The Minister of Petroleum (Oil), Heineken Lokpobiri, has said the country is expecting an impressive sum of $50 billion in investment in the oil sector.
Lokpobiri made this disclosure in a statement on Wednesday during an interactive session with members of the Nigerian Guild of Editors.
The Minister stated that the country has already increased production from 1 million barrels per day to 1.5 million barrels per day and is now aiming to boost it even further.
According to him, the reforms in the oil sector are primarily driven by President Tinubu’s support, which has enabled both the International Oil Companies (IOCs) and the Indigenous Petroleum Producers Group (IPPGs) to collaborate harmoniously.
“With $50 billion in investments expected, it is evident that our efforts to attract more investment and promote divestment in the oil sector, aimed at ramping up production, are yielding results. And we are not stopping yet.
“We have moved production from the 1 million barrels per day (mbpd) I met on the ground to 1.5 mbpd, though our target is to go beyond that, and we are on course. Achieving this has required significant investment from International Oil Companies (IOCs) and Indigenous Petroleum Producers Group (IPPGs), and we are working harmoniously.
“Thanks to President Tinubu’s support, we have successfully secured new investment and divestment deals, which the President referenced in his Independence Day speech. These investments are crucial, and we will continue to push forward in this direction,” Lokpobiri said.
What you should know
Despite being a leading oil-producing nation, Nigeria struggles with investment in the oil and gas sector as most IOCs in the country are plagued with oil theft incidents resulting in vandalism, kidnapping and bursts of oil pipelines.
In recent times, foreign companies like TotalEnergies and Shell have decided to exit the county’s onshore, citing unfavourable business environment.
Added to this is the recent pronouncement by the CEO of TotalEnergies, Patrick Pouyanne, that policy inconsistencies propelled the company to choose Angola over Nigeria as an investment destination for a $6 billion energy project.
With the passage of the Petroleum Industry Act (PIA) and other executive orders enacted by the President, the federal government said it is eyeing the return of IOCs in Africa’s leading oil producer.
Key among these reforms are three presidential directives issued in February 2024, which are expected to generate tens of thousands of new jobs, enhance foreign exchange earnings, stimulate tax revenue, and contribute to the nation’s macroeconomic stability.
