Nigeria’s Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, recently presented a transformative vision for the nation’s oil and gas sector at the Cross Industry Group (CIG) meeting in Istanbul, Turkey. Addressing the Oil Producers Trade Section (OPTS), an alliance of five major oil producers in Nigeria, Lokpobiri underscored the critical role of the petroleum industry in the Nigerian economy, highlighting its significant contributions to government revenue and foreign exchange.
Lokpobiri’s presentation centered on a dual approach to maintaining Nigeria’s position in the global energy market. While maximizing crude oil production remains a priority, he emphasized the need to transition towards cleaner energy sources. As the world shifts its focus to sustainable energy, Lokpobiri noted that Nigeria’s oil and gas sector must adapt to stay competitive and resilient.
Global trends are moving towards cleaner energy, and Nigeria must be part of that transition,Lokpobiri said.The government has prioritized natural gas as a cleaner alternative while also exploring renewable energy options to diversify Nigeria’s energy mix.
A statement from Lokpobiri’s Special Adviser on Media and Communication, Nneamaka Okafor, highlighted that the minister's approach seeks to balance current energy needs with long term environmental goals.
To remain competitive in a volatile market, Lokpobiri outlined plans to streamline operations, particularly within the upstream sector. He explained that reducing operational bottlenecks and upgrading infrastructure are top priorities for the government. This approach includes tackling high contracting costs and shortening procurement timelines to attract more investors and stimulate growth.
In his address, Lokpobiri introduced the VAT Modification Order 2024 and the Tax Incentives Order for deep offshore oil and gas production. These measures aim to provide financial relief to companies in the sector, making the Nigerian market more appealing for investment. Additionally, the minister emphasized the need for efficient procurement, mandating a streamlined procurement cycle of six months.
Acknowledging the persistent security issues in the Niger Delta, Lokpobiri discussed efforts to safeguard oil infrastructure. Enhanced military support from the Nigerian Navy and the Joint Task Force (JTF), along with increased community engagement and economic empowerment programs, are key components of the government’s plan to combat pipeline vandalism and oil theft. Lokpobiri emphasized that securing Nigeria’s oil infrastructure is essential to achieving the government's vision for a robust petroleum sector.
In closing, Lokpobiri reiterated the government’s commitment to transforming the oil and gas sector, recognizing the need for Nigeria to adapt to evolving global energy trends. By focusing on natural gas as a cleaner energy source and gradually incorporating renewables, Nigeria aims to secure its place in the future energy landscape while meeting current demands. The strategic plan Lokpobiri unveiled in Istanbul provides a roadmap for balancing economic growth with environmental sustainability, ensuring Nigeria’s oil industry remains viable in an ever changing world.
With these initiatives, Nigeria hopes to attract increased foreign investment and bolster the petroleum industry’s contribution to national development. Lokpobiri’s vision highlights the government’s determination to evolve and stay competitive, aligning Nigeria with global shifts towards sustainable energy without compromising on economic growth.