PUNCH
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has introduced a strategic plan to address challenges and leverage opportunities within Nigeria’s petroleum industry.
A statement on Saturday by the Special Assistant on Media and Communication to the Minister, Nneamaka Okafor, revealed that Lokpobiri presented the plan at the Cross Industry Group meeting in Istanbul, Turkey, while addressing a gathering of Nigeria’s leading oil producers.
The statement noted that Lokpobiri highlighted the oil sector’s critical role in Nigeria’s economy, noting that it contributes approximately 85% of government revenue and serves as a key source of foreign exchange. He emphasised the need for Nigeria’s oil and gas sector to remain resilient, competitive, and profitable.
The minister outlined a dual approach for the industry’s future, focusing on maximising crude oil production while supporting a transition to cleaner energy.
“In the short term, our focus remains on increasing revenue from crude oil production,” Lokpobiri stated, affirming the Federal Government’s commitment to addressing operational bottlenecks and upgrading infrastructure.
Recognising the urgency of cost reduction, he highlighted FG’s measures aimed at streamlining operations, particularly upstream activities, to remain competitive in a fluctuating 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 clearly stated.
The minister also urged industry players to embrace investment in cleaner, more sustainable methods, stressing that Nigeria’s transition will remain pragmatic and focused on local priorities.
Acknowledging the persistent security challenges in the Niger Delta, the minister reported ongoing efforts to protect Nigeria’s oil infrastructure through enhanced security measures.
He said, “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.
“The government has also implemented technology-driven solutions, including drone and satellite surveillance, to enhance the security framework and detect potential threats to the industry.”
He also noted that the comprehensive package of reforms and incentives to revitalise Nigeria’s oil and gas sector aims to attract greater investment and stimulate economic growth.
“Key elements include the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production, offering fiscal benefits to companies involved in the sector. In addition, directives focus on reducing contracting costs and timelines, mandating that the procurement cycle be streamlined to six months, enhancing 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”, Lokpobiri stated.
