Nigeria’s Minister of State for Petroleum Resources, Senator Heineken Lokpobiri has said that the estimated 125 billion barrels of oil in Africa is a great asset base to drive development on the continent.
He said this during the 3rd African Local Content Roundtable which took place in Abuja, Nigeria, earlier this week. The event was organized by the African Petroleum Producers Organization (APPO) and hosted by the Nigerian Content Development and Monitoring Board (NCDMB).
According to him, Nigeria is on the brink of a remarkable transformation with capable indigenous companies ready to boost production and as regulators, the government stands ready to support them.
He admitted that while industry challenges are significant, the government’s determination is stronger.
He stated further that Nigeria is committed to in-country value addition, environmental sustainability, and boosting intra-Africa trade. During his address, he also said the event is in line with the plans the Nigerian government has regarding the oil sector:
- “This gesture is in line with the renewed hope agenda of President Bola Ahmed Tinubu which is anchored on positioning the Nigerian economy to look inwards for goods, services and manpower needs for strategic sectors of the economy. We recognize the immense economic and social impacts that hydrocarbon reserves hold for Africa.
- “With an estimated amount of 125 billion barrels which represents about 10% of global carbon reserves – this is very important as a very great asset base to drive development in Africa. I believe that our responsibility as African oil-producing countries is to explore the oil and gas resources for the benefit of our citizens, business communities, and governments of our respective countries.
- “As industry policymakers, we acknowledge the challenges that come with this sector including price volatility, dependence on foreign technology, reliance on offshore funding and lately, sustainability concerns. Therefore, it is imperative we work together to address these issues, foster cooperation and implement strategies that promote sustainable development and inclusive growth.”
Anticipating growth in Nigeria’s oil sector
Ms. Olu Verheijen, the special adviser on energy to President Bola Ahmed Tinubu, has outlined the administration’s primary focus areas for boosting oil production in Nigeria.
These key areas, as she emphasized during an interview at the recent Africa Oil Week (AOW) conference, are security and Niger Delta development investments.
Verheijen highlighted that the government received valuable feedback from oil investors at the conference.
These insights underscored the urgency of addressing insecurity, particularly crude oil theft, in the Niger Delta region.
Additionally, it emphasized the need for comprehensive development in the region to provide employment opportunities for the young population, ultimately safeguarding oil and gas assets.
She explained that the administration is prioritizing engagement with existing oil and gas investors who are already operational in Nigeria before actively seeking new investors.
This strategic approach aims to better understand their goals and align the government’s efforts with their interests.
As a result of these engagements, an impressive $55 billion worth of investments has been lined up.
In September 2023, Ms. Verheijen revealed significant investment opportunities, with a projection of $55.2 billion in investments by 2030.
A substantial portion of this, approximately $13.5 billion, is expected to be invested by these companies within a year.
Notably, the short-term investment component of $13.5 billion, currently in the pipeline, is anticipated to facilitate the achievement of a production goal of 2.1 million barrels per day by December 2024, provided no unforeseen challenges hinder progress.