Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has warned against the mismanagement of Nigerian oil and gas assets, stating that companies without the technical or financial capacity to develop strategic national resources must either improve performance or step aside.
Speaking at the 24th Nigeria Oil and Gas (NOG) Energy Week in Abuja, on Tuesday, Lokpobiri condemned the practice of using oil and gas licenses merely as leverage to access capital, which is then diverted to unrelated ventures.
He described such behavior as detrimental to the country’s progress.
“We must now draw a clear line,” the minister said, adding: “These are frameworks built on trust; trust that operators will act in the nation’s best interest. If you cannot deliver, then either step aside or step up through genuine partnerships.”
Lokpobiri emphasized the need for Nigeria to unlock dormant reserves, re-enter shut-in wells, and turn idle licenses into tangible production.
He noted that the Federal Government, under the directive of President Bola Tinubu, has mandated the new NNPCL Board to review all operatorship agreements.
The minister described this move as a clear call to action aimed at aligning industry operations with national development goals.
Expressing concern over declining output, Lokpobiri stated that a single company produced more oil before the Petroleum Industry Act (PIA) was enacted than the entire sector does today.
Despite incentives and policies introduced by the PIA and other presidential directives, production has not improved accordingly.
“This is not a governance failure—it’s a performance issue,” he said.
The minister highlighted several reforms introduced by the Federal Government, including executive orders, fiscal incentives, and regulatory streamlining, all aimed at supporting operators and encouraging investment.
However, he insisted that results must now follow these efforts.
“We are not merely chasing production volumes; we are building a resilient economy,” Lokpobiri said.
“The responsibility is shared, but the obligation to deliver starts with those in control of the assets.”
On the establishment of the African Energy Bank, the minister confirmed that preparations are progressing and that the application process for the role of Bank President has closed and that Nigeria has met its legal and operational commitments as the host country.
He added that the African Petroleum Producers Organization (APPO), and Afreximbank are working towards convening the first shareholders’ meeting, which will officially launch the bank’s operations.
“Africa is awake. We are positioning ourselves in the global energy finance space, not just to maximise the value of our resources, but to drive energy security and prosperity for our people,” local media reports quoted the Nigerian minister as saying.
GIK/APA