introduced a strategic plan to tackle challenges and seize opportunities in Nigeria’s petroleum industry.
In a statement released on Saturday by his Special Assistant on Media and Communication, Nneamaka Okafor, it was revealed that Lokpobiri presented the plan during the Cross Industry Group meeting in Istanbul, Turkey, while addressing top representatives from Nigeria’s oil producers.
Highlighting the sector’s vital contribution to Nigeria’s economy, Lokpobiri noted that the oil industry accounts for approximately 85% of government revenue and is a key source of foreign exchange.
He stressed the importance of ensuring that Nigeria’s oil and gas sector remains resilient, competitive, and profitable.
The minister outlined a dual approach for the industry’s future: maximizing crude oil production while supporting a transition to cleaner energy sources. “In the short term, our focus remains on increasing revenue from crude oil production,” he stated, reinforcing the Federal Government’s commitment to resolving operational bottlenecks and enhancing infrastructure.
Emphasizing the urgency of reducing costs, Lokpobiri detailed measures being implemented to streamline operations, particularly in upstream activities, to maintain competitiveness in a volatile global market.
“A significant part of the government’s vision involves balancing energy demands with environmental considerations.
The world is moving toward cleaner energy, and Nigeria must be part of that transition. The government has prioritised natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix,” he stated.
Lokpobiri also called on industry players to invest in cleaner, more sustainable methods, underscoring that Nigeria’s transition will be pragmatic and focused on local priorities.
Addressing ongoing security challenges in the Niger Delta, the minister outlined efforts to protect Nigeria’s oil infrastructure through improved security measures. He stated, “We are engaging communities and encouraging partnerships that foster local ownership of critical assets.
Efforts include increased military support, particularly from the Nigerian Navy and Joint Task Force (JTF), combined with community engagement and economic empowerment initiatives to combat pipeline vandalism and oil theft.”
Additionally, he mentioned the government’s implementation of technology-driven solutions, such as drone and satellite surveillance, to enhance security and detect potential threats to the industry.
The comprehensive package of reforms and incentives aims to revitalize Nigeria’s oil and gas sector, attract more investment, and stimulate economic growth.
Lokpobiri highlighted key elements, including the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production, which offer fiscal benefits to companies in the sector.
He also announced directives to reduce contracting costs and timelines, mandating a streamlined procurement cycle of six months to enhance efficiency for investors.
“By incentivising both non-associated gas and deep-water developments, Tinubu’s administration seeks to bolster Nigeria’s competitiveness as an energy investment hub in Africa.
This forward-looking framework is designed to harness the country’s resources while diversifying revenue streams, ensuring a balanced approach that supports growth and sustainability in Nigeria’s oil and gas industry,” he stated.
Moreover, the minister reaffirmed the government’s commitment to the Nigerian Oil and Gas Industry Content Development Act.
While he recognized the importance of promoting local content, he stressed the need for a balanced approach to avoid deterring foreign investment.
Lokpobiri assured stakeholders that discussions are ongoing to align amendments to the NOGICD Act with the dual goals of fostering local growth and maintaining investor confidence.
He also urged industry players to commit to Nigeria’s ambitious goal of increasing oil production by over one million barrels within the next 24 months. “We cannot afford to hold valuable fields in perpetuity. It’s either you put them to work or relinquish them. The era of renewing licenses without development is over,” he declared.
Lokpobiri’s address served as a call to action for industry stakeholders to collaborate in securing Nigeria’s energy future, emphasizing that “Nigeria’s petroleum resources hold immense value and potential.
Realizing this potential requires addressing our challenges and leveraging our strengths to ensure shared prosperity and energy security.”
