Minister Unveils Strategic Plan to Transform Nigeria’s Oil Industry

Senator Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, recently introduced a comprehensive strategy aimed at transforming the petroleum sector by addressing its challenges and seizing emerging opportunities.

Speaking at the Cross Industry Group meeting in Istanbul, Turkey, the minister highlighted the oil sector’s significance to Nigeria’s economy, noting its contribution of around 85% of government revenue and its role as a major source of foreign exchange.

Lokpobiri’s plan includes a dual focus on maximizing crude oil production and supporting a gradual transition to cleaner energy sources. In the short term, the Federal Government will prioritize increasing crude oil revenue through enhanced production, infrastructure upgrades, and the elimination of operational bottlenecks.
The minister also emphasized cost reduction measures, particularly in upstream activities, to maintain competitiveness in the global market.

“The government has prioritized natural gas as a cleaner alternative while actively exploring renewable energy options to diversify Nigeria’s energy mix,” he said, calling on industry players to invest in sustainable practices that align with environmental trends.

In response to security concerns in the Niger Delta, Lokpobiri highlighted ongoing efforts to safeguard oil infrastructure. These efforts include military support from the Nigerian Navy and Joint Task Force (JTF), community partnerships, and economic empowerment programs to combat pipeline vandalism and oil theft. Advanced technology solutions such as drone and satellite surveillance have also been implemented to strengthen the security framework.

The government has introduced new reforms and incentives designed to attract investment in the oil and gas sector. The VAT Modification Order 2024 and Tax Incentives Order aim to benefit companies involved in deep offshore oil and gas production, with fiscal incentives to streamline contracting and reduce costs. Lokpobiri noted that these reforms are expected to make Nigeria more competitive in Africa’s energy investment landscape.

Additionally, the minister affirmed the government’s commitment to the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, promoting local content without deterring foreign investment. He urged industry stakeholders to support Nigeria’s goal of increasing oil production by over one million barrels within the next 24 months, emphasizing that unused fields must either be developed or relinquished.

Lokpobiri’s strategic vision underscores the need for collaborative efforts to secure Nigeria’s energy future, stressing 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.”